Michael Noonan (Limerick City, Fine Gael)

The right to appeal is contained in this section and it is an important right. It is important to balance the challenge with the need to ensure that the resolution of an institution in difficulty can take place efficiently and effectively. A delay in implementation could undermine the usefulness of the resolution. Therefore, the Bill provides definite lines of challenge within the procedures for the making of orders and allows for judicial review and appeals.

However, the timeframe for all sources of challenge is limited to ensure that resolution measures can be implemented in a timely manner to avoid uncertainty regarding outcome for all shareholders, including depositors. There is a right of appeal but the window to appeal is short because the Central Bank will not be moving in to resolve an institution unless there is a major difficulty. Resolving it is not open-ended from a time point of view; it must be done pretty quickly. If one reflects on the events of the past 12 months, one will find situations where from newspaper reports it appeared the courts were being used to obstruct the authorities in taking action in certain cases. It is a question of balancing the right of appeal with the efficacy of the intervention. The balance here is about right.