Eamon Ryan (Dublin South, Green Party)

This is a standard provision which applies in the case of a majority of appointees to State boards. Appointees to State organisations must be upstanding in all matters, including financial matters. If an individual is financially compromised, he or she could be open to undue influence. This provision is, therefore, designed to protect the integrity of the board.

Following the concerns voiced on Committee Stage in regard to this provision, advice was sought as to the precise meaning of this term. I am advised the phrase is a technical term which is borrowed from the bankruptcy code. It refers to an arrangement made with creditors under the Bankruptcy Act 1988 or a composition made with creditors under that Act. A note on the matter was forwarded to Deputy Coveney.

This is the provision we have included in the Broadcasting Act 2009, the Dublin Transport Authority Act 2008, the Consumer Protection Agency Act 2007 and the Sustainable Energy Act 2002, so it is a standard provision. I agree with the Deputies that we will have to consider the whole issue of debt, insolvency and mortgage protection. I welcome the appointment of a specific group within Government which is considering this issue and seeking to implement the very progressive measures set out in the Law Reform Commission report. The group will seek to amend the Bankruptcy Act 1988, which I consider Dickensian and ineffective in its use and which does not provide us with the flexible conditions we need at this time.

As this is a technical provision and as it all relates to the Bankruptcy Act 1988, it is for us to seek changes in that Act through the group which is coming back to Government with specific recommendations to legislate to change that Act. This will change the import of what we are doing in this House in a way we are not able to do. Following the legislative changes I expect to come out of that process, we will be much better placed to adjust the effect of these terms accordingly.

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