Larry Butler (Fianna Fail)

I welcome the Minister of State to the House. As speakers noted, this is an important scheme which takes the first step. It is important to strike a balance to ensure the legislation is flexible and will allow the banking system to function. This is what the scheme achieves. As I indicated, however, it is only a first step.

Other countries, both in Europe and globally, adopted different approaches to addressing problems in their banking systems. The Irish approach is more cautious than those taken elsewhere. The Government examined the global position, which has not improved in recent weeks. Pumping money into the system does not necessarily solve problems in financial institutions. The marketplace is precarious because investors are involved and bank stocks are virtually on the floor.

As someone with some knowledge of investment, I believe the decline in market values is probably overdone and is due to the failure of banks to come clean on their loan books.