Brian Lenihan Jnr (Dublin West, Fianna Fail)

The scheme will end in two years' time and it cannot be extended. Deputy Creed asked about a sunset clause and this is the sunset for the scheme. The Government gave a letter to the relevant institutions on 30 September and this letter was reflected in legislation and in this scheme. The terms of the scheme have been cleared with the European Commission. It arose from a danger which had developed and the measures are proportionate to that danger. This proportionality means the scheme will expire on the date specified in the scheme.

Deputies Connaughton and O'Donnell touched on the evidence on toxic assets which the Financial Regulator gave to the Oireachtas Joint Committee on Finance and the Public Service. The regulator made the point that our banks do not have excessive exposure to derivative contracts. He accepted these securities had a habit of cropping up in other sectors. While he was careful to state he did not wish to suggest we would not see them in areas such as reinsurance in the future, he did not regard them as a material matter in the context of banks' balance sheets.

The regulator also examined the focus on property. Deputy Connaughton quoted one of the figures he gave for property secured where the property was the only asset and the security and this figure was €15 billion. This property still has a value. As I pointed out earlier, it is not valueless. He also drew attention to the fact that the capital base of the banks is €42 billion.

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