Paddy Burke (Fine Gael)

I support Senator Twomey's amendment. The funding allocated to the banks should be capped at €7 billion and if the banks require further funding, the Government should seek the approval of the Oireachtas.

Senator Ross raised an important question. Is there any point in borrowing €1 billion or €1.5 billion annually to be allocated to the managed fund? If, as Senator Ross stated, this practice were to cease, our borrowing requirement would immediately reduce.

Last September, when the House debated legislation on the financial institutions, I expressed to the Minister for Finance my view that he was taking the wrong option and should instead have taken a stake in the banks. Six months later, we have adopted a course of action which places future pensions at risk. How will the banks repay the funds they receive from the National Pensions Reserve Fund? Will 8% of the €7 billion be paid annually or in monthly instalments? If the banks cannot afford to repay the fund, will the €7 billion go down the swanny?