Noel Treacy (Galway East, Fianna Fail)

In response to Senator Bannon, this is the first time in my 23 years of public life that I have heard anyone accuse civil servants in the Department of Finance of being cronies of anybody in politics. I do not think they are cronies to anybody in any other Department either. It is a very independent, focused, strong, macro-operation that operates on the basis of a micro-analysis of every decision taken. There is no danger of anything like that happening.

The nominee would be a senior staff person in the Department of Finance with a track record of public service and an understanding of law, finance and public service operations. As in the case of corporate appointments, the nominee will receive no remuneration for service on the board. He or she will represent Ireland on the board and will serve the country with diligence and dutifully and will make the proper decisions in the overall interest of the bank.

In response to Senator Mooney, I stated in my closing contribution on Second Stage that Ireland does not intend to call on any resources from the bank for projects. Due to our economic situation, the Government proposes to run the economy and the projects out of our own resources and with the support of the European Union and various instruments and Structural Funds made available to us. That does not mean that in the future we may not do so.

When projects are presented to the governing board, all the member states are represented at the board. The Irish representative would be part of the decision-making process and would not have to leave the board at any time. It is a very focused board and there is no doubt that all members will discharge their duty with honour and integrity and achieve a satisfactory conclusion.

On the point raised by Senators Daly, Mooney and perhaps McDowell, the European Bank for Reconstruction and Development has a different focus. The Irish appointees have full-time posts. Two former politicians were appointed, based on their experience and qualifications. The bank's function is to look after funds and projects on a regional or national basis. It provides the funds and decisions are taken at national level on the disbursement. The Council of Europe Development Bank deals with each project as it arises. Remuneration is not paid to the Irish representative and we will only appoint the best person. There will be no office in Dublin. The bank's office is in Strasbourg.