Kieran O'Donnell (Limerick East, Fine Gael)

In any bank but particularly in Anglo Irish Bank. The resolution regime should be in place prior to that happening.

The sheer scale of investment in the bank is horrific for ordinary taxpayers. There will be a possible €53 billion, with at least €46 billion invested in the banks by the taxpayer. Three of those banks are nationalised - AIB, Anglo Irish Bank and the Irish Nationwide Building Society. The investment amounts to 25% of GDP, while the general Government deficit will be 32% of GDP. The level of investment in the banks and NAMA comes to nearly 100% of gross domestic product. The amounts involved are horrific.

The Minister had two years to resolve the issue of the banks. It was always the intention when the guarantee scheme was introduced to get credit flowing but that has not happened. Speaking simplistically, if credit was to flow to the economy, it would be a strategy for growth. At the moment businesses do not have working capital, meaning they cannot function, generate sales or buy stock. It is something which needs to be examined in a very serious way.

Furthermore, on the question of whether this process will get credit flowing, on the night when the guarantee scheme was put in place it was clear that Anglo Irish Bank was insolvent. We still do not know what actually happened during the discussion on the fateful night of 29 September when the heads of AIB and Bank of Ireland, on foot of discussions with Anglo Irish Bank, came to meet the Minister and the Taoiseach. We do not known why they decided to go against the advice of Merrill Lynch and why they specifically included lower tier 2 subordinated debt. We do not know those facts.

I note the Minister is good at quoting script when it is of benefit but he dismisses it when it is not. I also note-----

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