Fine Gael’s Kieran O’Donnell seeks assurances over bank recovery plan

EU legislative proposals for a framework for the recovery and resolution of credit institutions and investment firms were scrutinised by the Oireachtas finance committee yesterday.

Fine Gael TD Kieran O’Donnell sought assurances from Department of Finance and Central Bank officials that the proposals were “bulletproof regarding the Irish taxpayer”.

Aidan Carrigan, assistant secretary at the department's financial services division, told the committee the “driving objective” of the banking union package of measures was to minimise the potential exposure of taxpayers in future.

“All of that framework is intended as package to ensure that the chances of the taxpayer being called on in future again in a similar situation are minimised,” he said.

He said in negotiations Ireland would be looking to achieve an element of mutualisation of resolution and deposit guarantee funding in return for single supervision.

Mr O’Donnell also asked how much Ireland would be required to contribute to the funding of the European Stability Mechanism.

Mr Carrigan said it was too early to say how the ESM would operate.