Brian Lenihan Jnr (Dublin West, Fianna Fail)

Senator Coghlan has given a good example. Although I have a substantial shareholding, for example, in Bank of Ireland or AIB, the fact remains that there are questions about the exercise of those voting rights in a context where I am making a further investment in terms of the stock exchange procedures and rules that apply to takeovers etc. I say to Senator O'Toole, that is the purpose of the exclusion of legislation. There must be clarity about this particular power.

One of the crucial points made by the European Commission, and by the ECB and the IMF in their discussions, and one in which I personally participated in the particular discussion, was the need for speed of execution in these banking matters. We cannot simply state that we will capitalise bank X to the extent of, say, €4 billion and in two months time there will be a shareholders meeting about this. Given the perilous condition of the Irish banking system, that is not credible on the markets. We need a speed of execution here and that is why this section empowers the Minister for Finance simply to put money into the institution notwithstanding the various stock exchange rules, the Companies Act rules or the provisions of memoranda or articles of association.

A power of this type must be exercised subject to the terms of this statute and subject to the terms of the Constitution. Of course, judicial confirmation is required of the exercise of the power. Even apart from that, it is always subject to the Constitution and it must always be exercised, like all powers, in a manner which is proportionate to the need to secure the objectives of the statute. It is not a power that can be used at large or willfully against financial institutions that are thriving. It is a power that can be used where an institution is exposed in its capital base, and the Minister can then make a variety of direction orders in these circumstances to give complete satisfaction that this matter can be dealt with expeditiously.