Brian Lenihan Jnr (Dublin West, Fianna Fail)

The reason we are doing it this way is that the Seanad is sitting later this morning and the Bill could not be dealt with by the Bills Office in time for the Seanad if we were to amend it here. We will be back at 10.30 a.m. to deal with the Bill if the Seanad chooses to amend it.

On Deputy Shatter's point in regard to section 5, Deputy Bruton should note also that the regulations under section 5 must be approved by the Oireachtas. The section must be construed in accordance with the Constitution because it creates law making powers and, therefore, cannot be used to repeal the provisions of the Act. That is constitutionally clear. As Deputy Noonan pointed out, there is nothing unusual in having a supplementary clause of this type. However, I will arrange for my officials to examine the specific technical drafting issue raised by Deputy Shatter to see whether it can be addressed. I will try to come back to that particular issue on Report Stage if Deputy Shatter so wishes.

Deputy Bruton asked me what factors would be taken into account in regard to any application for extension of the guarantee. Clearly, the first and most important factor is the factor in the legislation itself which is that relating to financial instability, or the stability of the financial system in the State. That is the fundamental factor. Legal advice must be obtained on all the different aspects of this issue, both under domestic and European law.

Deputy Rabbitte raised a very important question in regard to the two year time period. That period of time was arrived at on Monday evening having had regard to all the evidence available to us on what period of time was appropriate for this guarantee. Deputy Rabbitte will understand that in matters connected with an assessment of banking, the scope for prior disclosure by the State to the authorities in Brussels is somewhat limited. I arranged for the relevant Commission officials to be briefed on this matter as soon as the Government made its announcement on Tuesday morning.

However, the issue raised by Deputy Rabbitte was the duration of the guarantee. Again, the Government arrived at a decision on that following advice from the Attorney General and having regard to the assessment we made of the threat which then existed to the financial stability of the sector.

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