Fiona O'Malley (Progressive Democrats)

I noted a wry smile on the face of the Minister of State when Senator Hanafin suggested that somebody from the Independent benches might take up a job on the bank's boards. I find myself in considerable agreement with much of what Senator Ross has just said. We need to note there is a requirement on Government to help the financial institutions of the country for fundamental reasons. However, we need to be assured that this will change the practice in banks. The reservations Senator Ross has highlighted would make one think that perhaps we should be more vigorous.

Having listened to the speech of the Minister of State today and having read the resolution yesterday, I am concerned about some issues, one of which is that the Minister shall appoint observers to the various committees. Like Senator Ross I wonder about the status of these observers. We are interested in supporting the economy and are using the public's money to do so. The quid pro quo is the appointment of people to the boards of the various banks to work, observe and look after the public interest. I would have concerns if the people on these committees are just observers. Is the Minister of State in a position to reassure us that whatever reservations the publicly appointed — if I may call them that — observers might have will be taken into consideration in reaching decisions?

Having listened to the Minister, Deputy Brian Lenihan, speak on the issue I realise there is a danger of a conflict arising when someone is appointed to a board. That person is no longer necessarily allowed to look after the interests of the public money — the purpose for which he or she was appointed — but must look after the shareholders' interests. We are concerned about the public interest but, as soon as somebody is appointed to the board, they will no longer take account of it, which presents us with a dilemma. We must, therefore, move gingerly on this.

I also share the concern of Senator Ross about the banks being allowed to choose the appointees and I echo his call for two appointees to each board rather than one. Public money is being looked after and we must have a say in that. We have afforded banks an enormous security blanket and we must be recompensed for that. Perhaps the proposed panels should not be established because they do not offer the opportunity for people to pick and choose and to ensure it is not a banking insider. Scrutiny is needed. Will the appointees to these panels change banking practice? It must be accepted banking practice has put us in the position we are today. Whatever about international banking practice, Irish bankers were no different and that must be addressed.

We need to be conscious about how terrifying this scenario would be if Ireland was on its own and did not have the comfort of the European Union. We should remember that as we go through this difficult time economically. If Ireland was isolated and using its own currency, it would have gone down. Iceland is an example of what could have happened and, therefore, the comfort the EU provides to us must be recognised, particularly as we face the challenges associated with the Lisbon treaty.

I refer to the experience of the AIB bail-out in 1985. I share many other people's thinking that the public interest was very badly served. It was always said banks would make money but that is not necessarily true nowadays. However, given the assistance provided by the State during this rocky period, it will not be long before they are profitable again. Rather than applying a charge for the State's involvement in the banking sector, which will assist the banks and the wider economy, why does the Government not opt to take a percentage of their profits? Financial institutions will be restored to profitability. Would Ireland's interests not be served by taking a percentage of profits rather than applying a charge? I expect the Government to always look after the national interest. Was this considered? If so, why was it rejected?

Like many people, I have experienced a steep learning curve regarding the financial world. I am beginning to wonder whether I know as much about credit default swops and so on as the people who oversaw them previously because there was not a great understanding of what they were about. We will all be more vigilant about these issues. It is difficult to know how to proceed but, despite the reservations and concerns of Members, we must work on this together and the national interest should always be served.