Kieran O'Donnell (Limerick East, Fine Gael)

Yes. They are the Taoiseach's words. That is €1.5 billion which will come out of vital services across the spectrum for the citizens who are paying taxes. The problem with the banking system is that it has become about the process of NAMA, but no one considers the consequences. The haircuts are so out of control that the taxpayers have to fill a big hole in the banks and the banks are more concerned with building their balance sheets.

The Minister is wrong about Anglo Irish Bank. He referred to NAMA and said it was about development loans. NAMA was about going into institutions to take away the toxic loans in order that they could then lend. The Minister admitted earlier that Anglo Irish Bank was never going to lend, rather it was a bank that he was going to shrink down in some form. It makes no sense to transfer the balance of the remaining loans in Anglo Irish Bank into NAMA. Bank of Scotland has its NAMA. Anglo Irish Bank has its NAMA. The problem is that we have a NAMA stuck in every corner which will all be competing with each other. NAMA was supposed to bring about certainty but that has not happened.

Does the Minister believe the €48 billion of taxpayers' money which has gone into the banks has resolved the banking situation? Does he believe that, given the two year timeframe he had, that the banking system in Ireland is now functioning? Anglo Irish Bank which is a dead bank, Irish Nationwide in its current incarnation is dead, Bank of Ireland is functioning and providing better credit than AIB which I accept - we know that from people on the ground - but is not functioning the way it should and AIB is the largest institution.

There is a point which is often overlooked. A lot of people are working in the front line in the banks that are getting a very difficult time. The Minister took over AIB today. Many of its directors have been there since 2007 and before. I am not being personal about the individuals and the board of AIB. The Minister needs to make a statement that there will be a new board in AIB, along with a CEO and chair. That direction needs to be sent to the international markets. It is in all of our interests that the bond yields for Irish sovereign debt should come down. It is also in the interests of the banks. I did not get an opportunity to ask the Minister a question about the funding requirements of AIB and Bank of Ireland. In his speech earlier today, the Minister suggested they have reached their end-of-year targets, more or less:

In addition the cliff in the banks' refinancing requirements during the month of September, which had been a source of concern to the markets, has passed and the amount of term bank debt maturing over the remainder of this year and next year is quite limited.

I would like to know the exact extent of the remaining requirements.

This is a dreadful day for the ordinary person out there who is looking in. It will have major consequences for small and medium sized enterprises and business people. Will the sheer level of debt be the Minister's legacy? In 20 or 50 years time, will future generations of Opposition Deputies come into the Chamber to talk about the fact that the element of the national debt relating to the recapitalisation of the banks has just been paid off? I hope that will not be the case. We have to get the real economy moving. If we are to have growth, credit has to flow. Regardless of whether I agree with what the Minister has done, it is fair to say credit is not flowing. That has to be addressed. A number of matters, including the whole issue of the guarantee scheme, need to be considered in that context. I ask the Minister not to dismiss the proposal to establish a national recovery bank. The principle behind the proposal is correct. It is similar to the Labour Party's proposal to establish a strategic investment bank. I hope the Minister will shed light on this matter. This process should be about getting clarity, rather than bankrupting future generations. Today's announcement is a manifestation of the Government's failure on banking policy.

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