Beverley Flynn (Mayo, Fianna Fail)

That regulation is currently being improved by the Government. The key message must be protection of the taxpayer. Since the introduction of the bank guarantee last September, protection of the taxpayer has been of paramount importance to the Government. The fee for the guarantee will amount to €1 billion over two years. The dividend on the preference shares will be €560 million in a full year to the National Pensions Reserve Fund. If these preference shares have to be redeemed eventually, they will be redeemed at 125% of their value.

In addition, the Government's recapitalisation proposals impose additional requirements on the banks as to how they deal with their customers. When I spoke on Second Stage of the Finance Bill earlier today, I highlighted the importance of protecting mortgage holders. I want to see banks making this an absolute priority. People with one residence and one mortgage must not lose their homes. When NAMA is operational, I expect that banks will be required to make that a priority.

We must free up credit to get business moving and make sure taxpayers get a good deal and a good return on their investment. The measures introduced by the Government can achieve this. I ask the Opposition to support those measures. The objectives of Government and Opposition are the same. We are all trying to reach the same end, which is to free up money. We may have different ideas as to how that might be best achieved, but working together in the national interest we can arrive at a proposal which will work for the Irish people. We live in extraordinary times and terrible economic circumstances.

The banking crisis has led to a reduction in our overseas development aid. Could the banks not make up the shortfall in our overseas aid budget? In that way the recapitalisation of the banks might become more acceptable to the Irish people. That would be very important.

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