Ivor Callely (Fianna Fail)

A lot of good, law-abiding citizens are involved in companies who take risks. On occasion, however, because of one or two bad eggs, we use a sledgehammer instead of a simple hammer. This matter should be left to the Tánaiste together with the various professionals, researchers and other authorities that are available to her, including people such as the Director of Corporate Enforcement. I would like to think that they are taking a balanced approach to this legislation. Sometimes, however, we go a little bit too far in introducing legislation and giving powers to an individual, particularly with regard to search warrants and other such powers. I certainly concur with the Tánaiste's view on the basis that this is being done in conjunction with other authorities, agencies and all the other supports available to her Department through this appropriate and balanced legislation.

The third main part of the legislation seeks to make non-resident companies here compatible with the EU's companies code. This was the last point referred to by the Tánaiste.

The Bill responds to the lack of disclosures by directors of financial institutions in the past, which has come to light much to the public's dismay, disquiet and frustration. The former chairman of Anglo Irish Bank, in particular, seems to be public target number one as the person allegedly responsible for all the ills of the Irish banking sector and the current recession. To be fair, however, the former chairman is not responsible for all the ills of the Irish financial institutions or, indeed, for the global recession. I do not want to do anything that would pre-empt some of the current investigations and likely follow through arising from those investigations, other than to say that there is a public view - I think the Tánaiste is aware of it - of the activities of some of these individuals who have rocked the foundations of Irish financial institutions. They have caused considerable losses to the institutions and their shareholders, as well as affecting international confidence. It is necessary, therefore, for the Government to put in place the appropriate legislative measures to prevent a recurrence. Equally, the public wants to see those who have breached and abused their positions in financial institutions being held accountable.

Everybody is being bombarded by what is happening in the Irish financial sector and the economy generally, which is compounded by the world recession. We are getting lost in all the figures. At the end of the day, however, the public will welcome the Tánaiste's proactive stance in dealing with the Director of Corporate Enforcement and putting this legislation before the House. They may ask those of us who will be knocking on doors in the coming weeks why this was not done before now. I listened to the previous speaker, Senator Cannon, who was the leader of a political party in government for the past couple of years, and he posed a similar question. Equally, the public will ask him why he did not deliver and do something when he was in that position. They will be asking me the same question because people are frustrated and annoyed. The public wants to see the people concerned being brought through due and fair process. There is a view that there have been abuses, but we must await the outcome of that due and fair process. At that stage, appropriate action can be taken which is similar to and as robust as this legislation.

While one may have concerns about certain aspects of the Bill, the public would like to see the same type of appropriate legislative response concerning the penalisation of those held accountable for creating the need to bring such legislation before the House.

There is one other area with which we are all concerned and that is disclosure about connected persons. It is a very sensitive area and one of which me must be conscious. We must ensure that we have the appropriate consensus as we approach this issue. While I appreciate the proactive approach the Tánaiste adopted with regard to the Director of Corporate Enforcement, will she indicate what other representative groups she consulted on the legislation? Is she open to proposals or recommendations being made before Committee Stage by representative bodies or organisations which have an interest in the Bill?

In referring to connected persons I had intended to raise an issue connected to directors' loans as well as the matter of the so-called "golden ten". While I accept company law is the Tánaiste's area of responsibility, will she clarify issues relating to financial services? If one was to ask what prompted the introduction of this legislation, the words "Anglo Irish Bank" would immediately spring to mind. Issues connected to that bank are a cause of concern. For the purpose of the debate and to assist those who may be following it, will the Tánaiste indicate the reason for the Bill's current focus?

I have great admiration for the work being done by the Tánaiste and her team of officials in what must be the most turbulent period in the history of the Department. I congratulate the Department on taking a proactive approach to addressing the issues with which it must contend daily, while at the same time proactively seeking to secure foreign direct investment. I understand the Minister was engaged in such work last week.

The Director of Corporate Enforcement and acting Financial Regulator are also in turbulent, choppy and uncharted waters. I have great admiration for the acting Financial Regulator, Ms Mary O'Dea. Having been thrown in at the deep end, she has shown she has a firm grasp of the issues. I wonder why she was not appointed Financial Regulator much earlier.

In February this year, the Financial Regulator decided to require all banks to report directors' loans, including connected lending, in their annual accounts and establish a register of such loans which would be made available for view to the shareholders of the institutions in question. In accordance with the law, the banks had 21 days to make representations to the regulator on the proposals. These representations are being considered by the Financial Regulator and it is expected the new requirements will become effective by the end of May 2009.

While the Bill and the Financial Regulator's requirements will require the same disclosures regarding loans to directors, the latter's proposal differs slightly from that of the former regarding lendings to entities and persons connected to directors. Whereas the legislation only requires the disclosure of loans to connected persons granted on favourable terms, the regulator's proposals require disclosure of all loans. Its requirement that companies maintain a register is over and above company law requirements.

A great deal of good work is being done by the Tánaiste in the area of company law and by other authorities and bodies in related areas. I congratulate the acting Financial Regulator and everyone in her office as well as the Tánaiste and her officials on the work they are doing. I hope appropriate and strong legislative measures will be implemented to address the ills of which we have recently been aware.