Brian Lenihan Jnr (Dublin West, Fianna Fail)

In light of our current fiscal and budgetary position, it would be useful to have this sum at my disposal. I am not sure it would be any more useful to have it at my disposal at the end of 2010. The position is that the sums are credited to a designated account maintained by the Central Bank and Financial Services Authority of Ireland as a reserve for any payments to be made under the scheme. The sum remaining in the account on 30 September 2010 will then be paid to the Exchequer. In the financial year of 2010, it will become a benefit to the Exchequer. I am not sure there is any great difference, in fiscal terms, in allocating approximately €500 million to the Central Fund in 2009 and a similar or slightly greater sum in 2010 or paying it in one lump sum.

The previous Dáil was dissolved in 2007. In the normal course of events, I would not anticipate a dissolution of this Dáil until 2012. In such circumstances, I fail to see the relevance of the amendment.

Deputy Burton made a serious point with regard to the guarantee being called upon. There has been no suggestion that the guarantee will be called upon. The only circumstances in which it could be called upon would be where there was a run of deposits on Irish financial institutions. There has been no evidence whatever of the latter since the guarantee was provided. With the important task of capitalisation under way, the guarantee has given us time to assess the actual deficiencies in the loan books of the banks. The figure identified by the Government in respect of that capitalisation will give us the opportunity to reduce the exposure of the State on foot of the guarantee by ensuring that the capital base of the financial institutions is sound.

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