Bernard Durkan (Kildare North, Fine Gael)
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Question 92: To ask the Minister for Finance if it is intended to take steps to combat issues contributing to or likely to contribute to financial or economic instability in the future; and if he will make a statement on the matter. [31772/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The swift actions by international central banks, including the European Central Bank, to provide major injections of liquidity have contributed to greater stability in financial markets internationally, though they continue to remain subject to significant uncertainties. Agreement on the extensive and far-reaching plans announced recently by the US authorities should help to stabilise financial markets and rebuild confidence in the international financial system.

Ireland as a small, highly open economy with a significant financial sector closely integrated in the international financial system cannot be immune from these developments. The Government has, therefore, been very active in supporting public confidence in the safety of deposits and the stability of the financial system overall. The Government has decided to increase the statutory limit for the deposit guarantee scheme for banks and building societies from €20,000 to €100,000 per depositor per institution and that the cover will apply to 100% of each individual's deposit up to the €100,000 limit. This guarantee level, which will also apply to credit union savers, is now among the highest in the EU.

The Government is committed to the stability of our financial system, so that money placed with an Irish credit institution would not be at risk. The Irish Government wants to protect the whole financial system and secure its stability. In terms of measures to promote economic stability, I would highlight the decisive action taken by the Government to underpin confidence throughout the wider economy by bringing forward the Budget. The Government also helped secure a draft National Pay Agreement which will help promote stability, certainty and industrial peace.