Kieran O'Donnell (Limerick East, Fine Gael)

State assets could be sold and the money realised provided to the NPRF. In that case, taxpayers' money would be involved but there would be no accountability. We are not interfering with the Minister's role in dealing with the banks but the amendments provide for accountability to the Houses of the Oireachtas on the use of taxpayers' money. The Minister stated earlier he cannot direct the NPRF on its investment. However, under this legislation, the Minister will direct the fund's administrators to invest €7 billion in the two main banks, which is completely different. The issue is whether they can achieve liquidity on the international markets. To do so, their core tier 1 capital levels must be well above the minimum, as the minimum is irrelevant in the current environment on the international markets.

Where a 4% core tier 1 capital ratio was the norm, investors are now seeking a ratio of more than 8%. The Minister directed a number of weeks ago that €3.5 billion be invested in both AIB and Bank of Ireland. They were then able to go to the markets and state their liquidity ratios for core tier 1 capital had increased.

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