Kieran O'Donnell (Limerick East, Fine Gael)

It is critical that the front loading by the Minister to the National Pensions Reserve Fund would be specifically for the purpose of investment into these financial institutions. Furthermore any of these institutions that receive funding should provide a quarterly report to the Houses of the Oireachtas detailing their lending to the enterprises and first-time house purchasers. We have had considerable talk about recapitalisation. Fundamentally the recapitalisation scheme is about funds flowing to small businesses and first-time house buyers. Within the recapitalisation scheme for the two banks we are talking about an increase of 10% in capacity to small businesses and 30% to first-time house buyers.

We still have no guarantee as to how the House will know whether these banks are fulfilling their obligations under the terms of the recapitalisation scheme. It is extremely important that AIB and Bank of Ireland would publish quarterly reports, provided to the Houses of the Oireachtas, detailing this increased lending. The reports should outline the people to whom they are providing it, when they are providing it, how much they are providing and whom they have turned down for applications. We need to know how many first-time house buyers' applications they have considered, the funding that has been provided and whose funding has been turned down.

The problem with the Bill, including section 6, is that the legislation is very loose once it comes into being. It will be possible to front load contributions to the National Pensions Reserve Fund. However, there is nothing there to state how it is to be used. The Government is providing €7 billion for the recapitalisation of the banks, but the Bill appears to provide the power to provide extra funding through the National Pensions Reserve Fund without discussion in the House.

Furthermore section 3 provides the power "to accept funds or assets for the benefit of the Fund from sources other than the Central Fund, if so directed by the Minister". Again, no prior approval is required by the Houses of the Oireachtas. This legislation appears to greatly benefit the Minister to enable him to recapitalise the banks at will henceforth through the use of taxpayers' money either through Exchequer funds — borrowing is probably extremely difficult in the current climate — through use of the existing assets within the National Pensions Reserve Fund by directed investment, or through selling off non-Central Fund assets. That is not democracy. This House is entitled to know what further amounts of taxpayers' money are being put into the banks. That is not too much to ask.

The Government will now seek approximately €1.5 billion in cuts from public expenditure which will affect services to the general public. Furthermore it will seek €3.5 billion in increased taxes. The Government is unwilling to discuss in the Houses of the Oireachtas the spending of further taxpayers' money. It is like making an application for an overdraft facility for €7 billion and being told that one can go to whatever limit one wants thereafter. It should not work like that and it does a disservice to the House.

The Minister for Finance has been at pains to state in recent days that he wants a spirit of co-operation and wants to work with the Opposition. We have tabled reasonable amendments in terms of controlling further expenditure, so that the Government would have to get approval of the House for any further taxpayers' money to be put into the banks. If other non-Central Fund assets are to be sold to put more money into the banks the Government should come back to the House to discuss it. Furthermore any of the front loading of contributions to the National Pensions Reserve Fund from the Exchequer, a disappointing recurring theme throughout this legislation, should be curtailed in respect of being used for the recapitalisation of the banks. I hope the Minister will take stock of what we have proposed and will come back before the House for any further recapitalisation of the banks.

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