Is there anecdotal evidence of outflows of finance from financial institutions regulated in this country but that are not part of the guarantee to the six financial institutions in respect of the Bill going through? I am aware of the complications about this, but will the Tánaiste say whether the Government is aware of this from the Central Bank or the Financial Regulator. I recognise the complications about relevance to other jurisdictions and not having to take on activities there.

As the Minister for Finance indicated last night at the end of the Second Stage discussion, through the legislation we will discuss later this morning and this afternoon, there will be facilitation in the event of any competitive distortions. The Financial Regulator is monitoring the balance of flows between institutions and his job is to maintain a stable banking environment. Any further decisions will be made on the basis of that information to the Minister for Finance.

Yesterday I made the point that this is about a stable banking system, not protection of management. A number of financial institutions licensed and incorporated in Ireland and whose liquidity, capital and solvency are regulated in Ireland are not part of the guarantee system. Has the Government considered a mechanism for ring-fencing the Irish activities of those financial institutions to keep a competitive playing pitch for financial activities? Is the Government in a position to do that on the basis of all those activities being regulated here but a number of those institutions not being part of the guarantee to the six financial institutions mentioned in the Bill? What does the Government propose to do about that?

All the institutions are included in the €100,000 guarantee. We are aware of concerns being expressed. On the basis of financial instability or if there was a difficulty with the balance of flow between institutions, the Financial Regulator will inform the Minister for Finance. The Minister has indicated in the broad parts of the legislation available to him that on the basis of that information there is an instrument available to him to allow him to deal with that. It would be appropriate for that to be teased out in the context of the discussions we will have here later this morning. There is enablement in the legislation in the event of those issues having to be addressed.