On 29 September last, the Government introduced in the House what became known as the bank guarantee scheme. According to the legislation introduced on that date, the scheme was to last for two years. The Credit Institutions (Financial Support) Bill that was passed stipulated the guarantee would end on 29 September 2010. It stated explicitly that it would not continue beyond that date.

Last Friday week the Government published a Bill called the Financial Measures (Miscellaneous Provisions) Bill, which provides for a number of matters, including the transfer of university pensions to the National Pensions Reserve Fund, a number of technical amendments to the Central Bank Act, a number of provisions affecting insurance legislation and legislation governing the use of credit cards. Buried away in Part 2 of Schedule 2 of the Bill is an amendment to the legislation that introduced the bank guarantee scheme. That amendment lifts the two-year time limit on the scheme and gives power to the Minister for Finance to extend the guarantee by ministerial order for any period.

The Labour Party considered that the bank guarantee scheme introduced by the Government was a disaster for the taxpayer. As we have seen, this has been borne out in that every time the banks have a problem, the taxpayers must put their hands in their pocket. Some €4 billion has been allocated for Anglo Irish Bank and €3.5 billion each for the two main banks.

Regardless of what one thinks about the bank guarantee scheme, extending it indefinitely and giving the Minister for Finance the power to do so by ministerial order is a major step for us to be asked to take. It should at least be the subject of thorough and rigorous debate in the House. However, not only has the Government introduced this far-reaching measure in an underhand way and slipped it into the Schedule of a rather technical looking Bill, it also wants to take all Stages of the Bill tonight. It is proposed to guillotine Second Stage at 7 p.m. and it is proposed to take Committee and Remaining Stages between approximately 8.40 p.m. and 10 p.m. The provision to which I refer will probably not be reached at all by the House for examination.

For how long does the Government intend to extend the guarantee scheme beyond 29 September 2010, as proposed in the legislation to be taken this evening? Why is there such a rush to deal with all Stages in one sitting this evening? If the guarantee as it stands does not expire until 29 September 2010, we have approximately 14 months in which to consider the matter. Will the Taoiseach agree to withdraw Part 2 of Schedule 2 of the Financial Measures (Miscellaneous Provisions) Bill — it is straight out of Sir Humphrey — and allow the House to have a proper, considered debate on what everybody will agree is a substantial legislative measure to be brought before the House?

The provisions to which Deputy Gilmore refers amending the bank guarantee scheme legislation, the Credit Institutions Financial Support Act 2008, in order to facilitate long-term debt issuance by the banks of up to five years, in accordance with the findings of a review of the guarantee, was signalled in the supplementary budget as far back as 7 April. There is no question of something unanticipated or unannounced suddenly arriving in the second Schedule of a Bill. This is being done to ensure that Irish banks have access to this longer-term funding in line with the mainstream approach in the European Union. It will contribute significantly to supporting the funding needs of the banks and to securing their continued stability.

It is true, as the Deputy stated, that the Irish Government was the first to bring forward a bank guarantee scheme. Many governments since have followed that example as part of their response to the need to provide financial stability at a time of unprecedented turbulence in the international banking system. There have been other and further measures such as the recapitalisation of the banks and the National Asset Management Agency Bill which is also being prepared.

This Bill is designed to ensure that Irish banks will have access to the issuance of eligible debt securities for the same length of time as other banks. We set out our bank debt guarantee for two years. In line with developments at EU level and the review in respect of the guarantee scheme it would put Ireland at a disadvantage were we to suggest that our bank guarantee was to extend only to September 2010 when debt securities of up to five years beyond that date are available to others. We would extend it to ensure that Irish banks can compete on a level playing pitch for those debt securities.

Yes, the Minister for Finance did indicate in the documentation supplied with the Budget Statement, rather than in the Budget Statement, that there was a proposal to extend the coverage of some categories of debt for five years. With all due respect to the Taoiseach, the way to do that is for the Minister for Finance to come in and explain that to the House,put a legislative measure before the House and provide for it.

We have two problems with this legislation, first, what is being proposed in the Bill is not a provision for five years or for particular types of debt — it is an open-ended provision, stating explicitly that the power is being given to the Minister for Finance to do this by way of order. There is no mention of five years, or of particular categories of debt. The Minister for Finance is asking the House effectively to open the bank guarantee scheme and leave the manner in which it will be exercised to his discretion in future. We have given one blank cheque to the banking system, now the Government is effectively asking the House to provide the system with an undated blank cheque.

Second, what is the rush? As the Taoiseach said, the Minister for Finance signalled something along these lines on 7 April. This is 23 June. Why does the Taoiseach want it done and dusted by 10 p.m. tonight? What is the big hurry? Why can this not be removed? I do not want to have the debate here but I want provision for the House to debate this measure. This is a fairly major departure from the commitment given when the original bank guarantee scheme was introduced. It was brought in for two years and we were told it would end on 29 September 2010 and that it would not be extended beyond that date. That is in the legislation. There may well be a case for changing that for particular categories of debt but it should be done here openly. It should be brought in with an upfront statement of the Government's proposal, the Bill and the conditions attached thereto, debated and decided. The Government is not doing that. What it is doing is underhand. It is slipping in the provision as a Schedule to a Bill, at a point in the Bill where it will not be debated, or will be debated only tangentially, because a guillotine is to be imposed. There is, however, a solution. The Minister could withdraw the Schedule from the Bill and introduce it separately. We can all co-operate with the handling of it and the taking of it. The Taoiseach has not explained why there is such a rush to have it all over and done with by 10 p.m. tonight. At the very least a matter of such seriousness, with so much taxpayers' money riding on it, requires a bit more debate now than being put in as a Schedule to a Bill which is guillotined and put through in one sitting on what is after all a half-day sitting on a Tuesday.

There is a need to deal with this matter because we have limited our bank debt guarantee to September 2010. Five year money securities are becoming available on money markets that we cannot take because we cannot guarantee the banks beyond September 2010. There are other banks in other jurisdictions that can do that because they did not impose the prudent two year restriction that we imposed on ourselves at the time. There are loans that we could take up for five years if we apply the bank guarantee. The best way of ensuring stability in the banking system is to ensure that it has access to funds. Other banks in other jurisdictions are able to tender for these funds because they can apply a bank guarantee to them that we cannot do because we have legislation which restricts it to September 2010.

What has the Government been doing since 7 April? The Minister has had since 7 April to do this.

Under section 6(5) of the Credit Institutions Financial Support Act 2006 we will introduce a statutory instrument to that effect for the future. The current time restriction of September 2010 has to be lifted from the Statute Book to allow us to apply for the five year loan security money in a way that we cannot do now. Legally we can provide a loan guarantee only until September 2010. This amendment to the legislation provides us with the means of ensuring that we compete on a level playing pitch with other financial institutions.