Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

While I welcome the amendment moved by Deputy Boyd Barrett, the matter has been considered at length by the team involved in the establishment of the SPCI. As initiated, the Bill expresses the optimal structure for the SPCI, which will be established as a company incorporated under the Companies Acts rather than as a statutory or public company. A Companies Acts company is more transparent than one set up by statute as it must follow the corporate governance regulations and laws of the State unless exempted under the Acts. Incorporation also provides the Minister with more flexibility in managing the shares on behalf of the State. Importantly, it will allow the SPCI to act on an independent basis in the carrying out of its functions.

It is necessary for the SBCI to act in a strategic manager, taking into account its enabling legislation, but its day-to-day operations should be independent of the Minister and the Government. Therefore, I cannot accept the amendment proposed by Deputy Richard Boyd Barrett.

I refer to section 12, which is relevant in this case. In circumstances where a Minister holds shares in a company enabled or established by statute, it is usual to specify that the Minister in question may sell or otherwise dispose of the shareholding or part of the shareholding. It is not anticipated that the Minister's shareholding in the SBCI will be sold or otherwise disposed of at any time. Section 11(5) specifies that the Minister for Finance is to be the sole shareholder. However, given that it is usual to include a section on the alienation of shares, it was agreed with the Office of the Attorney General that it was best to provide this section in its current form but also to specify the intention that the Minister is the sole shareholder. This is to allow the Minister freedom of action where the proposal is appropriate and to account to the Oireachtas afterwards for his or her actions. This is in accordance with practice whereby the Executive - or the Government - acts and is then accountable to the Oireachtas for such actions. That is the further clarification on the point.

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