Brian Cowen (Laois-Offaly, Fianna Fail)

As I said on Monday, there was an ECOFIN meeting last night and there will be discussions following that today which will start tomorrow. That will go on until such time as they will be able to bring forward proposals over the coming days. I am not going to put a timeframe on that but they are urgent and focused and will be intensive. Again, I cannot give an outcome as to the timeframe but it is an urgent issue with which we are dealing.

In the meantime, from the point of the view of the public I want to make clear that while the technical discussions take place there is no issue regarding their position with the banks. The banks are fully supported by the European Central Bank. All our deposits are guaranteed. There is no problem whatsoever while the discussions are ongoing and people need to know that as a matter of fact. People need to be reassured on that front, as a practical and pragmatic matter.

The objective is as set out in the statement. We are seeking to ensure that we provide the necessary support to address market risk, especially with regard to the banking sector, in the context of the four year budgetary plan and the upcoming budget. Most countries in the developed world have had to provide bank guarantees and interventions in order to ensure that the financial system was stabilised. The initiatives we took have been supported by the European Union and approved by it. In some cases its prior or subsequent approval was required.

Many people went ahead with bank guarantees in the aftermath of what we had to do. It is important that people understand that the idea that there is any suggestion of bad faith in the Government is not true. I was told this last Friday; when I was told I was negotiating for a bailout I said we certainly are not, and we have made no such application. Other Ministers confirmed that throughout the weekend.

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