Brian Cowen (Laois-Offaly, Fianna Fail)

Involved in that figure is the capital and assets associated with these institutions, which exceed the liabilities of the institutions in terms of the lending they have put out. The residual about which we are talking is the need to make sure they can conduct their business by having access to funds. I have not handed over money to any bank. I have provided the reputation of this State to those banks to put them in a position whereby they can get access to funds to continue in a stable financial system so the economic and national life of this country can continue. That is what was necessary. That was the full advice available to me from the regulatory authorities that are charged with the responsibility of advising the Government in this matter. Anyone who has a cursory understanding of what has been happening in the European and United States' banking systems in the past few weeks, let alone months, would understand the nature of the challenge.

That is the situation that faces the Government and a populist argument to the contrary, I am afraid, does not cut it because what we are trying to make sure of here is that when we are dealing with this situation as it stands, the first call will be on the shareholders. The shareholders will be the first to have a problem in the event of there being a problem with any bank in terms of how it conducts its business from here on. The State guarantee does not exclude them from the first responsibility. They have assets and capital in their banks and those funds will have first call should there be any deficit emerging. The second call is the secured loans which are underwritten by the European Central Bank. The point I am making and the commitment I am giving is that in the event of having worked out whatever had to happen in relation to those banks and those assets so the maximum return and value comes back, in terms of how one would deal with that situation over time, if a deficit emerged, the sector would pay, not the Irish taxpayer. That is my commitment to the House.

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