Brian Lenihan Jnr (Dublin West, Fianna Fail)

I operated a one-man business for a substantial period of my existence so I am familiar with the factors to which the Deputy refers. Subordinated debt clearly ranks behind that relating to other creditors in an insolvency. That has always been recognised. The terms of these instruments often define their precise priority in the event of insolvency. That is the whole point. The Attorney General's advice is grounded in a recognition of that.

Apart altogether from the legal considerations, there are also policy considerations that come into play in respect of why the State should not and cannot countenance any suggestion of coercion or default with regard to senior debt.

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