Michael Noonan (Limerick City, Fine Gael)

My predecessor appointed all the public interest directors and he had the same relationship with them as I have. Their job under company law is to bear in mind the interest of the institution on whose boards they serve. That is their priority, but there is no reporting back. When they are considering a particular issue at board level, as well as making the decision in the interest of the bank they are obliged to ask what would be in the interest of the public. However, they are not subject to direction from the Minister or the Department on that. They are independent, as are all directors in accordance with company law. That is their fiduciary position.

Deputy Doherty's very legitimately asked how long the directors would remain in place and what is the situation for appointments. First, I will seek a renewal programme from each of the chairpersons and I have asked in the first instance to bring that up to the night of the infamous guarantee in 2008. That will be one part of it. The regulator, Mr. Elderfield, is writing or has written to all directors and effectively advised them that he will adjudicate on their suitability to be directors based on their knowledge of banking and financial affairs. That process will terminate in January 2012. What I am doing takes it up to 2008 and what he is doing takes it into the area of the new directors. We will wait to see what happens.

With the exception of Bank of Ireland, the State is now the majority shareholder in all the other banks. As majority shareholder, I can instruct how shareholders vote at the annual general meeting. If all else fails, I can refuse to exercise the voting rights of the shares to put any director back in place at the AGM.

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