Kieran O'Donnell (Limerick East, Fine Gael)

I wish to touch on some items within the Bill. The Government has guaranteed the extension of its own guarantee. In principle, there is nothing against that but it puts taxpayers' money at risk for an extended period. In effect, the Minister will have to bring a scheme back to the House but it appears he is putting the cart before the horse. We will have no precise idea of what is in the scheme. Does the Minister have a date for the extension of the scheme? When will he give us an indication of that date? When will he bring the scheme before the House?

Regarding the pension scheme, it is an adjusting item for general Government balance that has not been paid for by the State but effectively comes from the pension funds of other semi-State bodies. The Minister is putting it forward as an adjusting item but I believe it should have been left as a non-adjusting item because it reduces the general Government balance although it is not a payment from the Minister's good self on behalf of the taxpayer. Was any form of due diligence carried out by the Department prior to taking over the pension funds? Was any proper actuarial valuation carried out on the assets and liabilities? I understand that the former amount to approximately €1.75 billion and that the latter amount to approximately €3.1 billion. On what was the valuation carried out and is it up to date? That the deficit is approximately €1.35 billion should be taken on board.

The asset value of €1.75 billion is reflected in the Minister's contribution to the National Pensions Reserve Fund, NPRF, and is an adjusting item in terms of reducing the general government balance, but the liability of €3.1 billion is not being reflected anywhere. In normal business, one would be required to reflect this liability.

Part 3 of Schedule 2 amends the Insurance (No. 2) Act 1983 to "enable the Financial Regulator to present a petition to the High Court for the administration of a life insurance or reinsurance undertaking and the appointment of an administrator where it considers that the business of the insurer-reinsurer is being or has been conducted in such a way that inadequate provision has been made for its debts including contingent and prospective liabilities". Is there a specific reason for including this amendment in the Financial Measures (Miscellaneous Provisions) Bill less than two weeks prior to the Dáil getting up? I assume that the Dáil will sit until 9 July. We are not having a real debate, as Second Stage will be guillotined in just over 30 minutes. Given the possible implications for the Exchequer and the taxpayer in terms of life insurance companies-----

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