Brian Lenihan Jnr (Dublin West, Fianna Fail)

The powers regarding capital are also required in a resolution regime. The powers on the appointment of a special manager are frequently found in resolution statutes. The essentials of a resolution regime are contained in this Bill.

Deputy Noonan made the point that these powers would normally be vested in the Governor of the Central Bank and it is intended that the permanent resolution legislation which will be published in February will confer those powers on the Governor. The lead role and responsibility assigned to the Minister under the Bill reflects the huge commitment of State resources to the banking system and the need to safeguard the State's fiscal position in implementing the programme.

In the terms of the facility which has been provided, €50 billion is for drawdown for the purposes of funding the State, for paying our salaries in this House, paying pensioners and discharging current and capital expenditure requirements. Of the balance of €35 billion, we are drawing €17.5 billion from our own reserves in the National Pensions Reserve Fund which is a contingency fund that can be drawn down if required. It is very important that we draw down as little of the contingency fund as possible.

For that reason, the Minister must have a central role in safeguarding the fiscal position of the State which has to be fundamental in the implementation of the Bill. It is also essential that the Minister has wider discretion, drawing on the best expert advice regarding the necessary steps or courses of action that should be embarked upon in seeking to resolve the challenges facing our banking system. Our problems, as all Deputies have recognised in the debate, are sector wide. Therefore, a sector-wide resolution plan is needed urgently.

I and any Minister will work closely with the Governor of the Central Bank but it is imperative that the Minister takes responsibility for this Bill and that is why it is drafted in that way.

See this speech in context