Brian Lenihan Jnr (Dublin West, Fianna Fail)

On the board of directors, Deputy Charles Flanagan is correct. The company law and fiduciary obligations of directors have coloured how we have drafted the paragraphs of the scheme. The Deputy will notice in the terms of the paragraph, "in order to promote the public interest", so the purpose of the appointment is to promote the public interest, but it is not in the public interest. The director still acts a director of the financial institution and must have regard to the overall well-being of the company, and the duty to the shareholder applies to this director as it does to any other. That is why the paragraph has been drafted in that way. The State is not taking equity participation in the financial system through this legislation and scheme. Because we are a step short of that, one cannot say the director who is acting to promote the public interest represents the public interest. It is a fine distinction in the scheme and, fine though it be, it is to respect the principle that this is still a private institution.

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