Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The work-out of issues relating to AIB, the sale of its shares the week before last and other measures I have recently taken indicate what a landmark moment the sale of the shares was in terms of the State trying to get money back for its support of the banking system in the past.

On the financial services committee report and its suggestions on non-performing loans, it is offering four pillars in terms of the broad way in which that should be done. It is considering supervisory tools - for example, extending non-profit loan guidance to all European Union banks - the use of insolvency and debt recovery frameworks, such as how there could be better transparency in the context of insolvency outcomes, the development of secondary markets, which goes back to another point on the agenda regarding the development of a single capital market for Europe and what measures need to be taken in the context of restructuring the European banking sector. Those are the four ways in which the committee is considering the issue. The Government will engage constructively with what is being proposed. I have said that certain matters need to be monitored. We must ensure that the forced loan route is not unnecessarily favoured over the restructuring route. Both can play a very valuable role, which is the experience we have had in the economy in recent years. There is a need to be sensible regarding additional powers such as the Single Supervisory Mechanism that are made available to other bodies and we must ensure that any developments in respect of the restructuring directive currently being debated in Europe recognise Ireland's legal framework and, in particular, its common law framework. Many of the matters that are being debated and that will be the subject of negotiation are constructive in nature but we must ensure that they respect the direction in which Ireland is moving.