Brian Lenihan Jnr (Dublin West, Fianna Fail)

The mandatory character of the amendment limits the position rather than helps it. With regard to the boards, I have made it clear somebody should be on the board in the public interest. The details of that must be worked out with the relevant institutions. They have either charters, constitutions, founding documents or articles of incorporation. Clearly, that cannot be imposed on a standard basis by the Oireachtas through legislative amendment tonight but I accept, under the powers provided to the Minister under the legislation, I can require this of the banks in the discussions I will have with them on the implementation of the scheme.

Deputy Bruton tabled an amendment relating to the Minister's discretion regarding such conditions and he proposes the deletion of the words "so far as possible". I do not propose to accept amendments Nos. 16 and 17. The spirit of amendment No. 16 is strongly in keeping with the Government's policy objective. It may not be possible in every circumstance for the relevant financial institution to make good the financial support provided. This may preclude the Minister from giving a guarantee to an institution in the interest of financial stability in circumstances where there is doubt that the credit institution will have the resources to repay. If the financial institution is unable to repay, as a matter of policy it is the stated intention of the Government to introduce a levy on the banks collectively. Deputy Barrett made a good point. The purpose of the legislation is to ensure banks survive and not to ensure they fail. Many contingencies are being understandably canvassed in the debate but the purpose of the Bill is to ensure banks succeed and this period of instability is removed.

I refer to Deputy Burton's amendments. She proposes that the obligations of a credit institution seeking financial support shall include an obligation to take all measures to avoid abuse of the financial support in accordance with the detailed scheme. That is unnecessary because it will be dealt in the scheme. Deputy Burton proposed an expert oversight board that would report to the PAC every six months. I have outlined my opinions on the functions of the PAC, but I was taken by Deputy Rabbitte's suggestion that we should consider having an informal committee on banking. At least, that is what I took his meaning to be.

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