Enda Kenny: Government will get back every euro put into banks

The Government expects to get back every euro the Irish taxpayer put into the banks since it came into office, Taoiseach Enda Kenny has told the Dáil.

“That is what negotiation is about, that is what a growing economy is about,’’ he added.

Rounding on Sinn Féin leader Gerry Adams, he accused him of "economic ballyhoo'' and said his party did not want what the Government was seeking to achieve.

"You want AIB retained as a nationalised bank, owned by the State,'' the Taoiseach added.

Mr Kenny said the Republic's deficit would be below three per cent this year because of prudent and competent management. The deficit in Northern Ireland, which Mr Adams knew well, was 33 per cent.

Earlier, Mr Adams said Mr Kenny should support calls for a European debt conference. Claiming Mr Kenny had put words in his mouth, Mr Adams said he wanted the separation of sovereign debt from banking debt. “Private banking debt should not be paid; that is not our debt,’’ he added.

The debt conference, said Mr Adams, would provide a European-wide forum for negotiating to relieve the burden from citizens of the debt forced upon them.

He said that in Davos, Mr Kenny had explained the debt by remarking "Paddy went mad''. When the economic crash came, the €62 billion in bank loans was in the hands of 190 people, while half of the loan book in Anglo Irish Bank was held by just 20 individuals, Mr Adams added.

“You forced Paddy and Patricia to pay for this private bankers’ greed,’’ he said.