Enda Kenny (Mayo, Fine Gael)

On 30 March, the Minister for Finance, in speaking in the House on the financial crisis, said that the banks of this country had played fast and loose with the economic interests of Ireland. He went on to say that senior people in banking had made appalling lending decisions which, in his words, the taxpayer would have to pay for years to come. We now have the revelations from the Irish Nationwide Building Society and the comment by the new chief executive that its reckless lending practices were outrageous, resulting in losses of €2.5 billion last year and 120% mortgages given out, with no guarantees sought in many cases. This appalling behaviour and light touch regulation was overseen when the Taoiseach, Deputy Brian Cowen, was Minister for Finance.

Bank of Ireland published a report last week. This bank is a covered institution which has been the recipient of €3.5 billion from the Irish taxpayer to date, and the transfer to NAMA will be of the order of €12 billion in respect of loans. In the report last week, this bank agreed, proposed and approved a top-up pension payment of €1.9 million for the chief executive. The chief executive in this case is not a new entity; he was an insider who came from Ulster Bank and who led the charge for a vigorous property development process within Bank of Ireland.

The Minister for Finance has said senior people in banking circles in Ireland made appalling lending decisions. I pointed out to the Taoiseach in the House previously that, under section 50 of the guarantee scheme, where this scheme is being brought into disrepute, the Minister for Finance may require certain obligations of the scheme to be adhered to and he may specify in writing to the covered institution in question what those obligations might be. Hundreds of thousands of people in our country are out of work and many thousands, as we speak, are scrabbling to put the few cent together to meet the increased rate in variable mortgage repayments, yet we have a situation where Bank of Ireland, a covered institution, has approved a €1.9 million top-up in pension for its chief executive and the Taoiseach and his Government stand idly by, despite the fact the Minister for Finance said that senior bankers had made appalling lending decisions.

At a time of economic crisis for many thousands of our people, is the Taoiseach happy that Bank of Ireland approves a €1.9 million top-up for its chief executive? Is he prepared to invoke the section of the guarantee scheme which gives the Minister for Finance authority from Government and in law to intervene, specify in writing and have this decision reversed? Is he happy to sit idly by in the knowledge that he can intervene and can have this reversed on the instruction of the Minister for Finance?

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