Eugene Regan (Fine Gael)

I note a draft of the bank guarantee scheme has been sent to Brussels for approval. It is curious that it has been sent to Brussels for approval before it comes to the Oireachtas. I appreciate this matter was debated in the other Chamber yesterday. However, in last week's debate, Fine Gael pointed out some issues in the scheme and the legislation, concerning State aid rules, which were taken on board by the Government. Were this draft scheme put to the Oireachtas for scrutiny there may have been further improvements.

The reduction in interest rates by the European Central Bank is linked to the capitalisation of Irish banks and the discussion we have had in recent days. Some days ago I said the banks had certain options for recapitalisation. They can source new funds, reduce or not pay out dividends and can increase margins. The statements made clearly show the banks are endeavouring to recapitalise by increasing their margins at the expense of Irish consumers, mortgage holders and taxpayers.

In the context of the State giving a guarantee to the banks, that is unacceptable. The Minister for Finance should make a statement on that and insist that these increases which, in normal times, would have been automatically passed on to consumers, are passed on.

There is a wonderful photograph of the Minister for the Environment, Heritage and Local Government, Deputy Gormley, in The Irish Times today at the publication of the Environmental Protection Agency report to which Senator Fitzgerald referred. I do not know what he is so happy about because this is a damning report on the state of the environment, from water quality——