Dan Boyle (Green Party)

The introduction of the guarantee scheme in 2008 was immediately followed by criticisms that we would incur €400 billion of debt. We have not and we are unlikely to do so. However, the imposition of the guarantee scheme was the right thing to do and it was necessary. The continuation of the guarantee scheme is a key component of policy, mainly because other countries have adopted the same approach. The existence of guarantees in other jurisdictions, following the Irish lead, means we have an obligation to continue this guarantee. The points raised by previous speakers should be acknowledged and other legislation will be brought before the House, particularly in respect of a central banking commission, to allow a more detailed debate on the continuing sense of hubris that exists in the financial institutions. This must be tackled and was most recently seen in the contributions by the banks to the meeting of the Joint Committee on Finance and the Public Service in this House. That the scheme has been approved as EU state aid, is becoming more focused and is not open-ended meets many of the concerns about it. Far from it being a potential cost to the State, we must remember that the guarantee scheme operates on the basis that the banks pay the State for its use. That, combined with the recapitalisation of the banks, NAMA and the commitment, through taxation, if NAMA does not meet its guidelines, means the Government, through existing policy, is committed to having all debts, which the banks and other financial institutions have incurred through their incompetence, returned and restored to the State and, arguably, additional money accruing from fees and interest charges the Government has imposed through the various items of legislation.

The technical nature of extending the guarantee is something this House should follow. We should use the opportunity of the more focused changes that have been brought about on its acceptance through EU state approval, and the fact that it is more in accord with schemes that now exist in other European countries, to say that this is a measure that, hopefully, will inspire confidence and work towards the redemption - that is a key word - of Irish banks and other financial institutions.