Brian Lenihan Jnr (Dublin West, Fianna Fail)

No. That general principle is reflected in the scheme, and if Deputy Burton examines the scheme with care she will see that the general principle as stated, that in regard to the specific indemnification it is restricted to the particular institution, holds. That is the provision of the scheme. That was always the provision of the scheme and the market notice does not change that in any way.

The covered institutions have provided an indemnity to the Minister in connection with any payments made under the guarantee given in respect of the particular covered institution's liabilities. The indemnity does not extend to amounts owing by other covered institutions to the Minister in circumstances where the Minister is required to make a payment on a guarantee given in respect of that other covered institution's liabilities. There is no cross-indemnity. It is up to the Minister to decide how best to achieve all of the objectives of the scheme in light of the relevant factors over time.

As I have emphasised on several occasions, the over-arching objective of the scheme is to remedy the serious disturbance that might have otherwise unfolded for the economy. It is about taking whatever steps are necessary to ensure that we have a banking system that as a whole works effectively, efficiently and competitively in facilitating all the day to day ordinary economic transactions of commercial, business, family and social life. The Financial Regulator has extensive regulatory powers to supervise the conduct of credit institutions' affairs. Our company law provides a strict legal framework governing the performance of the fiduciary responsibilities of boards and executives. The Government is satisfied that alongside the powers provided directly under the scheme the relevant public bodies, and in particular the Financial Regulator, have the authority and legal power to take whatever steps are necessary to continue to look after the interests of all depositors and customers, as well as that of the State and the taxpayer, which now arises on account of the guarantee.

Deputies will be aware that in order to promote the public interest covered institutions will be required under the scheme to appoint non-executive directors from a panel approved by me. I will shortly announce the membership of this panel. Deputies will also be aware that the scheme provides protection against excessive remuneration of directors and senior executives. I will be moving shortly to appoint the members of the independent covered institution remuneration oversight committee which will oversee remuneration plans in accordance with the scheme.

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