Michael Ahern (Cork East, Fianna Fail)

It has been said numerous times by the Minister and the Taoiseach that deposits of up to €100,000 are covered under the deposit guarantee scheme and that amounts higher than this are covered under the eligible liabilities guarantee scheme. It is important to get that message out to individual depositors.

I have heard a number of Opposition spokespersons say that what the Government did in 2008 was totally wrong. It is easy to look back a couple of years and say that such and such should not have been done, but in the heat of the night the Government had to make a decision to ensure there would not be a massive run on the banking institutions, and advice was given by Merrill Lynch that there should be a guarantee scheme. That was supported subsequently by the Governor of the Central Bank, Professor Honohan, in his report to the Joint Committee on Finance and the Public Service, although he raised a question about the fact that the guarantee covered subordinated debt. Deputy McGrath mentioned that subordinated debt accounted for more than 3% of the total liability guaranteed at the time, but I think there was about €5 billion or €6 billion in Anglo Irish Bank, of which Anglo Irish Bank bought some back at a profit. There is now about €3 billion, and I understand negotiations are going on in that regard. I am sure it will be bought back with a substantial haircut. If the guarantee had not been established at the time, we would now be worse off than we are today.

Members of the Labour Party have been saying we should have let Anglo Irish Bank go to the wall, but this would have cost an estimated €70 billion to €75 billion.

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