To ask the Chancellor of the Exchequer what safeguard measures have been agreed with his Irish counterpart on the removal of Financial Services Authority cover for UK Anglo-Irish bond holders; and if he will make a statement. (266139)

UK depositors (including retail bond holders) with Anglo Irish Bank are protected by the Irish Deposit Guarantee Scheme up to €100,000 (c£90,000), and by an additional temporary, unlimited, Irish Sovereign Guarantee until 2010. The Deposit Guarantee limit in Ireland was raised from €20,000 to €100,000 per depositor per institution on 21 September 2008. As this is higher than the protection offered by the UK deposit protection scheme (the Financial Services Compensation Scheme FSCS), Anglo Irish Bank has withdrawn from ‘topping-up' its deposit protection to the level applicable in the UK. Under the old topping up arrangements, the FSCS would compensate retail depositors for deposits between €20,000 and £35,000 (£50,000 from 8 October 2008).