Results 9,501-9,520 of 16,537 for speaker:Brian Lenihan Jnr

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

Brian Lenihan Jnr: The provision in the Bill which precludes the operation of the Competition Authority only relates to circumstances where there is an instability in the financial system. In all other circumstances, competition rules apply to mergers, acquisitions and businesses. It would not be normal practice in a purely commercial understanding between a bank and the State that the State would impose an...

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

Brian Lenihan Jnr: Liquidity in terms of a bank is acquired through the taking of deposits or the obtaining of interest bonds, interest bearing loans or loans from other banks or the interbank market. We have to inject confidence into that market. That is one of the main purposes of this legislation where Ireland is concerned. On the liability side of the balance one also has subordinated debt but that is...

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

Brian Lenihan Jnr: This proposal is worthy of examination but if one looks at its two core ideas, there are better ways to implement it than by this legislative format. The risk assessment committee is an important issue. However, the Financial Regulator already has powers to attend meetings of such committees, to open the latch at a bank and look at risk practices. We need a more frequent exercise of that...

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

Brian Lenihan Jnr: This is the last amendment to be tabled by the Opposition and I have one further amendment to go. In the amendment under discussion Members seek to impose a monthly reporting obligation. I am always accountable to Dáil Éireann. We are dealing with institutions which have shares quoted in the marketplace and which are subject to huge degrees of public scrutiny. Admittedly, two of them...

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

Brian Lenihan Jnr: This is a technical amendment required to ensure the non-registration of charges only applies to charges with secure liabilities arising under section 6. In other words, all other charges created by credit institutions will be treated in the normal way.

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...

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

Brian Lenihan Jnr: While I understand Senator Kelly's point, these regulations must be laid before the Houses for approval in the first instance, so they are approved by the Houses. That is the key point set out in the legislation. The Senator seeks to amend this provision to provide some kind of power for the Oireachtas Joint Committee on Finance and the Public Service. However the requirement of the...

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

Brian Lenihan Jnr: These ones are. The Senator is anticipating the next section.