Jim Walsh (Fianna Fail) | Oireachtas source

Last night's process was far from satisfactory, but I accept there was a risk of flight for bondholders in IBRC and, as a consequence, action needed to be taken. However, I was taken by a comment made in the Lower House by Deputy Stephen Donnelly, who asked why the Bill could not have been more narrow and focused to deal with that risk exposure, rather than extending it to other areas. I refer in particular to section 6, where it appears to me - I am not a lawyer - that a very selective approach has been taken which might be prejudicial to current and future litigants who may take action against IBRC, now NAMA, although their continuing actions in the other direction are endorsed by the Bill. It strikes me - not to mention the ultra vires point made by Senator Barrett last night - that this makes the Bill highly susceptible to a constitutional challenge. If the Bill is successfully challenged, the risk exposure to the bondholders then becomes very focused and a reality for us.

Has the liquidator appointed to this company any connection as auditor or consultant to any of the failed financial institutions? It would be regrettable if the Leader answered in the positive, which I suspect he may have to do.

Last night we copperfastened bank debt as sovereign debt. It was said last summer at IMF and EU level that the need to separate bank debt from sovereign debt was essential if countries were to recover. We have gone in the opposite direction in that, as I perceive it, that cannot happen. I was seriously concerned last night when a Government Member, whom I will not embarrass by naming him, said this was about alleviating difficult political decisions. This could be the purpose of the Bill. I understand there will be a saving of a couple of billion euro a year in interest rates as we pile the debt out and transfer it to our grandchildren and to future generations. It is not a responsible action for us to take. It is certainly not one I will subscribe to in the future, and I hope my party will not subscribe to it either.