Brian Lenihan Jnr (Dublin West, Fianna Fail)

We are talking about five year debt. The European scheme envisages a six-month window within which the debt can be issued. That can be renewed if renewal is needed and there is EU approval. The approval is required not only for the initial scheme, but at the end of each six-month period for extension of the issuance. The rationale for this is that we want our banks to be in the same position as banks in the rest of Europe to obtain these funds if the markets relax to the extent to which they are readily available. That is a legitimate object of public policy. I have flagged our intentions in this regard in the budget. I indicated it at the different investment conferences that I addressed in Europe where it was well received because the Irish guarantee was seen as being somewhat unusual because it comes to a sudden and dramatic halt on 30 September 2010. It is important that it is confirmed.

In response to Deputy Burton's concern about particular institutions abusing this facility in the future, which is legitimate in the light of our experience, not only do we require EU approval at the end of the six-month period, but it is also subject to ministerial approval in respect of particular issues. That is the intention of the scheme. It is not a case of the Minister giving a blank cheque - but let us not mix up our financial instruments - a blank authority, to a particular institution to go out and raise money. That is not the intention in this extension of the guarantee. It is not possible to set an end date in legislation if the EU makes a six-month extension available. The EU's willingness to facilitate such an extension is contingent on world money market conditions. I am prepared, however, to examine the suggestion in Deputy Bruton's amendment to see whether in the context of the scheme it can be translated into a more definite limitation so that whatever the Oireachtas does approve will in some way have a clear sunset attached.

See this speech in context