Brendan Howlin (Wexford, Labour)

Let me explain. It was estimated at that stage that the recapitalisation would be of the order of €35 billion. The final amount is considerably less than that because of the actions of Government, in particular, the deleveraging of non-core assets of the banks.

As regards purchase of Irish Life, the Deputy will be aware that it had been intended to use the sale of the insurance arm of Irish Life to recapitalise the banking element of Irish Life & Permanent although not because of the intrinsic value of Irish Life, which has maintained a substantial intrinsic value. However, it was not possible, because of external trouble in regard to the euro, to conclude that sale. The State has acquired that asset at fair value, the proceeds of which will be used to recapitalise Irish life & Permanent. The value of the insurance division, which is a valuable asset for the State to hold, will be fully realised for the benefit of the taxpayer in due course.

See this speech in context