Ciarán Lynch (Cork South Central, Labour)

The banks have liabilities that are four to five times their asset base. That is a busted flush. There is no basis to the contention suggested last night that the 24 month accommodation will create any risk of unfavourable perceptions in the markets about Irish banking lending.

Ultimately, the Government amendment is about being more concerned about its friends in the banks than the plight of distressed borrowers. The Labour Party has been accused by the Government of talking up the problem. The Government is in denial of the reality for 35,000 households which are currently in mortgage arrears and is in fact trying to talk down the problem. The Government mantra tonight is the same as on the night of the bank guarantee - the fundamentals are sound, let us not worry about it, all the measures are in place.

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