Eamon Gilmore (Dún Laoghaire, Labour)

The Taoiseach describes the circumstances we are in as an unprecedented disruption in financial markets. What we have seen in the past 24 hours is that a decade of corporate greed, property speculation and, in many cases, irresponsible banking has come home to roost. I accept the Government has had to act to deal with the crisis in banking and the financial markets. I hope it works.

However, I have several serious concerns about the Government's decision, the effect of which is to give a guarantee to the banks of almost three times our national income. It is a guarantee that, if called in fully, would take 37 years of income tax receipts to clear. I can see what is in this guarantee for the banks and their shareholders, some of whom have already made gains today on the strength of it. I can see what is in it for the six bank chief executives who between them earn €13 million a year. However, I cannot see what is in it for the people or the taxpayers who may yet have to foot the bill.

If the Taoiseach is proposing to hand over the deeds of the country to bail out the banks, what are we getting in return? I have heard him say there will be a charge, which, as I read it, will be passed on to bank customers anyway. This morning, the Minister for Finance told me conditions would be attached to this deal. Early this afternoon I had a briefing from his officials, but I still have yet to hear what conditions are being attached. I want to hear about them now.

Will the public effectively take all the risks for the banks while they get all the gains? The Taoiseach told Deputy Enda Kenny that the taxpayer will not be at risk and that the sector will discharge any call down the road. Will the Taoiseach explain this to me because I do not understand it?

Is it not the case that this guarantee will actually embolden the banks to take greater risks? What will the decision do to the nation's credit worthiness? The banks will be able to borrow but where will it leave the State's capacity to borrow? What does it do to the perception of the national debt? Will it be seen as the €46 billion it is or will the €400 billion guarantee be added to it?

Last night, due to what he describes as the unprecedented disruption in the financial markets, the Taoiseach could have bought a 50% stake in the entire banking sector for €5 billion. Instead he has given the banks a guarantee for almost €500 billion. The Taoiseach has not yet stated the nuts and bolts of this deal. What are the conditions? What are the banks being asked to return? What is in it for the public and the taxpayer?

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