Brian Lenihan Jnr (Dublin West, Fianna Fail)

The Government's proposal is to unify the two boards that exist separately for the regulator and Central Bank into a unified Central Bank commission. The Governor will preside over the commission, but accountable to that will be separate independent offices, one on the Central Bank side and the other on the regulator's side, the supervisor of regulation. One of the key issues we will have to consider in the enactment of the legislation, and I welcome views from all parts of the House on this, is how we make that system accountable to this House and what further check we insert into that system to ensure its robustness.

A considerable discussion is taking place and general conclusions will be arrived at by Heads of Government later this week on the future of the European regulatory system and the establishment of a college of supervisors at European level. A more robust supervision from Europe would be welcomed by the Government. We have supported the initiatives of the French and Government Governments on that. That is our international position on the question. Until we see the precise shape of the European supervision it is not possible to arrive at a final conclusion of what additional safeguards need to be written into our system regarding the Central Bank commission.

I am committed to the need for more intense Oireachtas supervision of the Central Bank commission. Whatever Oireachtas committee is designated as the body that should call the Central Bank commission or Governor for the purpose of hearing their views should have the capacity to sit in private as well as in public so a frank exchange of views can take place. I agree with Deputy Burton that one of the difficulties in this area has been the tendency on all sides to deny a problem exists. This is not a new problem. It has happened in every banking crisis the world has seen, going back to the South Seas bubble, which was a stock market crisis. The denial of a problem becomes part of the problem. The Oireachtas should have a part to play in assessing the Central Bank commission's work but that will be worked out in the details of the legislation.

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