Mary Lou McDonald (Dublin Central, Sinn Fein)

----- to assert his clout in these matters. I would have thought that, as Taoiseach and Head of Government, he has sufficient clout to call to account whatever Department or statutory agency he so wishes. He behaves as though he is a spectator in these matters.

The Financial Regulator must be tearing his hair out at this stage. Yesterday he stated that banks need to do more than offer interest only repayment periods. That appears to be the only solution on offer. The Taoiseach seems to be happy to allow the regulator to flap about but he is reluctant to intervene in a decisive way as Head of Government. Last July the Government recapitalised the pillar banks to the tune of €17 billion. These banks have the capacity to absorb some of the losses from distressed mortgages but he is not prepared to put pressure on them.

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