Billy Timmins (Wicklow, Fine Gael)

If one took him at face value one would agree with him but history has shown that what he says is not accurate. Expressing confidence today does not give me confidence in the future, based on what has happened in the recent past.

The Minister said this morning that one of the conditions of the recapitalisation was that the financial institutions would outline their future loan liability. Has Allied Irish Banks, AIB, outlined its projected loan liability over the next few years? I do not think so. This morning the Minister stated that was one of the requirements but it has not happened. It should be addressed before the end of this debate.

Banks have a value at risk, VaR, policy whereby every risk they take will prove to be between 95% and 99% okay. Banks say they operate at the 99% level but very often they operate at 95%, and between that and 99%. If something goes wrong it will go seriously wrong and the banks will bail it out, which might happen every ten or 20 years. This policy must cease. There must be a system to establish how much collateral a borrower must give. We know the expression that banks mug old ladies. They can mug vulnerable people and many have got away with this. There must be a template for giving loans and returning collateral.

The interests of the bankers and the common good are misaligned. That must be corrected. What did Irish Life & Permanent get in return for the money it gave Anglo Irish Bank? What was the pay back? How much over the interbank rate did it achieve for that loan? It is important that the public know why it took such an unethical step albeit that there was no risk. What financial incentive did it get to do that? The Minister said yesterday that there were no other such transactions from the Bank of Ireland and AIB. I hope that is true. He did not read this report. If Ministers were not touring around the country, opening chip shops, take-aways and flying to Leitrim in helicopters to open off-licences they might have a little more time to read documents they should read.

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