Paul Coghlan (Fine Gael)

If necessary.

The Minister acted decisively. Perhaps he had little choice. Apparently, a gun was put to his head on Monday night when some of the leading executives of our top financial institutions invaded Government Buildings, and people had to burn the midnight oil. As has been stated, we are acting in the national interest to safeguard our economy, to which the banking system is obviously vital. We need it to keep the wheels of commerce and industry oiled and to safeguard the jobs and livelihoods of our people. As Senator Feeney has just said, there are many people working very hard in our banks, whatever about some of the people at the top, although I am not saying some of those are not working hard also.

It is obvious that the banks masked the situation and totally understated what would appear to have been the necessary provision for bad debts, despite the assurances they gave, as mentioned by Senator Twomey, to the Joint Committee on Finance and the Public Service not too long ago. We must be careful about buying into all of their past poor lending decisions. I look forward to hearing the Minister's response to this, as well as the other points I will address.

Directors' compliance, in regard to proper and correct corporate governance, must be examined. I have no doubt this is very much on the Minister's mind. The Minister will also, I am sure, talk about the scheme that will lay out the basis for the levy. It is in the public interest, as the Minister has indicated already, that he ensure proper representation on the boards of the banks. Equally important are the codes of practice for risk assessment committees and the proper regulation of these. The quality of management of the banks, in light of what we have now learned, has left much to be desired. This requires careful examination. I would also like to hear from the Minister on that. The State is going in deep. There is now no doubt about that. There has been excessive remuneration at the top in the banks for short-term success which did not last. That must be ended forthwith.

I would like to hear the Minister's view on auditing within the banks. Auditors are there ad infinitum, it would appear. They are there too long and too many cosy relationships have been built up. What equity is it proposed to take, and on what account would the Minister propose to take it? As has been said, the Minister is being given major powers. I am not saying he will not act responsibly; I accept that he will. However, there is major responsibility involved, and the Minister must talk to us about the banks. Some of them behaved badly, perhaps recklessly in a few instances. I agree on the need for higher charges and for the State guarantee, and those banks that engaged in higher-risk lending——