Since the House met last week, the banking situation has deteriorated. We have had the publication of the PricewaterhouseCoopers report, albeit a truncated version, and Anglo Irish Bank's end-of-year results. Around the country, there is grave concern because it is difficult to get a grasp of the full range of the issues involved.

This morning the Garda fraud squad was sent into the headquarters of Anglo Irish Bank, which is now State-owned. This sends out its own message. I am not going to be confrontational with the Taoiseach on what others consider to be petty points. This is, however, about the credibility of the country's financial institutions. This morning's Garda actions, which Deputy Charles Flanagan called for on several occasions, send out their own message.

I will put three simple questions to the Taoiseach. First, what new information has come to his attention since the nationalisation of Anglo Irish Bank which has triggered the sending in of the Garda? Second, has a direct instruction been given to all personnel, particularly senior personnel, in the now State-owned Anglo Irish Bank to co-operate fully with the ongoing investigation? Finally, arising from this morning's actions, how does the Government propose to rectify Ireland's international financial credibility with the international markets ?

As the House is aware from news reports, this morning the Garda Bureau of Fraud Investigation was involved in an investigative operation in Anglo Irish Bank under the direction of the Director of Corporate Enforcement. Any such investigation is a matter for the Garda Síochána and the Office of the Director of Corporate Enforcement; the Government does not intervene in such investigations.

The following information has been made available by the Office of the Director of Corporate Enforcement, ODCE, in respect of the operation. A Garda officer seconded to the ODCE obtained a search warrant from a judge of the District Court yesterday. This warrant was executed today in accordance with the powers given to the director under section 20 of the Companies Act 1990, as amended. The search was led by Garda officers who are seconded to the ODCE. They were assisted by other officers attached to the Garda Bureau of Fraud Investigation and by ODCE staff. The purpose of a search under section 20 is to acquire books, documents and other materials which may provide evidence of or relating to one or more suspected offences under the Companies Acts. For operational reasons, the director will not be disclosing the suspected offence or offences in question, the premises searched or the name of the company to which the search relates. The director will be making no comment on the matter at this stage.

I have consistently made clear that the proper statutory bodies were investigating what occurred at Anglo Irish Bank and that the Government would do nothing to prejudice subsequent possible criminal or civil proceedings. We must allow this investigation. In that context, I do not wish to say anything which might prejudice future civil or criminal actions. It is important to stress that customer deposits are fully covered by the guarantee. When the bank was nationalised, it was made clear that it would continue to be run as a going concern. All Members have an obligation to aware of the damage that inaccurate and inflammatory statements or speculation can do to the levels of confidence shown in Ireland by international financial institutions.

The issues which arose during the due diligence process and which were referred to the Director of Corporate Enforcement are being investigated by him. It is the view of the chairman, board and management of Anglo Irish Bank that there should be full co-operation with the officers who have the statutory and independent authority to deal with this matter.

The signal which needs to be sent out is that this matter is being investigated by the requisite authorities and that it is being pursued; that any suggestions to the contrary last week or at any other time are without foundation; and that there is a necessity to ensure we proceed with the reform of regulatory structures in order to instil public confidence. The Minister for Finance has indicated that he intends to bring proposals in that regard before the Government in the near future. This will be extremely beneficial in ensuring that people understand that it is the view of everyone inside and outside the House that we should have a reputable and properly functioning system. That latter will ensure that the principle of accountability will apply and that, if appropriate, the full rigours of the law will be applied.

I thank the Taoiseach for his reply. Obviously, the Director of Corporate Enforcement is dealing with this matter in the context of possible infringements of the Companies Acts. The Fine Gael Party has a different view in respect of the investigation being carried out at Anglo Irish Bank and suggests that it should be done under the stewardship of the Director of Corporate Enforcement as distinct from the regulatory authority, which was part of the problem in the first instance.

The situation that has arisen has dealt another hammer blow to the credit worthiness of Ireland Inc. As the Taoiseach is aware, the markets do not actually care who owns this bank as long as credit worthiness is restored to our financial institutions. In that context, I differ from him in the sense that I am of the view that Anglo Irish Bank should have been wound down over a period, in an orderly fashion, as opposed to being allowed to operate as a going concern.

The world is running out of patience with Ireland Inc. As the Head of Government, the Taoiseach is in a position to take decisive action in order to attempt to rectify this problem before someone else rectifies it for us. We must start on the long, slow and painful path away from the economic precipice on which we now stand. The Taoiseach referred previously to bipartisanship, national consensus on issues and the offering of support in the national interest. These are sentiments with which anyone can agree. From my perspective, the message which must immediately be sent out to the international markets is that the Government is prepared to take decisive action and to look to the future in a way that will engender confidence among those who operate in those markets.

The difficulty which arises is that when people hear about the HSE, spin doctors and everything else, they become angry. Fine Gael has tabled a Private Members' motion for this evening in which are listed nine points which were carefully drawn up and which are constructive, progressive and realistic. Each in its turn will deal with an aspect of restoring credibility to Irish financial institutions. The points to which I refer relate mainly to the need to change the regulatory system, to replace the senior management and executives of both major banks and the regulatory authority, to examine the way in which top executives are remunerated — we suggest that a cap of €250,000 be imposed — and the possibility of employing the good bank-bad bank concept, which Fine Gael has been advocating for some time. These are among a number of issues in respect of which the Taoiseach could provide support in a bipartisan fashion.

In my view, and that of my party, the adoption of the nine points put forward in the motion will send out a signal to the international community to the effect that the Government is changing direction, is taking decisive action and is putting in place a structure that will restore the credibility of and trust and confidence in the Irish financial institutions. In light of the Taoiseach's views on bipartisanship, support in the national interest and support for Ireland Inc. — and given the fact that I recognise the gravity of the economic situation we face and am aware that the world is running out of patience — is he prepared to accept the proposals laid down in Fine Gael's Private Members' motion? Those proposals will be important in assisting, in part, with restoring the sense of credibility and trust that is vital to the future of our country. Is the Taoiseach, in the spirit of bipartisanship, prepared to accept suggestions that are constructive and progressive?

In respect of the financial crisis, in recent months the Government outlined a strategy based on the need to supply a guarantee in respect of the banking system, such was the imminent threat upon it last September. This did not meet with unanimous approval in the House. However, it met with some approval and the Deputy's party supported that aspect of our strategy.

We then proceeded to ensure due diligence and a recapitalisation policy statement was issued. We took the time with which we were provided by the guarantee to assess the best way forward in respect of a recapitalisation policy. In that context, we were obliged to undertake discussions with the main banks concerned. In a statement issued before Christmas, we outlined our preparedness to make significant funds available for that purpose. On the basis of a proper risk assessment and detailed advice provided by experts employed by the Government for that purpose, we obtained the best assessment as to what the Government's commitment should be in the context of a recapitalisation of the two main banks. We proceeded to recapitalise these banks, which did not meet with unanimous approval in the House. I understand that when the relevant vote was taken, the recapitalisation was opposed by all of the Government's opponents in the House.

Having carried out the recapitalisation, we stated that we would proceed to try to assess the best way to manage the risks that will emerge in the coming years. We made it clear that this is our next step and the Minister for Finance, his advisers and the authorities under the aegis of his Department are undertaking work in this regard.

In the interim, many statements were made in the House which were inaccurate and incorrect and which made a difficult situation even worse. We are in a battle for this country's economic stability and nobody should underestimate the scale of the challenge we face.

In respect of our management of this financial issue, while it is open to all Members of the House to give their views and scrutinise Government action, as recently as last week accusations were being thrown about here that there was some ulterior motive behind Government action in this matter. This is totally contrary to the facts and not a shred of evidence has been provided since then to substantiate these accusations, particularly the political charges that were made. These were most unfortunate and do not go without notice elsewhere.

The Government was too slow. It should have acted six months ago.

The bottom line is that we are seeking to pursue this matter in the best way possible and in the national interest for the purpose of trying to restore financial stability to the system as soon as possible. As I stated, this is an ongoing challenge.

On the economic issue, the Government has proceeded through its budgets and through raising more than €2 billion from taxation in 2009. Further savings were made in 2008, with full year effect in 2009 and, since then, based on a framework agreed with the social partners, we have announced the need for a €2 billion saving to be identified immediately in the interest of maintaining and upholding credibility with international markets regarding the determination of the Government to seek to start to address the serious problem which has emerged in the public finances. This did not meet with agreement in the House and continues to be opposed.

From the Government's point of view, we would welcome any support that would be forthcoming from the Opposition. However, in respect of every issue we have put to the House, not one has met with unanimous approval.

Nor should it.

That is a matter for the Opposition parties to determine and decide upon in their own democratic way.

Furthermore, in respect of meeting the continuing challenge that faces the country in establishing and maintaining stability in our financial system and the real economic challenge that faces the country in the months and years ahead, it is important to continue to try to do this in a way that brings a national effort behind any proposals that are brought forward.

As I stated, a framework has been agreed with the social partners. There is much, for example, in what the Irish Congress of Trade Unions has had to say, which is consistent with my approach and that of the Government. It is an agenda which closely reflects the framework agreed between the social partners on 28 January and the Government's views that an integrated national response to the current crisis is not only desirable but essential if there is to be sufficient impetus and a coherence of approach to meet the scale of the challenge. I remain of that view.

At present, however, there is not a basis for the resumption of formal negotiations. Obviously, the week in which we enact the legislation providing for the imposition of a pension levy is not the most conducive week for such discussions. However, I believe everyone who is interested in the betterment of the country and meeting the challenge we face must try to ascertain if there is a way to return to these issues in a comprehensive fashion, although not specifically on the policy initiatives we have taken, which are necessary in the circumstances in which we find ourselves. I remain open to discuss with the social partners the real challenges facing us in the months and years ahead. In the meantime, the Government, as it has demonstrated, will continue to take whatever decisions we believe are necessary in the circumstances. We look forward to those efforts.