Jim Walsh (Fianna Fail)

This is an important point. While I am aware that exclusion from boards is virtually automatic in the case of persons who become bankrupt, subsection 2(b) rolls back the barrier considerably. In the current economic climate ordinary people have extended themselves, primarily due to poor banking practices, and now find themselves stretched. They may, therefore, have to come to an arrangement with their bank or creditors. How will this provision apply to such persons? For instance, an agreement under which an individual arranges with a bank to pay interest only on a loan for two or three years, rather than meeting the capital and interest repayments, amounts to an arrangement with a creditor. It is not necessary to debar a person who reaches such an agreement from membership of a public body. Given that, under this provision, a person with an arrangement with a creditor is automatically disqualified from membership of the IFI, any such person will be compelled to resign from the body, which would be a matter of some embarrassment and consequence. I ask the Minister to examine this matter before Report Stage to ascertain whether that is the case. It appears to be the effect if one takes a literal interpretation of the text. I ask the Minister of State to clarify the matter.