Anglo Irish Bank recapitalisation
Enda Kenny asks whether the Budget includes €6 billion for Anglo Irish Bank and urges its orderly wind-down to protect taxpayers. The Taoiseach says further recapitalisation is not included and that the Government’s priority is limiting taxpayer exposure.
Budget day is always a big day for the Minister for Finance. This is not the first budget, the Minister, Deputy Brian Lenihan, has presented but it may well be the last. We would not be in this position if the Government, of which Deputy Cowen has been Taoiseach for the past number of years, had managed the economic affairs of the people competently. Of all the budgets I have awaited, this has received the most hype. Borrowings for 2009 of €26 billion include a figure of €4 billion for Anglo Irish Bank. This is real money from taxpayers' pockets. The big idea in this budget from both Brians seems to be to create jobs by reducing the price of drink. Following the cuts that will take place in social welfare, children's allowance and for low-paid, vulnerable people, do the figures to be presented today include up to €6 billion for the further recapitalisation of Anglo Irish Bank? By itself, this would wipe out the impact of all the cuts presented by the Minister for Finance. Do the figures for 2010 include this figure of up to €6 billion of real taxpayers' money, wiping out the impact of the cuts to be announced this afternoon?
Comment on this
Recapitalisation arises as a result of the nationalisation of Anglo Irish Bank in that specific case and because of the investments taxpayers have made in other covered institutions. Those issues are separate from the Budget Statement to be made by the Minister for Finance today. We need a functioning banking system in order to have a proper economy. That is a continuing challenge for the Government. The real issue for the country today is to take the necessary steps to confirm, at home and abroad, our capacity to manage our affairs and take the decisions necessary to reduce costs in our economy.
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I disagree fundamentally with the Taoiseach. There are problems with the public finances, the banking crisis and the recession.
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For God's sake, the Ceann Comhairle should get real.
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That is not the business of the Ceann Comhairle.
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Deputies should take it easy; there is more to come.
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Deputy Kenny is anticipating questions that can legitimately be raised in the debate on the budget.
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There are great expectations and we will still surprise the Opposition Deputies.
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This is Leaders' Questions and I have not asked my second question. I disagree fundamentally with the Taoiseach. This is not a separate issue. The moneys pumped into Anglo Irish Bank, including €4 billion this year, are real moneys from real taxpayers' pockets. We cannot keep it separate in another entity, as if it is not real money affecting real people. My question concerns the figures to be presented this afternoon by the Minister for Finance. Do these figures include €6 billion to bail out Anglo Irish Bank?
This Government has talked tough about a lot of people. This morning, a Minister of State was asked on local radio if it is fair to cut children's allowance, but there was no answer. We know it is not and if the Taoiseach had followed the Fine Gael view, we would not have to.
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The Government has talked tough about everybody, but why has the Government not acted tough with the banks?
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In conjunction with the European Commission and the European Central Bank, can we take it that the Government will wind down Anglo Irish Bank in an orderly fashion and save the taxpayers €3 billion to €4 billion out of their pockets? My question concerns whether the figure is included in the figures to be presented this afternoon. In view of the likelihood of pouring more money down the black hole, will the Government wind down Anglo Irish Bank in conjunction with the European Commission and European Central Bank rather than having real people pay real money out of their hard-earned taxes for those who have swanned around the world——
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——as if they own the place, as if they can do what they like immune from any law or any action from Government?
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They played golf on €500,000 a year.
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There is a cosy cartel within banking.
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I have made the point to Deputy Kenny that I will not speculate on any further recapitalisation required for any bank. Clearly, any future recapitalisation that may be necessary is not incorporated in the figures for today's budget.
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The Minister of State, Deputy Dick Roche, should keep his head down. The Dublin Docklands Development Authority did not do him any favours.
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What about a figure of €2.3 billion?
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The Minister of State, Deputy Roche, is on the way out.
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Someone should muzzle the Minister of State, Deputy Roche.
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The Minister of State should watch it or he will find himself a further row back.
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The question relates to investment. Investment and recapitalisation do not have an effect on the Exchequer borrowing requirement. This is covered by EU rules in respect of national accounts. Regarding what must be done to avoid exposure to the taxpayer, this is the primary objective of the Government in respect of any investment made in any banks.
Comment on this
The Taoiseach will write any cheques so.