Alan Shatter (Dublin South, Fine Gael)

I do not want to return to issues I raised earlier but, in connection with section 6, could the Minister explain to the House what happens if, once this legislation becomes operative, a foreign bank outside the State moves to take over one of the banks which will be covered by the legislation, in circumstances in which the proposed merger or acquisition is not necessary to maintain the stability of the financial system under the terms of section 7? Given that all the financial institutions in question trade on the stock market will he address that issue? A bank elsewhere could see a substantial advantage in making a bid to take over an Irish bank and back itself in to the guarantees we give by relocating their central operations in this State. What protections would exist in that context? What would happen if one of the major American banks in financial difficulty made a takeover bid for Bank of Ireland or AIB, deciding to operate from and base its main office in Ireland while turning its American operation into a subsidiary? Would we have to provide cover for a bank that has had no involvement in, and nothing to do with, our economy, in circumstances where the economy does not depend on its survival but on that of the bank it has moved to take over? What consideration has the Government given to such a move being made on the stock market in the days following the enactment of this legislation?

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