Michael Noonan (Limerick City, Fine Gael)

If one considers the situation in Irish Life & Permanent, one will see its debt-to-deposit ratio is about 280%. How can one lend 2.8 times more than one is taking in on deposits and have a normal banking system? The Deputy is right that the life division is prosperous. The reason we are doing this is that the life division is backing up an impaired banking system, and if that continues even for a short time more, it will be contaminated by the banking system. We want to cut it loose and put it on the market as a good, profitable insurance company that provides pensions. In this way we preserve the pensions and policies that are associated with Irish Life & Permanent. However, it must be severed from the impaired bank, which is dragging it down. That is the position with regard to Irish Life & Permanent.

The Deputies can object and be critical of the Government, but the fact is that the European Central Bank is keeping banking going in this country and there is no profitable bank.

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