Enda Kenny (Mayo, Fine Gael)

Obviously, there are a number of problems. My party supports the action taken by the Government, but it is important we know the attached conditions.

The Taoiseach has not responded to my question on whether the extent of bad property debt known to the Government, as outlined by the banks, the Central Bank and the Financial Regulator, will impact on the solvency of banks. Will he assure the House that the extent of the debt will not impact on the solvency of any of the institutions? What is the position regarding institutions beyond the named six? While the guarantee is not in place, my understanding is that there is fluid movement to the institutions named in it.

It is not a Central Bank or Financial Regulator scheme. Rather, it is a Government scheme underwritten by the taxpayer to the extent of €400 billion, between €200,000 and €250,000 per worker. In the interests of the taxpayer and the Government, it is important we know to what we are signing up. Banks are daily in a position to indicate the loans they consider to be bad debts. Given the risk associated with bad property debt and loans in a number of institutions, a different guarantee scheme in each case will be required. When the guarantee scheme is before the House for approval, will it reflect the difficulty and range associated with bad property debt in each institution? For bank or financial institution X, a particular kind of scheme may be required while the scheme for another institution, one with a greater risk attached to its property loans and debts, may be more robust, rigid and regulated. Will the Taoiseach clarify the position?

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