Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

I thank Deputies for their contributions to the debate on this motion. In wrapping up the debate, it is essential that we acknowledge

that the obligation to consult with the European Central Bank on matters in its field of competence is a legal requirement under the EU treaties. As legislators, we must abide by the laws of the land. In a wider sense, it is important that all draft legislation is properly considered to ensure that it achieves its objectives, with minimal adverse effects. This requires the proper drafting of legislation to ensure that it is consistent with wider national and EU legislation and also that the legislation is constitutional. Additionally, it is our responsibility, as legislators, to consider the potential unintended consequences of legislation and to ensure that we mitigate these consequences where we decide to proceed with draft legislation.

The consultation with the ECB is only one part of this wider necessary consideration of legislation. We must also consider the economic and social effects of legislation. Too often we consider the initial beneficiaries of a well-intended, targeted measure without considering the wider costs to citizens both as taxpayers and those reliant on public services. Particularly in banking matters, it is vital that we consider the costs of regulation to the economy and the cost of credit to all consumers of finance, personal consumers, business consumers and the SMEs, that create the majority of jobs in our economy. It is a reality that the cost of credit directly feeds through to our international competitiveness in labour costs and capital costs. The Government is committed to supporting a financial system that strikes a fair balance between sustainably low cost credit and necessary consumer protections.

Deputy Kelleher asked about consultation. The obligation on authorities of member states to consult the European Central Bank on matters in their field of competence is a legal requirement under the EU treaties. The draft legislative provisions within the ECB’s field of competence include: currency matters; means of payment; national central banks; the collection, compilation and distribution of monetary, financial, banking, payment systems and balance of payments statistics; payment and settlement systems; and rules applicable to financial institutions in so far as they materially influence the stability of financial institutions and markets.

If we do not consult the ECB on these matters, we would be in breach of the EU treaties and this could lead, as pointed out by Deputy Barry, to infringement proceedings being taken against Ireland as the member state. The ECB’s guide states:

In those member states in which individuals have the right to initiate proceedings to annul a national legislative provision on the grounds of a serious procedural defect, individuals should also have the right to seek to annul national legislative provisions adopted in breach of an essential procedural requirement of Union law, such as the prior consultation of the ECB.

In view of the serious consequences arising from a failing to consult with the ECB, it is important that we agree the proposed motion and its amendments to Dáil Standing Orders. The failure to consult the ECB is only relevant in a legal challenge if the State fails to consult the ECB. During the debate on Deputy McGrath's Bill, the Minister for Finance raised the need to consult the ECB. The Minister then followed up the matter with a letter to the Ceann Comhairle.

Reference was made to interest rates. The IMF funds were closer to 6% and the EU funds were closer to 2% to 3%. That is why Ireland refinanced out of the IMF funds last year and why the Government reduced the rates. I would recommend that Deputy Mattie McGrath look at the banking inquiry report. The Deputy should also be careful when he casts such aspersions to scapegoat the authority of this Parliament, where there is such authority.

We can have this consultation without interfering with our own legislative timetable, authority or sovereignty. The ECB opinion is not binding. We are the primary makers of legislation and we should not be afraid to consult, where necessary, whether we are in government or not.

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