Brian Lenihan Jnr (Dublin West, Fianna Fail)

Deputy Gilmore has raised the same questions as Deputy Kenny. In relation to the medical cards, legislation to give effect to the changes in this regard will be enacted before the end of 2008 and will come into effect on 1 January 2009. Heads of a Bill, to give effect to the budget arrangements, have been drafted and will come before Government soon. I anticipate the legislation will be published this month.

As regards the passing on of interest rate reductions by the European Central Bank, I have already explained that I anticipate these interest rate changes will be passed on. I wish to put on the record and to explain that under the guarantee scheme the Government has entered into an arrangement with each of the institutions whereby substantial influence can be exerted on these institutions through the appointment of directors and participation by the regulator in the credit and risk assessment procedures of these banks. It is in the banks' own commercial interests to pass on these interest rate reductions.

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