Seanad debates

Thursday, 16 December 2010

Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages

 

3:00 pm

Photo of Paschal DonohoePaschal Donohoe (Fine Gael)

I want to add to that and draw attention to section 4, which gives the special manager "sole authority over and direction of all officers and employees of the relevant institution". This means anybody working in the financial institution would be bound to obey the direction of the special manager in any area. Will the Minister clarify this? If the special manager asks an employee to carry out a particular task, legally that implies he will have to agree to doing so. I state this to emphasise the power being confined in the special manager.

I wholeheartedly agree with the point made by Senator O'Toole on section 6. What does it add to the Bill? Is the provision not just creating the near certainty that, if the Bill is triggered, a shareholder will contend the manager does not speak for him and that he disagrees with the direction the Government is taking? We have seen elsewhere that shareholders are sometimes willing to fight and do fight against Governments when they implement measures that are necessary to preserve the overall stability of the system. How can we say the special manager's decision will be taken to be the decision of the shareholders given that we know many shareholders will be resisting some of the measures in the Bill? It will not be in keeping with what will be happening in the real world if this Bill is ever implemented. Is stating the decision of the special manager will equate to the decision of the shareholders not just a time-bomb that will undermine the implementation of the legislation if it is called upon?

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