Enda Kenny (Mayo, Fine Gael)

I was surprised to see the Minister for Finance announce at the weekend that the Government was not aware of the extent of the economic tsunami coming to our shores until July, after which its members went away on their holidays. I had thought the budget being brought forward by a number of weeks was the economic plan for survival for the country's economy and the road to the future for economic recovery and the protection and creation of jobs. The fact of the matter is that since then the Government has demonstrated it is rudderless and leaderless, and has neither coherence nor competence. In fact, the Minister's declaration was nothing other than a declaration of unfitness for office and unfitness to serve, and it particularly pointed at the Taoiseach himself in that he was Minister for Finance for a number of years before taking up his present position.

For 11 weeks since the Dáil passed the deposit guarantee legislation, we have waited for a decision in regard to recapitalisation of the banks and we have simply pointed out that businesses are in serious difficulty, there is no access to credit, overdrafts are being squeezed and 35,000 people have lost their jobs since that legislation was put through. At 8.45 p.m. on Sunday, an announcement was made not of action but of inaction with regard to the provision of €10 billion for recapitalisation of banks. The statement was vague, unconvincing and had neither specifics nor a strategic plan attached to it. It has failed to reassure anyone that the Government has a coherent plan to stabilise the banking system so that credit can continue to be provided for small businesses throughout the country.

As the Minister was unable to answer any question comprehensively on Sunday night about the Government decision taken on Sunday, will the Taoiseach clear up the confusion by answering a number of questions in this regard? First, when will the Government provide this €10 billion fund for recapitalisation of the banks? Second, what amount of money is to be provided by the Government from the National Pensions Reserve Fund either as preference shares or ordinary shares, or is any to be provided from that source? If that is the case, when does the Government propose to introduce the change in the legislation which will be required to get authorisation from the House to provide money from that source?

Is it the Taoiseach's intention to force or pressurise the banks so that, for example, by the end of January they will demonstrate they have internationally accepted levels of capital adequacy ratios available? Is it his intention to tell the banks it is not just the case that if the banks want to recapitalise, it is at their own discretion? If we are serious about protecting jobs that are now under serious threat, and about maintaining the economy throughout the country then, given that the Government is deep into the banking sector, as the Minister for Finance has said, it is in a position to exert leverage on the banks in a way that will guarantee that if the Government allocates money from the National Pensions Reserve Fund, it will actually flow as credit when required, particularly to small businesses to keep them alive. Is it the Taoiseach's intention to seek an assurance from the banks by the end of January that there will be an adequate, internationally accepted capital ratio in place? How does the Taoiseach intend to proceed following the vague announcement made on Sunday night?

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