Brian Cowen (Laois-Offaly, Fianna Fail)

Even if one considers the initial Northern Rock guarantee, one will note it had to be widened by the British Government a short time after its introduction because it did not, I presume, provide sufficient credibility for the markets to ensure the run on the bank would stop.

Hindsight is great and people do not want to talk about the subordinated debt, which was 3.3% of the total. The Labour Party is 100% wrong because there is an argument about that. There was a reason one would include subordinated debt, and it has been set out ad nauseum to finance committees and Opposition spokespersons and Government Deputies, all of whom quite rightly asked questions on the possibility of a default being established and there being a cross-over between dated subordinated debt and senior debt. That is a technical issue. However, it is absolutely clear that there was an objective necessity to introduce a guarantee for the Irish banking sector because of the systemic nature of the problem we faced, and that if it had not been introduced, there would have been disorderly closure and failure of seismic proportions in our economy.

Those are the facts. One can argue the matter any way one likes but must acknowledge those are the facts. Therefore, I reject utterly the contention to the contrary in the interest of the good name of the people who support my organisation and who enter this House as democrats and make the right decisions by their best lights, and the people who support us in government. We made that decision for those reasons and for no others. No game of golf, telephone call or dinner will change that. To suggest otherwise is to circulate a patently absurd conspiracy theory which is perpetuating the problem and doing a greater disservice to politics in this country than any actions this Government honourably took in a crisis.

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