Liam Twomey (Fine Gael)

I move amendment No. 2:

In page 3, before section 2, to insert the following new section:

2.—Any funding to any financial institution to which funds are paid out of the National Pensions Reserve Fund under this Act in excess of a cumulative total of €7 Billion shall not be made save pursuant to a resolution of both Houses of the Oireachtas.

To answer Senator Burke's question, the Government has taken a hands off approach, not only to the bank it owns but also to those it proposes to recapitalise. Perhaps this is the reason the Minister of State believes a conflict of interest does not arise.

I ask the Minister of State to accept my amendment. The Government proposes to recapitalise the banks using €7 billion of taxpayers' money. It is amazing how things can change. In September 2007, when the House sat through the night to discuss the legislation to guarantee all bank deposits, I tabled an amendment in the early hours proposing that the Government should not invest more than €10 billion of taxpayers' money in recapitalising or nationalising the Irish banks. The Minister for Finance stated he would be discommoded if the taxpayer had to pay more than €10 billion to save the banking sector. This figure has been exceeded and it is approaching €20 billion.

The Government must seek the approval of the Houses if it plans to spend more than €7 billion recapitalising the banks. Any such proposal must be discussed in both Houses. The Minister should not be in a position to issue resolutions to provide more taxpayers' money to the banks when the full extent of their debts are finally exposed. While I am not an expert on the precise exposure of the banks to bad debt, basic common sense would suggest it is probably well in excess of €20 billion and probably closer to €50 billion.

Given that they are technically insolvent, I hope the banks will be able to survive the crisis and, with the assistance of taxpayers, trade themselves into a position of greater strength. They are being allowed to trade into a position of solvency at the expense of the taxpayer. For this reason, the Minister of State should accept some of the amendments and show respect to both Houses and the Opposition.