Brian Lenihan Jnr (Dublin West, Fianna Fail)

It is not my intention or that of the Government to expend €10 billion on the Irish banking system. I would be exceptionally concerned at that reference in the legislation. Our immediate task is to establish a guarantee scheme, which will result in an accrual of funds or value to the Exchequer or State in some shape or form. It will be done through the use of the Irish sovereign name.

When we go beyond that, it is true to state that the legislation contains provisions that allow the Minister to deal with emergencies. I envisage that emergencies could be categorised into two forms. The first would be a temporary emergency, a short-term shortage of liquidity that could be repaired and the State could be reimbursed. A more dangerous position would arise if a bank became permanently illiquid and unable to discharge its obligations and liabilities. The Bill contains ample options whether by way of taking shares, effective control or management. The legislation provides for a wide panoply of power for the State to act in such circumstances, but I would prefer not to explore those contingencies because they are not envisaged in the legislation. Rather, we envisage a positive outcome. Contingencies must be planned for close to them, but I am satisfied that there is ample power to deal with the contingency mentioned by the Senator.

The obsession with considering the assets and liabilities of banks is dangerous in the context of the Bill because that matter is not what the legislation is about. To realise all of the assets to which I referred on Second Stage, one would need to fire-sale the securities for the loans held by every Irish bank. It is an inconceivable chain of events, one that no Government could let happen.