Kieran O'Donnell (Limerick East, Fine Gael)
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Question 54: To ask the Minister for Finance if he is satisfied that under the credit institutions financial support scheme he can insure that increased liquidity will be provided by the banks to consumers and the small business sector and that the scheme charge will not be passed on to bank customers; and if he will make a statement on the matter. [38848/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The main purpose of the scheme is the provision of a guarantee to certain liabilities of covered institutions for a two year period in the interests of financial stability. The health of our financial institutions is linked to our economy as a whole. The scheme therefore includes the application of strict terms and conditions on covered institutions to ensure that the public interest, which includes the general consumer and small business sector, is paramount.

The Scheme provides that "A covered institution shall not pass on the costs of the guarantee to its customers in an unwarranted manner".

Joe Costello (Dublin Central, Labour)
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Question 55: To ask the Minister for Finance his views on reports that the European Central Bank had threatened to withdraw funds from Irish banks if the Government did not extend the guarantee scheme to cover ECB deposits; and if he will make a statement on the matter. [38842/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I assume the Deputy is referring to a recent media report on the Opinion of the European Central Bank of 15 October 2008 on a draft Credit Institutions (Financial Support) Scheme.

I would like to point out that the opinion of the ECB, which is published on the ECB website, was given in response to a request received from me on 10 October 2008. It would be utterly wrong to interpret the points set out in that opinion as a threat to withdraw funds from Irish banks. No such threat was ever received.

The simple reality is that the tone of our engagements with the European authorities — both the Commission and the ECB — has been very positive and constructive throughout this process. The Deputy will be aware that the Scheme has been approved by the European authorities.