Alan Kelly (Labour)

I move amendment No. 23:

In page 3, between lines 29 and 39 to insert the following new subsection:

"(6) No guarantee under this section shall apply to any business acquired by an applicant after the date of passing of this Act unless the Minister for Finance so directs, or to any liability of a bank acquired on the basis of an interest rate that differed more than one per cent from the associated banks lending rate.".

This is an important amendment which aims to limit those institutions from adding more risk and taking more reckless decisions after being underwritten by this Bill. It seeks to ensure that no guarantee under this section will apply to any business acquired by an applicant after the date of passing of this Act. Once the Bill is passed, any business cannot add on more subsidiaries, if it has any, unless the Minister so directs. We discussed this matter on Second Stage.

Also, the same bank or any bank cannot add on any liability on the basis of an interest rate that differs more than 1% from the associated banks lending rate. That is an additional qualification. This is a very important amendment, on which we would like to hear the Minister's comments, which seeks to avoid circumstances whereby these institutions can add on more liabilities after signing up to the contracts that will subsequently be put in place with him.