Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I move amendment No. 15:

In page 10, line 20, to delete "may" and substitute "shall".

This amendment is proposed, on foot of our consultation with the European Central Bank, to set out in clearer terms that the Minister shall provide funding to the Central Bank to carry out its functions under the Bill in the event of a shortfall in funding.

Members will recall that I outlined in the course of my Second Stage speech that the Minister consulted with the ECB in July to seek its assessment of the Bill in respect of the prohibition on monetary financing under Article 123 of the Treaty on the Functioning of the European Union, as the Bill confers new tasks on the Central Bank with regard to collecting data that seek to improve transparency in the insurance sector. In response, the ECB invited the Minister to clarify through appropriate amendments that any anticipated or actual shortfall of funds to defray the bank's expenses under the draft law will always be granted by the Minister on a regular and prompt basis as the costs arise to ensure that the bank does not have to fund the cost of its task under the draft law from its own funds. Further information on this was provided to members in the briefing sent to the committee.

As a result, I am introducing this technical amendment to section 11(3) to reflect that the Minister shall, rather than may, on the written request of the bank, advance to the bank such sums he or she thinks proper to enable the bank to defray all of its expenses, arising in that year, associated with the function the bank is required to perform under the legislation.

I believe that this amendment, on balance, is sufficient to address any hypothetical concerns around future monetary financing raised by the ECB in its opinion.