Mary White (Fianna Fail)

He went on to say that his criticism was that NAMA had been led astray again by the banks. It will be interesting to hear what the Minister has to say in that regard in his summing up.

We saw from the reports of Professor Honohan and Regling and Watson that there were serious inadequacies and failures in our banking regulatory system. The whole purpose of this Bill is that we would have credibility at home and internationally with reform of the Central Bank. It represents a significant package of changes which will establish a lending framework to repair and improve the supervision of our financial system. The point is to create a Central Bank that will take on the responsibility of ensuring the stability of the financial system. It is a three-stage legislative programme to create a new, fully integrated framework for financial regulation, meaning everything will come under the Central Bank and its Governor will have ultimate responsibility so no cracks can arise in the system as we progress.

There is a fear that the Minister could damage the credit unions in this Bill. It is well worth repeating on the record what he said in this regard earlier in the debate:

I am a strong supporter of credit unions and I recognise their special place in communities all over this country and their civic-minded nature. The Government is all too aware that banks have let us all down very badly whereas, throughout this period, the credit union movement has continued to meet its mandate and to provide a very valuable community-based service to its members. Let me reiterate that credit unions are, and will remain, a very important part of the financial sector in Ireland. The credit union movement continues to play a critical role in meeting the financial needs of our communities. The Government is fully committed to a financial and regulatory system in which credit unions can develop and expand their activities.

The real issue with credit unions is that they would prefer if a decision was not made on section 35 in this Bill but that we would wait until the review process, which I believe is currently out to tender. This makes common sense. Many Members have been approached by representatives of credit unions, who call for the legislation to be deferred until the strategic review, which the Minister requested and is setting up, returns its findings in December 2010, as is expected.

The review will have two parts, first, a risk assessment that will determine the appropriate financial management required for credit unions and, second, the strategic options for the future of the credit union movement. It is the belief of the credit union movement that only when the findings of the strategic review are completed should the appropriate powers be directed to the registrar.

On behalf of all on both sides of the House, as Senators Ross and Butler said earlier, I wish to state that the Minister has been exemplary in his dedication to cleaning up the financial mess that our little country-----