Brian Lenihan Jnr (Dublin West, Fianna Fail)

First, that is a completely inaccurate characterisation of the process. As I understand the position, we are talking about regulatory capital, which, in the first instance, is a matter for the Financial Regulator, not for Professor Honohan. However, the regulator works closely with the Governor of the Central Bank and also consults with me and discusses these matters.

Ultimately, if our regulatory system is not to belong to the world of crony capitalism, the regulator must be manifestly seen to make an independent and objective call on these issues and cannot be subject to the kind of political pressures that Deputy Burton was deploying a few moments ago. That is the purpose of having an independent regulatory system.

One of the functions of an independent regulatory system is to prescribe an appropriate level of regulatory capital for the institutions. The implications of prescribing such a level are a matter for the Government, and for this House to which the Government is accountable, but the issue of what is an appropriate level of regulatory capital is a matter for the regulatory system.

Deputy Burton cannot have it both ways. If she wants us to have a robust, good international reputation, then we must have a regulator who can act in a good, robust independent way. The regulator must not be seen to be subject to endless political pressures. That is the one thing one cannot have the regulator doing, and that is essential in the context of any announcement we will make in this area. That should not be a matter of bipartisanship or tripartisanship. That is surely a lesson we should have learned already at this stage of the banking crisis. That is the position on that particular issue.

Deputy Burton also raised the question of the review the Government is conducting. I would be quite happy to provide the data, but the arguments made by particular Departments are part of the Government process and should be treated as such as part of the preliminary process for the making of Cabinet decisions on these matters. It is important that the necessary frankness and candour of discussion, which one wants to see in memoranda on this subject, should be present in any documentation. I appreciate the Deputy is anxious to see what figures and estimates are available in this context. I will examine what can be produced in that regard.

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