Enda Kenny (Mayo, Fine Gael)

We are supposed to be considering section 1 of the Bill on Committee Stage, but this has instead become a Second Stage debate by default. We have heard a series of Second Stage speeches. Perhaps we can examine how we will structure future discussions on Bills.

I asked the Tánaiste this morning about the consequences of the Government's decision in the context of fair competition. I have been contacted by officials from a number of financial institutions which are regulated in Ireland but are not covered by this guarantee. They told me they have evidence of substantial outflows from their institutions to other institutions which are guaranteed under this scheme. When the Minister for Finance responds, he might confirm whether the Government has been contacted by representatives of these financial institutions. Is the Government monitoring what is going on in this regard?

I realise that certain complications are associated with the essential issue I raised with the Tánaiste. Is it possible to ring-fence the activities of institutions which are regulated here in terms of liability, capital and solvency, but which have parent bodies abroad? We do not want to encourage financial institutions to transfer international liabilities to other institutions which are regulated here in the expectation that, by default, they will be guaranteed by Irish taxpayers. I am not sure whether it is possible for the Department of Finance and the Government to ring-fence the activities in this jurisdiction of institutions which are regulated here, but owned by institutions in other countries, while at the same time maintaining a competitive and level playing field. Perhaps the Minister, Deputy Brian Lenihan, will comment on this matter when he gets a chance to do so. I am not sure whether he will respond this evening or in the early hours of the morning.

I would like the Minister to give the House details of the guarantee the Attorney General has given him, in so far as that is possible, that this measure will comply with EU directives and our domestic competition legislation. I would not expect the Attorney General to say anything other than that he believes this proposal complies fully with the requirements of the EU. Concern is being expressed by some of our European partners in this regard. I hope the Minister can deal with that conclusively and comprehensively when he responds to this amendment.

Progress reported; Committee to sit again.

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