Peter Power (Limerick East, Fianna Fail)

I would like to hear the Deputy's response to what I am saying in a moment. Fine Gael's bank would apparently obtain funds from the ECB, while the SFEF raises funds from wholesale markets not from the ECB. That is a critical difference between Fine Gael's proposal, which I suggest is a copycat model, and the reality of the French model. Fine Gael's bank would be also State-owned, whereas the SFEF is 60% owned by the French banks.

Deputy Kenny also referred to the majority state-owned bank, Credit Lyonnais. The French Government set up the bank in 1995 and the Deputy implied that the fact that bank recorded losses suggested NAMA would be wrong. This is a patently incorrect analysis of the French situation. At best, it illustrates a deep misunderstanding on the part of the Deputy and, at worst, a shallow attempt to spread fear. The French bank bought bad assets at a nominal discount with the intention of making losses while clearing up a particular situation.

Whether one agrees with Fine Gael's fundamental statement on national policy, we will stand behind our banking system and bring in a workable model to repair that system while the essential and critical flaw in Fine Gael's policy is it departs from our model and leaves us open to potentially being unable to raise money on the international financial markets. If it were introduced, AIB and Bank of Ireland would find their ability to raise money would evaporate in the morning.

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