Paschal Donohoe (Fine Gael)

There are two other points relating to section 7, with the first being section 7(5)(c), which states: "the Minister has reasonable grounds for believing that confidentiality with regard to the proposed direction order, or the possibility of the making of a direction order, would not be maintained and that the breach of such confidentiality would have significant adverse consequences". What experience have we had to this point which has made the Minister deem it necessary to refer specifically to confidentiality? To be clear, this seems to be the confidentiality between the Minister and the financial institution.

The second point relates to section 7(1)(d) which states: "making a specified alteration to the relevant institution's memorandum of association and articles of association (including, without prejudice to the generality of the foregoing, the alteration of the rights of shareholders or any class of shareholders)". This is to emphasise the import of what this legislation involves. I understand the point that this legislation is to be wielded by the Government in exceptional financial circumstances. I hope we have this right because when the Government looks to wield this power, it should be able to do so. This section and others should not end up leaving the entire process snared in a legal challenge.

On Second Stage I made the point that when equivalent legislation was triggered in other jurisdictions, it led to immediate legal challenges. With the broadness of the conferred power, it appears inevitable that legal challenges will be taken, although I hope they are not.

My questions relate to confidentiality but also emphasise the point relating to section 7(1)(d). I do not want someone to look back at the debate on this legislation in years to come, as brief as it will be given that we are discussing historic legislation, and for it to be said that this matter was not debated or picked out as something that could be challenged at some future point.