Ms Madeleine Reid:

I suppose there is one concern in the response to the points made by both Deputies. I agree with the concerns expressed by Deputy Brophy about the possible implications of the proposal. While a directive normally sets general principles and gives member states the discretion about how they arrive there, the difficulty is that this directive does not take that very general approach. It is setting quite prescriptive conditions at times and while the mechanisms we have in place offer protection, it is all about how one strikes the exact balance between protecting the situation of debtors and protecting the situation of creditors. Some of the very prescriptive conditions that are set out in the directive might affect the way that balance is struck in Irish law currently. It may be reworded as discussions go on but in some situations that balance is struck in a way which refers to specific cultural, social and economic factors within an individual member state. That is why we would be concerned about some of the possible implications of some of the prescriptive conditions which would be set for the conditions in which a court can decide that a restructure should go ahead, for example. It seems to change the balance that exists in our legislation at the moment in a way which could create difficulties.