Brian Cowen (Laois-Offaly, Fianna Fail)

Deputy Gilmore will be aware that the Minister for Finance, Deputy Lenihan, has indicated that in part of his Supplementary Budget Statement he will make some comments with regard to these matters that are important for the future of our economy. The motivation of the Government is to ensure we get the Irish banking system to serve the people within its core franchise of providing lending capacity to families, personal borrowers and to Irish businesses. This will enable it to protect as many jobs as possible.

As the Deputy is aware, there is an EU set of guidelines on dealing with what are called "impaired assets" and we will be working within that framework. Other countries have indicated already what they intend to do in this regard. The decisions we have taken thus far in respect of Irish banking and the State guarantee were absolutely necessary at the time in order to avoid any systemic failure of the Irish banking system and all the chaotic consequences that would have arisen from that. The recapitalisation policy was a prudent one on behalf of taxpayers and was taken after due diligence.

The question of how we manage risk in the future in respect of impaired assets and banks is an important issue for the people. Our motivation in this regard is to ensure that the problems which are causing the reduction of credit into the real economy, with all the accompanying effects, must be addressed in a very determined, sustained and strategic way. It is on that basis that the Minister will make some comments on this matter during the course of his Supplementary Budget Statement.

The Government has made its decision not simply on the basis of any individual report but based on the advice of the Central Bank and the National Treasury Management Agency. The latter has done a great deal of work in this area and has built up a very fine reputation over many years with regard to treasury management issues in this country, the management and reduction of our debt and in dealing with our public finances in that respect. These were the advisors, along with the Department of Finance. The official advice we received is built around the consensus of opinion that has developed with regard to deciding which is the best way forward. It is on that basis that the Minister, Deputy Lenihan, will make some comments.

As the Deputy is aware, these matters concern some very commercially sensitive, market-sensitive issues and therefore I do not believe at this remove that it is possible to publish such reports. However, the decisions that will be taken by Government can be explained and brought to the House and any legislative changes that will be necessary on foot of those decisions will provide an opportunity for further debate.

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