Joan Burton (Dublin West, Labour)

I move amendment No. 42:

In page 136, between lines 24 and 25, to insert the following:

"92.—The annual charge for the bank guarantee shall be brought within the scope of published exchequer accounts and budget forecasts and shall be earmarked as a contingency fund for 2010.".

The annual charge for the bank guarantee is €1 billion — calculated at €100 million per annum for ten years — and payable in instalments over a two-year period. The amendment suggests that this should come within the scope of published Exchequer accounts because it will otherwise be floated out as a fund until 2010. If it is not called upon, it will then revert to the Exchequer. While I do not want to attribute any bad intentions to the Minister, if the fund comes to the benefit of the Exchequer after 2010, it would make a nice pot of money for distribution as we move towards a general election at that time. We may, of course, have a general election before then.

Events have shown that, in respect of the fund, the banks got off extraordinarily lightly. The fund is simply payable by way of the provision of monetary amounts and there is no provision for an additional gain to the taxpayer for this extraordinary guarantee which, in the case of some banks, may need to be called upon. Subsequent to the publication of the scheme, the Minister altered the terms in order that the banks will not be obliged to support each other in the first instance. The calls will be on the State guarantee provided on the basis of taxpayers' money. The amendment will clarify the position in respect of the fund, which could otherwise be used to gain a political advantage by the parties in government.

See this speech in context