Enda Kenny (Mayo, Fine Gael)

I am sure the Taoiseach is aware of the reaction of people, particularly the young, to the situation. This is one of the major institutions centrally involved in the financial and economic debacle in which we find ourselves. It is one of the major institutions in respect of which Mr. Trichet today referred to countries losing their reputations and credibility.

The Government effectively has 25% control of the bank and the Minister for Finance has stated that we are deeply embedded in the banking sector. Clearly, an insider is being appointed to the job. Minister after Minister has been discussing prescription charges of 50 cent and cutting child benefit and every other allowance of which one could think while Allied Irish Banks has proposed, not on a whim, to the Department of Finance that a person be appointed as the bank's managing director with a salary grossly in excess of the Government's guideline. This breaches every ethical guideline of good corporate governance and does nothing for our country's reputation or the attempt to sort out the banking situation. The Government is being told that it has no moral authority, has lost credibility, is losing integrity and that the bank will do what it likes.

The Government gave the bank €3.4 billion in taxpayers' money, guaranteed all of its liabilities, will buy its loan book for €24 billion and controls 25% of it. Everyone else is being forced to take pain on all levels, but a proposal was dropped into the Department of Finance by the bank at 7.30 p.m. and discussed by the Cabinet this morning. Now, there is neither a managing director nor credibility of Government.

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