Brian Lenihan Jnr (Dublin West, Fianna Fail)

There are two distinct issues, namely, the reform of the regulatory structures and the Central Bank, and this precise section. They are not connected. The reason for this precise section is that the Central Bank holds the general account from which a payment would be required to be made in the event of this guarantee being called upon. The view of my advisors is that the appropriate agency to designate to make the payment is, therefore, the Central Bank since under current law and practice it holds the account.

Naturally and understandably Deputy Burton has asked wider questions on the regulatory system and the role of the Central Bank and the regulatory authority. The Government has considered these issues and a statement will issue in due course. The crucial issue is the recruitment of a new regulator and that process is well under way but we may have to be patient because it is vital we secure the right person for the job.

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