LABOUR LEADER Eamon Gilmore challenged Taoiseach Brian Cowen to say if the €22 billion invested in Anglo Irish Bank would ever be recovered by the taxpayer.

Mr Gilmore said: “I was interested yesterday in the proposals put forward by Ibec and the construction council which was aimed at getting back to work the 40,000 construction workers who have lost their jobs and the package of proposals put forward jointly, which mounts to €5.5 billion per annum in infrastructural works.

“Twenty-two billion euro would keep that €5.5 billion going for four years with all of the jobs that would be provided.

“Twenty-two billion euro would build the metro. On top of that it would build the 400 schools that are in the Department of Education’s list.

“It would build the hospitals and there would be money left over to do a lot more than that.’’ Mr Gilmore said that €22 billion was the amount of taxpayers’ money paid into Anglo Irish Bank.

He said the bank’s chief executive said the “lion’s share’’ of the money would not be seen again.

“Is the chief executive of Anglo Irish Bank right or wrong?’’ Mr Gilmore said. “Is it the case that the lion’s share of the money will, as he put it, be never seen again? Is the money gone?’’

Mr Cowen replied: “The first fact relating to your question is the fact that, of course, recapitalisation of banks, including the provision of monies to that bank has arisen because there is inadequate shareholder funds to take the losses in those banks.

“The second point is that the banking inquiry review confirms that the bank was of systematic importance and were we not to support it, as suggested by you at the time, it would have seen us run out of money in the banking system within days.’’ Mr Gilmore accused Mr Cowen of talking his way around a simple question.

“The chief executive of Anglo Irish Bank came before a Dáil committee last week and said in very simple and stark terms that the lion’s share of the €22 billion in taxpayers’ money that has gone into Anglo Irish Bank will, as he put it, never be seen again,” he continued.

“What I want to know, and what people in the country want to know . . . you are the Taoiseach . . . is that man right or wrong? Is our money gone? Is the €22 billion gone into Anglo Irish Bank lost and gone forever? Don’t give me an argument. Don’t give me whether you were, or I, was right or wrong, or where Deputy Enda Kenny was wrong, or where everybody else was wrong apart from yourself.

“Just give us an answer to that question: is the money gone ?’’

Mr Cowen replied: “It is clear that in relation to where shareholders’ funds are not sufficient to meet losses and where the taxpayers have to come in to fill those losses . . . those are the losses which are taken on by the taxpayer.

“It is clear in relation to that bank, that that is the situation. It is also clear that the choice was not €22 billion or zero, as you would have it believe . . . it is not as smart-alecky as that.

“This is too serious an issue. What it is about is making sure that we reduce the burden on the taxpayer to the greatest extent we possibly can.’’