Brian Lenihan Jnr (Dublin West, Fianna Fail)

-----is look for an order in accordance with the statutory scope of the powers for which the Minister can apply.

For example, the power to give a direction is the most topical because a direction order may be required in the case of AIB. Such an order would be applied for and confirmed by the High Court and would then take full force and effect, notwithstanding the provisions in the listed legislation, the rules of law or equity, the codes of practice, the listing rules, the memo and articles of association of the relevant institution and any agreement to which that institution is a party.

The purpose is not to empower the Minister to repeal legislation, rather, it is to protect orders made under valid legislation enacted or to be enacted by the Oireachtas and to enable the Minister to apply and make these orders, subject to High Court confirmation. Those particular orders cannot be challenged on the basis of some other enactment. The orders are made within the terms of this enactment and that is the second effect of section. All of this, I have been advised by the Attorney General, is in accordance with the Constitution.

Some wider questions were asked which relate to what we are discussing. The first question was how this Bill relates to the bank resolution legislation which the programme requires us to have published by the end of February. I take issue with Deputy Rabbitte. This is bank resolution legislation in substance as well as form because the most fundamental power in bank resolution legislation is the power to move assets and liabilities and that power is clearly conferred in this Bill.

The power in regard to subordinated debt is a fundamental provision in resolution legislation and is also dealt with in this Bill.

See this speech in context