Seán Ardagh (Dublin South Central, Fianna Fail)

I have a couple of questions for the Minister arising out of his contribution. I agree that accepting the amendment in toto could result in the EUROSTAT changing its mind in regard to particular items. I recall reading that the reason EUROSTAT accepted the argument put forward by the Central Statistics Office in relation to this matter was that under the methodology it uses, there would be private investors who believe that there is a potential for substantial profit in being part of an SPV.

The reason for using the SPV is to get, as the Minister said, the loan book off the Exchequer balance sheet. We are speaking about a significant amount of money. It is approximately 30% of GDP. If an international investor is monitoring the situation, it looks better on paper if the national debt is at 70% of GDP rather than 100% of GDP. Obviously, serious investors know the difference. This has happened in France and Germany and it provides a better perception of the national balance sheet.

I agree with much of the content of the amendment, including the provisions relating to the suitability of investors. I am delighted to hear the Minister say that this issue comes under the prevention of corruption provisions and that the declaration of interests will be put in place for each of the directors. I am interested to know what issues within paragraphs (a) to (f) the Minister believes would affect EUROSTAT's decision on the matter. It would be interesting for us all to hear the Minister's response in this regard.

At the end of the day, it is important that the principles behind the SPV are set out. I accept what the Minister said, namely, that it will probably be some form of insurance company or people in the market for bonds and pension purposes in the future and who have a stake in the Irish economy who will invest in this vehicle. Is the 10% bonus at the end of the ten years written in stone or can it be adjusted in order to attract investors into special purpose vehicles, SPVs? Has a deal already been done with investors in principle and is there an agreement that they will be prepared to go into this particular type of vehicle based on the current situation and that it is likely to continue into the immediate future? What is the up-to-date position with regard to the coming to fruition of the particular type of vehicle or way of doing things in place currently?

The people involved in this must be above reproach and what the Minister has stated to date suggests this will be the case. He has also said the committee will also be able to examine the code that will be adopted. This must not only be above reproach in form, but also in fact. It is vital that there is no fall-out from the SPV or from the principles or people behind it that could in any way embarrass not only us, but the economy of the country in such a way that our financial credibility could be endangered.

See this speech in context