Pearse Doherty (Donegal South West, Sinn Fein)

In light of conversations in recent weeks and the Government's claims that it is arguing for burden sharing which would result in some senior bondholders taking a hit on their investments in private banks, does the Minister agree that it would be sensible and prudent for the Government not to guarantee new debt in private banks when the bank guarantee scheme is extended at the end of June? As he indicated, he, his Department and the Taoiseach do not know when this debt will become unsustainable. Given that is the case, why would the State guarantee future debt in private banks when such debt could become unsustainable and significant new debt is being added to the burden on the State?

Has the extension of the bank guarantee scheme been on the agenda in the ongoing dialogue on the pact for the euro? Has the Government, as part of this dialogue, signalled that it will extend the bank guarantee as part of the specific commitments Ireland must make over the 12 month period? I understand the objective of the meeting to be held this weekend is to lay out a 12 month programme. Is the extension of the bank guarantee scheme among the commitments the State will make in that regard?

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