Marie Sherlock (Labour) | Oireachtas source

This is a very important Bill. I welcome, in particular, the amendment to the Credit Institutions (Stabilisation) Act, which is both necessary and timely and the Labour Party will be supporting it. I also welcome the amendment to the Credit Union Act. It is important to put the ability of credit unions to hold their AGM online on a permanent footing and I would encourage all of them to do so because it is means of encouraging more of their members to be active in their credit unions. It is a reminder that credit unions are very democratic organisations. There is no such thing as customers in credit unions, only members and in that context, the facilitation of an AGM online is very important and will hopefully encourage more members to become involved.

I want to record my deep unease with the proposal to extend the number of consecutive terms for members of the Irish Fiscal Advisory Council, IFAC. A period of 12 years seems like an excessive length of time to serve on any board or council but particularly on the IFAC. It jars with the notion of a healthy turnover of participants on the board and potentially conflicts with the principle of trying to ensure a fresh flow of ideas onto a board or a council. From what I understand about the equivalent advisory councils in most other EU member states, Ireland will stand apart in allowing three consecutive terms. The UK's advisory council, for example, has a five-year term that is renewable just once, in Sweden, it is a three-year term that is not renewable at all, in France it is a five-year term that is renewable once, or not at all because there is a gender balance requirement, and in Finland it is a four-year term that is not renewable. These are just four examples but when one looks at the remainder of the EU member states it appears that terms are renewable up to two terms only. It is a concern if Ireland were to stand apart from other member states in terms of its practice with regard to appointing members to the IFAC.

I want to make it clear that I am not having a cut off the Minister of State here because there is a wider issue with regard to the Department of Finance. The question must be asked as to why the Department is bringing this proposal forward now. I understand that the existing council is facing into a situation where it will be reduced to just three members at the end of the year.Why has the vacancy on the council been left open for almost 11 months? The vacancy was advertised on 6 November but I am not sure if that was the first advertisement this year. There is a wider question as to the Government's approach to the IFAC. The then Government was very enthusiastic about the IFAC when it was established in 2012 but one must question the Government's current attitude towards the council. The council has an important function in advising the Government on fiscal policy but it also has a broader role in terms of providing analysis, dissemination of information and an understanding of Ireland's fiscal stance, our compliance with budgetary rules and our performance. While I would not agree with all of the council's recommendations, its establishment in 2012 was a very welcome and hugely important development. Any of us who were observing fiscal policy closely in this country will attest to the disjointed and very poor availability of data on fiscal policy making and on understanding the fiscal stance of this country. The IFAC has advanced and progressed our understanding of Ireland's fiscal and budgetary stance but one must question the Government's attitude towards the council and the level of encouragement and support provided to it. If the Government believes there is an issue with regard to the council's statutory functions, it should bring forward recommendations on same. When I read that the council is currently facing "exceptional continuity challenges", I ask myself whose fault that is and I believe it is the Government's fault because it has not been proactive in ensuring it is attracting candidates to the council. There are many macroeconomists here in Ireland and many macroeconomists from Ireland who are working abroad who I believe would be interested in serving but they must be attracted in; they have to be asked. There is another way, rather than extending membership of the council to three terms. I wish to be very clear that I am not in any way casting any aspersions on or discrediting those who are currently serving. I know that those who have been serving have done so diligently and have given much of their time but I do not think a 12-year term is good practice for a Government-appointed council. Another way of ensuring a healthy and consistent flow of qualified persons onto the council must be found.