Taoiseach Leo Varadkar has said the cap of half a million euro a year on bankers' pay should remain in place.

He said that the Government had recovered all the money given by the people of Ireland to bail out Bank of Ireland and he said he did believe that all the money would be recovered from AIB too.

However, he said that it would not be possible to recover the money put in Anglo Irish Bank and Nationwide because they were "dead banks".

The Taoiseach told the Dáil that he didn't think anyone would know for sure if the decision to bail out the banks was the right one or the wrong one.

He said that it had been done to protect the deposits and savings of the Irish people.

He was responding to Labour's Brendan Howlin, who said the bank guarantee was a point of no return when the debt of the Irish banks was put on the backs of the taxpayers.

Deputy Howlin said the C&AG's report said there will be a deficit of €45 million.

He asked the Taoiseach if he believed that all the money put into the banks by the Irish people should be recouped.

He also asked the Taoiseach if the levies should be maintained on the banks until it is recouped.