Brian Cowen (Laois-Offaly, Fianna Fail)

In respect of the financial crisis, in recent months the Government outlined a strategy based on the need to supply a guarantee in respect of the banking system, such was the imminent threat upon it last September. This did not meet with unanimous approval in the House. However, it met with some approval and the Deputy's party supported that aspect of our strategy.

We then proceeded to ensure due diligence and a recapitalisation policy statement was issued. We took the time with which we were provided by the guarantee to assess the best way forward in respect of a recapitalisation policy. In that context, we were obliged to undertake discussions with the main banks concerned. In a statement issued before Christmas, we outlined our preparedness to make significant funds available for that purpose. On the basis of a proper risk assessment and detailed advice provided by experts employed by the Government for that purpose, we obtained the best assessment as to what the Government's commitment should be in the context of a recapitalisation of the two main banks. We proceeded to recapitalise these banks, which did not meet with unanimous approval in the House. I understand that when the relevant vote was taken, the recapitalisation was opposed by all of the Government's opponents in the House.

Having carried out the recapitalisation, we stated that we would proceed to try to assess the best way to manage the risks that will emerge in the coming years. We made it clear that this is our next step and the Minister for Finance, his advisers and the authorities under the aegis of his Department are undertaking work in this regard.

In the interim, many statements were made in the House which were inaccurate and incorrect and which made a difficult situation even worse. We are in a battle for this country's economic stability and nobody should underestimate the scale of the challenge we face.

In respect of our management of this financial issue, while it is open to all Members of the House to give their views and scrutinise Government action, as recently as last week accusations were being thrown about here that there was some ulterior motive behind Government action in this matter. This is totally contrary to the facts and not a shred of evidence has been provided since then to substantiate these accusations, particularly the political charges that were made. These were most unfortunate and do not go without notice elsewhere.

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