Brian Lenihan Jnr (Dublin West, Fianna Fail)

I would like to reply to Deputy Bruton, if I may, because he raised the question of what my attitude was to an amendment — I think there is a similar amendment in the name of the Labour Party — concerning the issue of how the scheme would be submitted to the House. In the course of the debate, this matter was raised by Deputy Quinn who pointed to the fact that whereas the relevant regulations under section 5 must be approved by the House, the current text of the Bill envisages, at section 6, that the scheme can be drawn up, submitted to the House and then the negative resolution procedure has to be invoked in the House to set it aside. A relevant consideration in drafting the section in that fashion was that we want to get this scheme done as rapidly as possible. Dáil Éireann may not be in session when the scheme is drawn up. It is very important for the Irish State, in the event that this legislation is enacted, that the scheme is drawn up as quickly as possible in order that we can go into the contractual arrangement with the bank on foot of the scheme. The contractual arrangements of course are confidential. The scheme lays out the overall framework, but the contractual arrangement on foot of the scheme is a confidential commercial document. It is essential for us that we enter into a relationship of stability with the banking system as rapidly as possible. That is why we wanted the legislation in that form.

I am prepared to accept the proposal made by both the Opposition parties that the regulation provision should require that the scheme be submitted to the House. It is important for the State, however that, when the scheme is devised and considered by the House, the House makes up its mind fast on whether it wants to accept or reject the scheme. We want to define our relations with these institutions in the shortest possible period. We have a guarantee of sorts, a moral undertaking given by the Government last Monday evening. We want it spelt out in black and white for the institutions concerned. That is the urgency in relation to the scheme. However, in view of the opinions expressed on this from the Opposition side, I will give an undertaking to the House that I will table an amendment in Seanad Éireann to reflect what has been suggested. That will allow the Bill to proceed to Seanad Éireann and be discussed by the Upper House later this evening, if the House decides not to amend it in any other respect. That is my attitude on that specific question, as raised by Deputy Bruton.

Deputy Bruton also raised the question of European Union collateral and its impact on the assets. While it is an attractive theoretical argument, the fact is the European Central Bank is not going to withdraw collateral from the Irish system. One of the big lessons the Government has learned from this crisis is the great value of our membership of the euro in the stability it affords to our system and the support we receive from it.

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