Brian Hayes (Dublin South West, Fine Gael)

I welcome the opportunity to address the Seanad on the Second Stage of the Bretton Woods Agreements (Amendment)(No. 2) Bill 2011. The purpose of the Bill, which is very short, is to enable Ireland to accept an amendment to the articles of agreement of the International Monetary Fund, IMF, which are incorporated in existing legislation, namely, the Bretton Woods Acts 1957 to 2011.

The amendment, which is known as the amendment on the reform of the executive board, arises in the context of a number of IMF governance reforms that were agreed by the board of governors in December 2010. At present, the five largest members of the IMF are entitled to appoint one executive director. The effect of the proposed amendment is that the executive board will in future consist only of elected executive directors, thus ending the category of appointed directors. It is expected that the amendment will facilitate restructuring of the Board on a more representative basis.