John Gerard Hanafin (Fianna Fail)

I believe there is merit in Senator Bacik's proposal in connection with the French model whereby a credit mediator has been appointed to keep a watchful eye on how the banks are performing, with a view to ensuring best possible practice, and to publicise information in this regard. We must face the fact that under the Basel round of agreements the tier 1 capital ratios for the banks has increased and, therefore, less money will be available for borrowing. This will effect borrowing into the future.

It may be - I fear this is the case - that some banks trading in Ireland, in particular banks caught up in sub-prime lending in the UK, including the Royal Bank of Scotland which has subsidiaries in Ireland, Ulster Bank and First Active, are using Ireland as a piggy-bank whereby they are taking in deposits but are not lending. If that is the case this could be highlighted by the appointee in this area. This could be done not necessarily by way of a new appointee but by way of giving an additional responsibility of a person in an existing position. There is merit in Senator Bacik's proposal, although I do not believe it is necessary to achieve this by way of amendment.