Brian Cowen (Laois-Offaly, Fianna Fail)

None of us in the House is in a position to say that, while those decisions were necessary, they have not proved sufficient. There are abnormal market conditions and we are out of the markets.

We must establish a means by which we can return to the markets at some stage.

As Members are aware, in the context of the ongoing discussions on Basel lll, the question of the further capitalisation of banks has been mentioned. The Financial Regulator came forward with a very robust capital ratio of 8% in respect of the banks. That ratio is certainly as robust as any in Europe. The Financial Regulator also brought forward a very transparent process regarding the segregation of assets and stated that, in his view, the losses in the banks were of the order of €35 billion. That analysis remains as valid today as it was then. The issue that arises relates to stress testing the banks again to see if there is any further action we can take to convince the markets that we are on the right track. If further capitalisation of the banking sector is required to assist this process, it can be provided.

We must build on the existing policy framework. It is not the case that the European Union or the relevant institutions are approaching Ireland and asking that we adopt the policies of the Irish Labour Party. The position is quite the contrary. They are stating that we should build on the policies of the Government.

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