Enda Kenny (Mayo, Fine Gael)

I wish to ask the Taoiseach about the latest debacle to erupt in banking circles. I understand from comments made today by the Minister for Finance, Deputy Brian Lenihan, that yesterday evening a proposal from Allied Irish Banks was dropped into the Department of Finance. This proposal was obviously not dropped in on a whim. It was for the appointment of a person as managing director of AIB, on a salary of €633,000.

As I understand it, the State has 25% control in AIB. The Government gave it €3.5 billion in preference shares, intends to acquire the loan book for an assumed figure of €24 billion and has guaranteed all its liabilities. I understand the Cabinet discussed this matter this morning. The Taoiseach is well aware of the importance of our country's reputation, the credibility of our banking system and the integrity that goes along with that. Was there any contact between Allied Irish Banks and the Minister for Finance or his Department concerning this matter? Does the Taoiseach support the proposed appointment, given that this person is an insider, has been on the board since 2003, has been central to many of the lending practices of Allied Irish Banks and will not do anything to enhance the reputation of the Irish banking system in general? What is the Taoiseach's view, arising from this latest debacle in banking circles? Effectively, the Government has been given another major snub, following what happened with Bank of Ireland.

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