Brian Cowen (Laois-Offaly, Fianna Fail)

I made it clear that the Government will continue to act in the overall interests of Irish business in order to ensure that employment remains at the maximum level and in order to maintain financial stability. We will do so on the basis of the most up-to-date information and accurate analysis of the material provided by those acting on behalf of the Financial Regulator, the Central Bank and Financial Services Authority of Ireland. We will not act in any other way. There is a number of major options available to the banking sector.

Capitalisation alone does not guarantee the access to credit we desire for Irish business. Recapitalisation has taken place in respect of certain banks and this has enhanced the capital adequacy ratios of those institutions without necessarily changing their lending policies. I will be insisting that in the business plans that have to be devised by those institutions covered by the State guarantee scheme, adequate lines of credit must be provided for Irish business. If the banks fail to make such provision, their business plans will not be accepted by the Government. We will be insisting that this mechanism be used as both an effective practical step and a means by which we can ensure that the banks meet their wider responsibilities.

The idea that recapitalisation alone can provide the means by which increased lines of credit might be accessed by business interests is not, despite the Deputy's suggestion to the contrary, a comprehensive one. There is every indication that the acquisition of capital might, as already stated, improve the capital ratios of the banks without increasing the lines of credit available to businesses. We are in an extremely difficult situation, the ramifications relating to which are extremely broad. The Government will take whatever decisions are necessary in the national interest.

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