Michael Noonan (Limerick City, Fine Gael)

It is section 106 that the Senator is addressing. That section states "The Bank may, after consultation with the Minister, issue a code of practice ...". It is the bank that issues the code of practice, not the Minister, but there is consultation with the Minister. Normally I find in legislation such as this when one is dealing with the bank or the regulator that while the policy is being decided there is consultation with the Minister but once the policy is put in place in law the bank or the regulator is independent in the exercise of its functions. Therefore, it is that procedure. It is not the Minister who issues the code of practice, it is the bank.

The section states, "The Bank may, after consultation with the Minister, issue a code of practice relating to the operation of this Act including the exercise of any powers under this Act." It is reasonable that as the Minister is the proposer of this legislation, regarding codes of practice that would run from it that are being put in place by the bank, there would be consultation with the Minister in advance since the Minister is the proposer of all the legislation. It is like the metaphor of the cow and calf - the code of practice is the calf. If the Minister is the proposer of the legislation, then he has a role in subsidiary legislation like codes of practice but once they are established, he is out of the picture and the bank acts independently.