POLITICAL REACTION:THE OPPOSITION parties expressed concerns last night about aspects of the bank guarantee scheme, particularly the level of charges the banks will be asked to pay.

Fine Gael deputy leader and finance spokesman Richard Bruton welcomed the measure but added that it was crucial that the taxpayer was protected effectively.

"The charges are surprisingly low, being based on an estimate of the higher cost of borrowing for the State rather than the reduced cost to the banks.

"The mandate of the public interest director on each bank's board is far from clear and they are not publicly accountable," he said.

Mr Bruton added that there was no explicit provision for ensuring that credit was extended to enterprises and families in Ireland so that the wheels of the economy could keep turning on the back of the guarantee.

"There is no public parliamentary scrutiny envisaged to oversee the operation of the scheme on behalf of the taxpayer.

"There is no explanation as to why subordinated debt holders who knew the risks and got very high returns in exchange were included in the scheme," he said.

Labour Party finance spokeswoman Joan Burton said the scheme raised as many questions as it answered.

"The scheme as published does not put a monetary amount on the charge to banks for the scheme," she said.

"The scheme gives no indication that any senior bankers will be resigning, or will be removed - as was the case in the UK. Nor is there any apology forthcoming from anyone in the banking sector," she said.

Ms Burton added that the details of the scheme were also vague, at best, on the question of how salaries would be limited for top executives.

There would be a committee but no cap on bankers' salaries, she said. "Nor does the scheme appear to indicate how the banks are to be recapitalised."

She promised that "the Labour Party will be scrutinising the scheme on the run-in to the Dáil debate on Friday and will be demanding answers from the Minister on these and other issues."

Bankers and brokers welcomed the scheme's publication last night.

The Irish Bankers' Federation (IBF), which represents leading Irish lenders such as AIB and Bank of Ireland, as well as the other domestic and international banks, said that the scheme recognises the importance of financial services to consumers, business and the wider economy.

The federation's statement added that all governments had to act together and singly to restore order to the financial markets and to renew confidence in the banking system and the global economy.

The Professional Insurance Brokers' Association (Piba) said that the scheme was welcome, but added that it could have delivered more for taxpayers.

Piba chief executive Diarmuid Kelly argued that the Government would have been able to deliver better results on the guarantee scheme if it had taken a stake in the banks.

"There is a risk that, rather than a vibrant banking sector, we may get an overly conservative or limping system that may not serve the reasonable needs of enterprise and consumers," he warned.