Brian Lenihan Jnr (Dublin West, Fianna Fail)

That is an extremely pertinent question. As previously indicated, it is intended, subject to the commercial discussions which must take place, to confer the guarantee upon the six domestic banks. Section 6(1), which is the core provision in respect of guarantees, states that the Minister may provide financial support. Section 6(4), which relates to the guarantee clause, states "Financial support may be provided under this section in a form or manner determined by the Minister". The Minister for Finance will not obliged to provide a guarantee under this section. He or she has discretion and may provide a guarantee. That is the crucial point. If an Irish credit institution were taken over or became a subsidiary of a company from another jurisdiction, the Minister would not be obliged to continue to provide a guarantee.

It is intended, in the implementation of this legislation, to draw up the scheme that will be laid before the Houses and then complete commercial agreements with particular institutions. Within such agreements, the interests of the State in respect of the revocation of any guarantee will be fully protected.