Alan Kelly (Tipperary North, Labour) | Oireachtas source

I oppose these amendments. We do not believe it is appropriate to accept amendment No. 7 as there are already sufficient safeguards in the legislation relating to the control of CIE's borrowing. Section 2 updates section 20 of the Transport (Re-Organisation of Córas Iompair Éireann) Act 1986 which deals with the power of the board to lend money to its subsidiaries. It is important that this flexibility is available to the CIE group. In addition, the proposed new subsection (4) provides that the amounts borrowed by the board and the companies cannot exceed the ceiling of ¤300 million established under the amended section 28(1) of the 1950 Act. This borrowing requires the consent of both Ministers.

I do not consider amendment No. 8 appropriate. For corporate governance reasons it is the role of the CIE board to oversee lending within the CIE group, provided the ¤300 million ceiling for non-capital purposes is not exceeded, as provided for under subsection (4). I am opposed to amendment No. 9 because I do not believe there is a need for any additional safeguards for the giving of security for borrowings, as the overall control of the CIE borrowing ceiling is set by both Ministers.

Given that the National Transport Authority, NTA, is mentioned in the amendment, it is important to point out that the NTA is a regulator, not a shareholder. Including it in the middle of this legislation would change that role, and that is not the role of the NTA. I understand what the Senator is trying to provide for but I believe the checks and balances I have outlined are sufficient.