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

I thank the Deputies for their amendments. The issue was debated at length on Committee Stage. Deputy Doherty should note that it is not a question of the risk that we might be sitting at home unwilling or unable to come to the Chamber to make such a decision. It is about giving a higher degree of certainty now that in such an eventuality the funds could be released in a timely fashion, with the Minister being the final check. As I made clear on Committee Stage, the Minister cannot accept the amendment. During a resolution event, it would be of paramount importance that funding be made available quickly. The loan facility agreement states that 50% of the moneys must be available within four days and that in exceptional circumstances all the money must be made available in that timeframe. A rapid response to such a request is crucial to prevent contagion in the rest of the banking system, since the whole resolution process could occur over the course of a weekend. Therefore, it could significantly delay a resolution where it was necessary that the Dáil or Seanad be reconvened to make such an approval.

On Committee Stage we discussed the problems in the event that the Dáil has been dissolved for an election. The Deputy aimed to deal with this issue in amendment No. 3. However, we could still have a situation where both the Seanad and the Dáil have been dissolved, in which case it would be impossible to recall either. Therefore, this amendment could result in delays in providing a loan to the Single Resolution Fund due to having to recall the Dáil and the Seanad or waiting for elections to be completed. This adds more uncertainly to the market which may lead to ordinary depositors and small businesses being negatively impacted in such an event.

Although we discussed it on Committee Stage, it is worth recalling that at least 8% of eligible liabilities would have to have been written down, the national compartment of the Single Resolution Fund exhausted and the mutualised parts of the other member states' funds exhausted before this loan facility agreement could be called upon by the single resolution board. The Minister would then be in place to be the final check. Furthermore, the use of the credit line is only a temporary arrangement while waiting for the fund to grow in size by contributions from the European banking sector and the putting in place of a common back-stop by 2024.

The amount the Minister for Finance can approve is capped at €1.815 billion. Any increase in this amount would have to be approved by both Houses of the Oireachtas. Moreover, amendment No. 2, proposed by the Government, ensures that any changes to the loan facility agreement can be annulled by either House. That amendment has been accepted by the Minister. Thus, the Minister believes there are sufficient protections and oversights in place in the Bill without adding more. More conditionality could result in adding greater uncertainty in a difficult situation and potentially impacting retail depositors and small businesses negatively.

For similar reasons, amendment No. 4 from Deputy Doherty cannot be accepted by the Minister.

I wish to refer to amendment No. 5 briefly because it is grouped as well. On Committee Stage I accepted an amendment from Deputy Doherty which provides that the Houses of the Oireachtas must approve any variance of the sum contained in the loan facility agreement. The Office of the Parliamentary Counsel recommended that some technical drafting amendments be made to the text which do not materially affect the purpose of the section.

The details of amendment No. 6 were previously discussed and agreed. I trust amendment No. 2 facilitates the aim of Deputy Murphy's amendment on the issue pertaining to the changes in the loan facility agreement.

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