Martin Mansergh (Tipperary South, Fianna Fail)

I will deal with amendment No. 4 in general first. Section 6 of the Bill allows the Minister for Finance to transfer shareholdings or other assets to the fund. Paragraph (c)(5A) is the counterpart to that provision, allowing the commission to accept funds and other assets. Any shareholding or other interest transferred by the Minister under the powers provided in section 6 of this Bill will count against the normal annual Exchequer contribution to the fund of 1% of GNP. The provision will allow the Minister to transfer shareholdings in a semi-State body into the fund. However, the provision would also allow a different scenario for recapitalising the banks where the Minister for Finance would make the initial investment in the banks under the Credit Institutions (Financial Support) Act 2008 and subsequently transfer the shareholding to the NPRF. This is a contingency provision just like the provision allowing the Minister for Finance to direct the commission to underwrite a share issuance in a listed credit institution. There are no plans to use the provision but it is generally a wise move when drafting legislation to allow the possibility of an alternative approach to an issue.

The amendment seeks that approval of both Houses would be required when the Minister transfers funds or assets to the commission other than from the central fund. To the extent that this power is used in the context of recapitalisation, the Minister would also be giving a direction to the commission to invest in a listed credit institution in the extraordinary circumstances envisaged in section 8. The Minister for Finance has undertaken to inform the House in advance of any direct investment in a listed credit institution subject to any requirements of confidentiality. He made the point that he could not guarantee it in all circumstances. I am satisfied that the concerns motivating the amendment have been adequately addressed and I regret that I am unable to accept it.

The €30 million is a standard arrangement fee payable by a body receiving an investment.