Results 7,041-7,060 of 16,537 for speaker:Brian Lenihan Jnr

Seanad: Credit Institutions (Financial Support) Bill 2008: Second Stage (1 Oct 2008)

Brian Lenihan Jnr: I want to address again the issue of the punch bowl because the Central Bank was not in charge of it. Since we joined the euro, we have had very low interest rates. That is the fundamental cause of the overheating which occurred in the economy. In the circumstances in which we now find ourselves, we must make a principled decision about which direction to take. I am pleased Senators have...

Seanad: Credit Institutions (Financial Support) Bill 2008: Second Stage (1 Oct 2008)

Brian Lenihan Jnr: I will speak about Monday evening later. On the other side of the equation, one has the option of nationalising one, two or three vulnerable institutions. Does anyone believe that if we had nationalised an institution, it would not have resulted in a run on all the institutions in a small country such as this? We must devise policy which is appropriate for our country. As far as Europe is...

Seanad: Credit Institutions (Financial Support) Bill 2008: Second Stage (1 Oct 2008)

Brian Lenihan Jnr: At the end of the day, there are six banks which would be orphaned without us. Europe was not prepared to adopt them. Therefore, we had to take decisions.

Seanad: Credit Institutions (Financial Support) Bill 2008: Second Stage (1 Oct 2008)

Brian Lenihan Jnr: I would be delighted to see the putting in place of a Europe-wide system. I would fear a retreat to economic nationalism or isolationism such as happened after the Great Crash in the United States in 1929. I agree with those Senators who urged me to take the issue up at ECOFIN and within the eurozone group of Ministers to determine if we can we have a Europe-wide protection for banks...

Seanad: Credit Institutions (Financial Support) Bill 2008: Second Stage (1 Oct 2008)

Brian Lenihan Jnr: ——and the ratification of it which the Houses have given. I appreciate the support which has been given on all sides for this measure but I am also deeply conscious of the responsibility it will impose upon me in the days and weeks ahead. I want to update the House on the progress we have arrived at in designing the scheme and the plans we have for it because it is an important one. My...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: The Bill is necessary to allow the State to act urgently and decisively in respect of a complex issue when markets are volatile, while keeping the Houses informed of the details. This amendment would prevent the legislation from coming into operation, except in respect of section 7, until the scheme was approved by both Houses. The purpose of the Bill is to enable prompt, effective and...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: That is an extremely pertinent question. As previously indicated, it is intended, subject to the commercial discussions which must take place, to confer the guarantee upon the six domestic banks. Section 6(1), which is the core provision in respect of guarantees, states that the Minister may provide financial support. Section 6(4), which relates to the guarantee clause, states "Financial...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: It is important to note the precise terms of section 6, whereby financial support can be provided in such form and manner as determined by the Minister and on such commercial or other terms and conditions as the Minister thinks fit. The legislation empowers the Minister not alone to set commercial terms, but also other terms in the arrangement arrived at with the relevant banks as he thinks...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: We all have legitimate aspirations and ambitions and points of view we want to articulate. This sometimes leads to too much legislative clutter. There is no legislative clutter attached to this section. The Minister can go in and insist on commercial or other terms. As I indicated on Second Stage, other terms are an issue that I am determined to address. I am determined to ensure the...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: I am willing to entertain and examine Senator O'Toole's suggestion. The Senator is not the most popular figure in the Department of Finance, because he is such an effective negotiator on conditions of service. That said, I will examine whether a suitable group of wise men or women can be constituted to consider the issue.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: I have some sympathy with the point of view expressed by Senator Boyle, but as Minister for Finance I cannot comment on the matters he has raised. I gather RTE now discloses staff salaries, but it had a similar arrangement for some time. Those were the two State bodies that were exempt.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: As far as the section is concerned, there is——

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: Now Senators know why the Department of Finance fears Senator O'Toole.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: The provision does involve a degree of invasion of the normal commercial management of a company, which is in my view a little excessive. A more important question is the extent to which, as a result of this guarantee, there will be public interest representation on the boards of the relevant financial institutions.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: Senator Twomey has raised an interesting question and one that is worth examining. My officials are already considering, in the context of the preparation of the scheme, how the terms and conditions implemented on foot of it will prevent charges being passed on to the customer. That is the way in which we should deal with the issue.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: Regarding the Central Bank and the issue raised by Senator Burke, liquidity in the Irish financial system is provided by the European Central Bank. It assures the liquidity of the Irish banking system. The Irish Central Bank has assets and liabilities but in general provides liquidity in an emergency rather than acting as a normal provider of liquidity in the system. That emergency...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: I take the Senator's point. There may be more ample resources following the enactment of this legislation given the amount the Exchequer should acquire under it. On the point about the Central Bank, the Governor of the Irish Central Bank sits on the governing council of the European Central Bank, and a liaison is maintained between him and the President of the European Central Bank, Monsieur...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: This issue was raised in the other House and I outlined the position in my reply to the Second Stage debate in this House. As this legislation is drafted and in its preparation, it was always intended to cover all credit institutions. A credit institution is a term of art in European Union law. In theory, the legislation might apply to all EU institutions, but there is no intention for it...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: It is not my intention or that of the Government to expend €10 billion on the Irish banking system. I would be exceptionally concerned at that reference in the legislation. Our immediate task is to establish a guarantee scheme, which will result in an accrual of funds or value to the Exchequer or State in some shape or form. It will be done through the use of the Irish sovereign name....

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: Yes, and even if the extraordinary set of circumstances outlined by Senator O'Toole came to pass, the State insisted on the gradual winding down of the assets of a bank and there were a deficit at the end of that procedure, the Government has made it clear that its policy would be to levy the banks to the extent of that deficit. The purpose of this legislation is to prevent any exposure to...