Tom Parlon (Laois-Offaly, Progressive Democrats)

I have explained the reality as it is regarded outside the country. The Deputy can raise those issues but it is not how the country is seen from abroad.

I wish to deal with some of the other issues that were raised during the debate. Deputy Bruton certainly recognises the importance of cherishing and nourishing the financial services sector. While Deputy Burton raised some caveats, she is also quite supportive of the legislation. I assure Deputies that the sector is constantly dynamic and innovative. The original Act was introduced six years ago in 2001. Due to its innovative nature, some elements did not work as smoothly as expected, so that is why I am proposing these technical amendments.

The EC capital requirements directive was passed in June 2006, so it is important for us to move quickly in this competitive area. Moving early to make such amendments will allow our financial services sector to remain competitive internationally. That is what the Bill is about.

Deputy Boyle raised the concerns of Irish property owners but they will not be adversely affected. The loan-to-value limits on assets in the pool are conservative at 80% of LTV on aggregate. This gives a wide margin of safety to bond holders should the property market slow down. We do not have any concerns in that regard. The amendments we are making are technical in nature, falling into line with the new EU directives. It is all a matter of common sense. Likewise, the amendments have been drafted with the close involvement of the financial regulator. We have received the best legal and technical advice. In addition, the amendments have been vetted and cleared by the ECB which has confirmed that it has no problem with them at all. As Deputy Boyle said, the Irish banking industry has welcomed the Bill.

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