Brian Cowen (Laois-Offaly, Fianna Fail)

Deputy Stagg, this is the answer to the question.

I refer to the other specific matter raised by Deputy Gilmore regarding what debt is being guaranteed by the State. On the basis of the advice we have received from the Central Bank and the Financial Regulator, the assets of the banks to which the guarantee relates exceed their liabilities. We are not including tier one capital arrangements, which includes equity or equity-like instruments. However, all other liabilities are being guaranteed by the State on the basis of the advice from those who are competent to so advise the Government.

Members should remember the purpose of this guarantee is to ensure that our banking system has access to adequate liquidity, in order that we can obtain the time and space to ascertain the manner in which the banking system may be restructured over time or developed in a way that will overcome this problem. The immediate issue before the Government was the liquidity question and it had to be addressed very quickly. On the advice of those from whom the Government should take advice in this regard——

See this speech in context