Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

It was clear when the possibility was raised in the first instance and subsequently that any retroactive recapitalisation of the banks would require an exchange of shares in Irish banks for any money given through the ESM. One need not do much study to know that the potential for acquiring a great deal of capital through the sale of bank shares on the markets is now a more valuable option than going through a reluctant ESM, which requires unanimity among governors - in other words, finance Ministers - across the eurozone.

As to the evaluation, I spoke formally with the people involved in the ESM and asked about the potential. They pointed out that an application could be made but that it would require unanimous assent. Given my soundings over the year, I do not believe that we would have got virtually any support. Circumstances have changed dramatically and we are now the fastest growing economy of the 28 in the EU. We are certainly the fastest growing in the eurozone and are projected by the Commission to be the fastest growing again next year. We have the better option of going to the market when the time is right to recover the money that the taxpayer invested in the banks.

Within the Department, in particular given the preparations for an IPO of AIB, much evaluation work has been done. That advice is available to me.

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