This is a bad day for the 760 employees of Bank of Scotland (Ireland). It is a bad day for the bank's 300,000 holders of variable mortgages. If Bank of Scotland leaves Ireland, it will take with it competition and choice. We cannot return to the old days of the cosy cartel that operated between Bank of Ireland and Allied Irish Banks.

Eighteen months ago, the Taoiseach's Government promised a restructuring of the Irish banking system. In respect of these 300,000 holders of variable mortgages and others, what does his Government now propose to do to introduce choice and competition to the banking sector?

Yesterday I recorded our regret at the announcement of the loss of these jobs in Bank of Scotland (Ireland). I made the point that I had been assured that all customers of the bank would be looked after and would not be disadvantaged by the changes. Bank of Scotland (Ireland) will continue to have a presence in Ireland, albeit with the loss of 760 employees now gainfully employed who will no longer be part of the operation after July. It is also important to point out that the bank indicated it sees itself continuing as an independent entity.

In the context of having a viable and competitive banking system, the establishment of NAMA was to ensure that banks are freed of stressed assets and can access cash to lend on to businesses and households. That will be achieved by replacing property related loans with Irish Government bonds which will strengthen the balance sheets of the banks and increase their capacity to access liquidity in the financial markets and, if necessary, through euro system liquidity operations, making them better able to lend and support businesses and the Irish economy.

The contentions from the Opposition have varied from time to time but——

Never mind the Opposition. You are in power.

——it always has been my view that if we are to have proper credit access into the economy and a functioning banking system the NAMA operation has to be, and will be, proceeded with.

That is a bad day made even worse by the response of the Taoiseach. What effort is the Government making now to introduce competition and choice for consumers in this country? Did the Government reject any offer, if such were made, by Bank of Scotland (Ireland) to be part of the third banking force? Based on allegations now in circulation, has the Taoiseach had any indications that there might be thousands of additional bank job losses because of other international banks pulling out of this country? These are serious matters and they require the immediate attention of Government.

When does the Government propose to publish its paper on restructuring the banks?

These matters have the full attention of Government at all times albeit not always with the support of Members of the House. That is a matter for debate in respect of all the initiatives we have brought forward, all of which have been supported internationally.

The next phase of restructuring the banking system relates to the valuation of the distressed assets and their removal to the NAMA operation. Arising from that is the recapitalisation of the banks affected by the removal of the distressed assets. As the Deputy will know, that is under way at present. The Minister intends to take a comprehensive approach to all of that and in the coming weeks and months the Government intends to proceed on the basis that the current valuation method used for the NAMA operation will be completed.