Eamon Gilmore (Dún Laoghaire, Labour)

On 29 September last, the Government introduced in the House what became known as the bank guarantee scheme. According to the legislation introduced on that date, the scheme was to last for two years. The Credit Institutions (Financial Support) Bill that was passed stipulated the guarantee would end on 29 September 2010. It stated explicitly that it would not continue beyond that date.

Last Friday week the Government published a Bill called the Financial Measures (Miscellaneous Provisions) Bill, which provides for a number of matters, including the transfer of university pensions to the National Pensions Reserve Fund, a number of technical amendments to the Central Bank Act, a number of provisions affecting insurance legislation and legislation governing the use of credit cards. Buried away in Part 2 of Schedule 2 of the Bill is an amendment to the legislation that introduced the bank guarantee scheme. That amendment lifts the two-year time limit on the scheme and gives power to the Minister for Finance to extend the guarantee by ministerial order for any period.

The Labour Party considered that the bank guarantee scheme introduced by the Government was a disaster for the taxpayer. As we have seen, this has been borne out in that every time the banks have a problem, the taxpayers must put their hands in their pocket. Some €4 billion has been allocated for Anglo Irish Bank and €3.5 billion each for the two main banks.

Regardless of what one thinks about the bank guarantee scheme, extending it indefinitely and giving the Minister for Finance the power to do so by ministerial order is a major step for us to be asked to take. It should at least be the subject of thorough and rigorous debate in the House. However, not only has the Government introduced this far-reaching measure in an underhand way and slipped it into the Schedule of a rather technical looking Bill, it also wants to take all Stages of the Bill tonight. It is proposed to guillotine Second Stage at 7 p.m. and it is proposed to take Committee and Remaining Stages between approximately 8.40 p.m. and 10 p.m. The provision to which I refer will probably not be reached at all by the House for examination.

For how long does the Government intend to extend the guarantee scheme beyond 29 September 2010, as proposed in the legislation to be taken this evening? Why is there such a rush to deal with all Stages in one sitting this evening? If the guarantee as it stands does not expire until 29 September 2010, we have approximately 14 months in which to consider the matter. Will the Taoiseach agree to withdraw Part 2 of Schedule 2 of the Financial Measures (Miscellaneous Provisions) Bill - it is straight out of Sir Humphrey - and allow the House to have a proper, considered debate on what everybody will agree is a substantial legislative measure to be brought before the House?

See this speech in context