Brian Lenihan Jnr (Dublin West, Fianna Fail)

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 power by the regulator rather than adding it here.

In regard to the scheme and the contracts being drawn up on foot of it, there will be specific provisions to prevent lenders from engaging in abusive loans. That is a crucial issue in the implementation of this legislation in order that there will be no abuse of the sovereign status we have now attached to lending by these agencies.

With regard to appointments by the boards of the banks, the position is that the directors of these boards have fiduciary obligations to their companies. I propose, in consultation with the relevant banks, to make the case for and secure the appointment to each of these boards of someone who will act in the public interest. Of necessity, the banks all have their own charters and constitutions, articles and memorandum of association. Therefore, it would require an adaptation by each institution. I am anxious to see this happen and do not wish it to be left in the category of "active consideration". I am glad, therefore, that Senators have pressed this point. The objectives can be achieved without this legislative format.