Brian Lenihan Jnr (Dublin West, Fianna Fail)

I will be judged on this matter by the quality of the people on the panel. That is the key point. Their contribution and record regarding their capacity to act in the public interest will be the judge of their ability.

Deputy Alan Shatter raised the issue of lending policies and the treatment by banks of those who get into repayment difficulties. This is covered in paragraph 26 which states:

Each covered institution shall, at such frequency as the Minister shall determine, confirm in writing to the Minister its compliance with the Irish Banking Federation Code of Practice on Mortgage Arrears and the Consumer Protection Code issued by the Regulatory Authority.

That is best practice and it is reinforced in the scheme.

Deputy Alan Shatter also raised the issue of warranted and unwarranted charges. The bank could charge a higher risk customer the higher rate because of the existence of the guarantee. Again, the degree of control that is exercised over the scheme means that improper deductions from customers cannot take place on foot of the provision of the guarantee and the liability of the banks to pay the State.

We envisage the negotiations to finalise the scheme will be completed within days rather than weeks.

Deputy Pat Rabbitte raised several interesting questions but I wish to clarify one matter he raised. The subsidiary banks to be covered in the scheme are headquartered, have a corporate existence and are regulated in Ireland. We are not covering banks which are established in Ireland but have headquarters overseas. Regarding the ring-fencing provision, none of these institutions is the same. It is important we have a more general power to ring-fence the assets in terms of their authorised securities and their assets in the jurisdiction.

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