Seán Fleming (Laois-Offaly, Fianna Fail)

The situation is unprecedented. The only effective acid test is the increase in the cost of Government borrowing. It is the one definitive figure we have to work with. That figure must be recouped so that the banks do not derive a profit from this. All this is done on a growing concern basis. In other words, the scheme is predicated on the understanding that the financial institutions will trade out of this situation. That is the fundamental issue.

There has been much debate on the prospect of the State investing in, capitalising, part-nationalising or nationalising banks. It has been done in other jurisdictions, including our closest neighbour. It is my personal view that we should avoid such an approach. We have provided a guarantee. It is to be hoped that the market will settle next year. The taxpayer cannot be asked to cough up €20 billion to provide capital to financial institutions. I would prefer to see those funds coming from other sources, even if that required a change of ownership of one or more institutions, rather than raising them from the hard-pressed taxpayer.

I welcome the changes in regard to the remuneration of directors and other members of management. Increased transparency in this regard is welcome. I look forward to the publication of the reports on a six-monthly basis for examination by the relevant Oireachtas committee.

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