Kieran O'Donnell (Limerick East, Fine Gael)

This month an extra 10,000 people are on the live register with unemployment at 6.3%. Many of these people's houses are in negative equity, yet they are watching the banks getting a deal from the Government in which they do not have to worry about repaying their debts. Any loan advanced from the guarantee must be at a premium rate. An oversight board must be put in place as outlined in amendment No. 13.

It is important that for any bank that receives funding under this scheme, a due diligence process is carried out on its loan book. A procedure must then be put in place for the bank to clean up its loan book. It is important conditions are laid down for banks to build up their reserves. Spain did not have these problems because its central bank imposed stricter capital ratio requirements. Ireland must now do the same. Restrictions on dividend payments and directors' bonuses must be introduced to help build up banks' reserves.

How does the Government propose to deal with a bank defaulting on loans? Has the Minister considered other measures such as mergers? The banks must be charged for the guarantee.

This is an historic occasion for the Dáil and the country. The Taoiseach and the Minister for Finance last night spoke about all parties working together on this issue. Going by this, the Minister must accept our amendments if they are of benefit in making the scheme viable. I hope the Minister will take this on board.

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