Willie Penrose (Longford-Westmeath, Labour)
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Question 121: To ask the Minister for Finance the new or amending legislation that arises from the EU/International Monetary Fund bailout; his plans for this legislation to be enacted before the general election; and if he will make a statement on the matter. [1370/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy is aware, the Credit Institutions (Stabilisation) Bill 2010 was published on 14 December 2010, completed all Stages in the Houses of the Oireachtas over the course of 15 and 16 December 2010 and has been signed into law by the President as the Credit Institutions (Stabilisation) Act 2010. The Act provides the legislative basis for the reorganisation and restructuring of the banking system agreed in the joint EU - IMF Programme for Ireland. It provides broad powers to the Minister for Finance (in consultation with the Governor of the Central Bank of Ireland) to act on financial stability grounds to effect the restructuring actions and recapitalisation measures envisaged in the Programme. The Act applies to banks that have received financial support from the State, domestic building societies and credit unions.

The Act is the first important step in putting in place an extensive Special Resolution Regime (SRR) that will provide for a comprehensive framework to facilitate the orderly management and resolution of distressed credit institutions. As agreed under the Programme, draft legislation providing for the introduction of a comprehensive SRR, consistent with best international practice and the evolving EU framework, is scheduled for introduction to the Oireachtas by end-February 2011.

The Credit Institutions (Stabilisation) Act 2010 also provides for the amendment of the National Pensions Reserve Fund Act 2008 to facilitate the State's own contribution to the EU/IMF Programme of Financial Support for Ireland over the next three years.

In addition to the Credit Institutions (Stabilisation) Act, the NAMA legislation will be amended to underpin the valuation and acquisition of land and development loans below a value threshold of €20m.

The Provisional Collection of Taxes Act 1927 effectively requires that the Finance Act must be enacted within four months of Budget Day. For this year's Budget Day of 7th December, the Finance Bill has to be signed by the President by 6th April. The Finance Bill 2011 will be published on 20th January 2011 and is scheduled to have passed all stages by the 25th February 2011.

The Social Welfare Act, 2010 has been passed. Provisions announced in the National Recovery Plan 2011-2014 in relation to the National Minimum Wage and the reduction of public service pension costs require legislation, and to this end the Financial Emergency Measures in the Public Interest (No. 2) Bill 2010 has been approved by both Houses of the Oireachtas.

In the National Recovery Plan 2011-2014, the Government sets out proposals for a range of budget reforms to underpin the sustainability of the Irish public finances into the future, including a Budget Advisory Council to provide an independent commentary on the Government's budgetary planning, by means of assessing the appropriateness of the budgetary stance and the aggregate targets being adopted; a medium term expenditure framework to ensure that public expenditure is managed within fixed, sustainable limits; and a Fiscal Responsibility Law to put key reform measures on a statutory basis. These commitments are also reflected in the EU/IMF Programme of Financial Support for Ireland. The Government intends to bring forward a Fiscal Responsibility Bill in the near future.

Other areas where it is at present envisaged that legislation will arise in the context of the EU-IMF Programme are detailed in the Memorandum of Understanding which was laid before the Houses of the Oireachtas on 14 December 2010. Many of the proposals concerned are already contained in the National Recovery Plan. These include measures related to the labour market including measures designed to reduce the risk of long-term unemployment; increases to the state pension age under the Government's National Pension Framework; and legislative changes to remove restrictions to trade and competition in sheltered sectors and to enhance competition in open markets.