Brian Lenihan Jnr (Dublin West, Fianna Fail)

The Deputy has asked many questions. With regard to the nature of the regulations, the Deputy's subsequent questions are more interesting, if I may say so, because I will be repeating myself. I indicated to Deputy Burton that there are two elements to the regulations, one deals with the actual appeal mechanism and side by side with that is a sectoral analysis of each bank's performance. We cannot rest easy on the idea of an appeal mechanism where lenders may believe they are discouraged from making an example of their financial institution. We have to continue with detailed sectoral analysis of the position in each bank as it affects different sectors of industry and so that I can take further measures, if such measures are required.

The Deputy will recall that I made that point to him on Committee Stage, that it was important we did not just have one shot at this subject but rather two and three shots if required.

On the second point regarding loan guarantee schemes, there is an examination under way of the proposal to introduce a loan guarantee scheme at the Department of Enterprise, Trade and Employment. Any scheme developed has to assist business while at the same time assisting the interests of the taxpayer. One cannot introduce a loan guarantee scheme which in effect permits financial institutions to dump bad loans on the taxpayer.

On the wider proposal referred to by the Deputy, the national recovery bank, I have been quango-shooting this bank since last October and there is constant reference to this French comparison. What France has in existence is no different from what we already have in existence. The French equivalent of the National Treasury Management Agency raises funds directly for the French banking system. Were we to copy that system in this jurisdiction, it would have to be done on a non-discriminatory basis and not just for a particular financial institution one's party might wish to establish. The NTMA would then have to raise the funds for the entire banking system.

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