Enda Kenny (Mayo, Fine Gael)

A man of Deputy Ross's capabilities and intelligence will understand that the policies are not the same. The Government has not made a mistake; it has made a decision, namely, to reduce the number of dysfunctional banks and to create two pillar banks which will be the bulwark in terms of where we go from here. This differs from the position taken by the last Government. It is a decision which brings clarity and certainty to the Irish banking sector. It is a matter of fact that commentators must comment. The Lex column is not the sovereign Government of this country. Unfortunately, because of the constraints placed on the people of this country as a result of the IMF-EU deal, the options available to the new Government were limited. However, one must make decisions. The Government made a decision which will ensure clarity and certainty in the banking sector. In discussions with the European Central Bank, it provided certainty in respect of ongoing liquidity into the Irish banks. That is important. I accept it is not the end result in terms of where we want to be, which is, in a position to say goodbye to the IMF in terms of the deal and to return to the bond markets, thus regaining control of our economic destiny. Given the obstacles in our way, difficult decisions will have to be taken into the future. We must rebuild the nature of our relationship with many of our European counterparts and we are working to do so. The space now provided allows for this to happen.

Deputy Ross will be aware that there have been significant contributions from subordinated bondholders. The point was made at least week's press conference that there is a clear difference between senior bondholders in Anglo Irish Bank and Irish Nationwide Building Society and those in the pillar banks, namely, Allied Irish Banks and Bank of Ireland. The Government was clear in terms of its pronouncement in this regard.

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