Richard Bruton (Dublin North Central, Fine Gael)

In section 1 the Minister for Finance introduces a definition of "financial support" which includes a loan, a guarantee, an exchange of assets and any other kind of financial accommodation or support. So far in the debate it has been indicated the Bill will simply extend a guarantee from the State to the banks' depositors. However, in the Bill the Minister is taking power to provide much more than a guarantee. Under this definition, the Minister is providing for any kind of financial accommodation or support. Why is the Minister extending the definition from the guarantee? If he is offering support of a financial nature that is not in the nature of a guarantee such as straight cash, taking a preferential shareholding or some other vehicle he envisages under this definition, how will the Dáil become aware of it? If the Minister draws down funds for this purpose, it will be from the Central Fund and will not come before the House through the normal course of a Vote in which the Dáil could debate it. Why has it been decided to extend the definition? If he does take up these wider powers, how will the Dáil be informed?

While I do not want to appear obtuse, the Minister indicated that the EU-backed elements on the liability side will always be there as a buffer. I may be incorrect but my understanding is that of the €520 billion of assets, the European Central Bank has taken an equivalent amount of the best assets.

See this speech in context