Shane Ross (Dublin South, Independent)

Last night, the Government supported moves by Bank of Ireland, EBS and Irish Life & Permanent to burn the junior bondholders in those three financial institutions. Everybody in this House will welcome that decision. It was a fine decision and it seems to be a break with previous decisions by all Governments that in order to sort out the banking crisis, the small people, pensioners, shareholders and taxpayers should pay. I wonder if the Government would consider applying part of the solution to this problem, that is, a debt-equity swap, which incidentally was first suggested from these benches, also to senior bondholders. What should be realised by the Government, if it has courage, is that there are untouchable elements in the banks and financial institutions which have not yet been affected. There is a mass of fat still sitting in the financial institutions which can be tackled. I am thinking particularly of the senior bondholders, who, incidentally, were expecting to be burnt and are standing in wonder at the generosity of the Government.

I am thinking also of the pensions industry, about which I asked a question the other day. The pensions industry is loaded with fat. About two weeks ago the Taoiseach, very helpfully, said he would refer that matter to the Minister for Finance. It is the industry that should pay, not the pensioners putting money into pension funds. Will the Taoiseach tell me what the result has been of his referring the matter to the Minister for Finance? The Finance (No. 2) Bill still contains measures to raise money from the pensioners through the 0.6% levy. Is there now hope that we will get the money from the fat of the industry rather than those paying in who can ill afford it?

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