Marc MacSharry (Fianna Fail)

I commend the Government, with the support in spirit of the Opposition, on the innovation and forthright leadership it has shown in recent days. It shows the rest of the world, not least our people, that their legislators are in control and prepared to take the appropriate action as and when needed. One has seen a level of courage and innovation that, lest there was any doubt in recent months, certainly now is present.

I wish to make some points in the context of the Bill. Most importantly, I refer to regulation. While the Financial Regulator has come in for undue criticism in recent days and it might take some time while the solvency issue is dealt with, ultimately we will see how well it has acted in respect of its input into matters such as 100% mortgages and the steps it has asked the banks to take when lending in that fashion. Time will tell exactly how well it has performed in that regard. Personally, I believe the Financial Regulator and the Central Bank have performed in a responsible manner.

On foot of this new legislation, the regulator must be much more vigilant. Having listened to the debate in the Dáil, I agree the State must establish a corporate presence in each bank to ensure lending behaviours are at the optimum level and their most responsible. The State must take a more vested interest because, effectively, this constitutes the people taking a stake in the banking system. The Minister noted the Government was going deep into banking. As it is going deeper than any previous Government, it must be vigilant.

In recent months, far from daily contact with each financial institution, the regulator has been in contact with each of them on an almost hourly basis. However, it is important to take a direct interest in risk analysis and if this constitutes board representation, so be it. The regulator certainly must have some corporate presence in the institutions. I ask the Minister to take this on board. I hope the regulator will actively seek to assess the asset quality of our institutions in order that we can see, for want of a better expression, what is under the bonnet. I do not share the fear expressed by Senator Twomey that there might by some ninja type problem in this country and I believe my view will be borne out in due course.

Senators will agree that in the aftermath of current events, we must seek to have a pan-European, if not global, level of regulation to ensure these events are not repeated. As citizens of the world, we have a responsibility not only to Irish citizens to ensure these problems do not recur.

In recent days, many colleagues have referred to the risks to the taxpayer. As the Minister of State, Deputy Mansergh, has clearly pointed out, the risk is not anywhere near the level indicated by some Members. According to the National Treasury Management Agency, the difference in value between bank assets and liabilities is €80 billion. Nevertheless, we must be vigilant and continually assess the asset quality of financial institutions.

Issues such as remuneration, salaries and bonuses will arise when we consider Committee Stage amendments. I acknowledge that in some cases colossal salaries are paid in the banking system. While I have no particular view on how low or high salaries should be, if the State gets involved in directly dictating salary levels it must ensure we do not impair our ability to attract the best people. I have a mild concern in that regard because there is global competition for the best people.

We are taking the right action at the right time on behalf of our citizens who are our economy. I thank the Minister of State for coming before us and commend the Bill to the House.