Paschal Donohoe (Fine Gael)

In a way I wish to pick up on what Senator O'Toole said about the independence of the Central Bank from any explicit political guidance. Will the Minister explain further what this section means? The phrase "may from time to time specify a relationship framework in writing to govern the relationship between the Minister and Governor" is ripe for abuse in the future. Section 7(2) states: "the Minister, having consulted with the Governor". That is made clear throughout the Bill. This subsection, however, appears to give the Minister the ability to issue some form of written guidance to the Central Bank and the person occupying the role of Governor. It is difficult to see how the ability to issue that kind of a guidance is consistent with what section 5 is about, namely, to seek to maintain the independence of the Central Bank.

I listened with interest to the interview the Minister gave on "Morning Ireland" during the week. He spoke about the review of the Department of Finance and what was learned. He referred to the economic unsustainability of the political guidance that was given to Departments and to the entire system. Given that those kinds of mistakes were made in the past, is there not a real danger that a mistake like that could be made by allowing section 6 to stand?