Dan Boyle (Green Party)

The uncertainty that has accompanied the global economy since we sat all night in this Chamber two weeks ago has not abated to any great extent. It could be argued that the uncertainty has moved away from the financial sector and into the global economy. That we have taken time to put together the scheme and that it is being discussed in both Houses of the Oireachtas should be of benefit as we try to tackle this problem, in the Irish economy at least.

Since we passed this legislation, the central principle of a guarantee has been adopted by the European Central Bank and the eurozone countries. Measures taken in other countries, such as that taken by the United States in passing legislation to purchase toxic debt, and the British Government's approach to intervene directly in its national banks, do not appear to have had the necessary effect in terms of the strength of the financial institutions and stock exchanges. The British example, whereby one bank, the Royal Bank of Scotland, was recapitalised to the extent of £21 billion, gives the lie to the notion that our response should be immediate. Our response must be measured and taken on an institution by institution basis. This scheme is structured in such a way that we have not yet been called on to use the guarantee it affords. As and when we might be called upon to use it, the structures are in place to protect the interests of the Irish taxpayer.

Arguments have been made in respect of the actual cost of the scheme. Only €0.5 billion will accrue in each year to the State and people ask whether that is enough to meet the interests of the taxpayer. The Government and the Minister for Finance had to be conscious that our banks are dealing with a combination of factors concerning liquidity and, it must be admitted, solvency. The charge imposed must be measured in such a way that it does not affect either of those areas in the short term. I believe the balance is about right.

That said, I do not believe we should be talking merely about the two-year period of the legislation detailed in the scheme. As an Oireachtas, we should send out a clear signal that we expect those institutions to pay for a long time to come for the mess which they have got themselves into by fairly suspect practices. In the past I have called for a bank levy——