Pearse Doherty (Donegal South West, Sinn Fein)
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It is still a long way off the US model, under which the figure is 80%. Mr. Carrigan is saying that the negotiations are open, but this has been on the table for quite a while. What surprises me is the position of the Department and Government. Mr. Carrigan mentioned a number of times that he is not in favour of light-touch regulation. I put it to him that this is light-touch regulation because, again, he has not be able to convince me that the solution he is putting forward would be effective. These funds have lost money in the past and will continue to lose money as assets depreciate and appreciate. What Mr. Carrigan is suggesting goes against the grain of what the European Commission is suggesting, which is that there should be a minimum buffer.

I would obviously be concerned if there were an impact in terms of job losses, but has the Department carried out any independent research rather than just listening to what the industry is saying, which is that it will close shop and move out? Has the Department carried out any independent research regarding the impact of these funds? If one were to talk to AIB, or if Richie Boucher or David Duffy were sitting here and we told him we were intending to increase the banks' tier 1 capital ratio to 15% due to a regulatory requirement, he would tell us the bank would have to close up shop, but it would manage it. Banks have managed increases in requirements under Basel I and II by increasing fees. It has been shown that an increase in fees of up to 3% would be required. That is what the industry is telling us, but I could say one could probably split the difference to get the real figure. Multinational companies and banks are investing their money in these funds. Nobody sitting around this table is investing his or her money in these funds. Yes, there are pension pots, but at the end of the day, if these funds collapse, who picks up the tab? If there is not enough money because this type of fund is not variable but constant and has given a commitment that it will pay out the money an investor paid in subject to its management fee, when the asset value falls and one of these funds collapses in Ireland, who picks up the tab?