Bernard Durkan (Kildare North, Fine Gael)
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Question 83: To ask the Minister for Finance the extent to which legislation arising from the Bretton Woods Agreement has been amended in recent years; the purpose of such amendments already undertaken or proposed; the extent to which neighbouring EU member states or others have legislated on these or related issues; and if he will make a statement on the matter. [27891/11]

Michael Noonan (Limerick City, Fine Gael)
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The Bretton Woods Agreements (Amendment) Act, 2011 was enacted earlier this year in order to enable Ireland to convey to the International Monetary Fund (IMF) its acceptance of amendments to the Articles of Agreement of the IMF, which were approved by the Board of Governors of the IMF in 2008. The relevant amendments relate mainly to the arrangements for the appointment of Alternate Executive Directors, the investment of profits from gold sales by the Fund and increases in the voting power of low income countries.

In July 2011, the Government approved the drafting of the Bretton Woods Agreements (Amendment) (No.2) Bill, 2011 to provide for acceptance by Ireland of a further amendment to the Articles which was approved by the Board of Governors in 2010. This amendment relates to reform of the IMF's Executive Board. It provides that, in future, all Executive Directors will be elected in contrast to the present position whereby, in the case of the five largest member countries, Executive Directors are nominated. The Bill is currently being drafted and is included in the Government's legislative programme for the current Dáil session.

Relevant legislation was enacted by the required number of IMF members including EU member States to enable implementation of the 2008 Reforms by March 2011. As regards the 2010 Reform, the related resolution of the Board of Governors calls on IMF member States to take the necessary steps by Autumn 2012.

The amendments to the Articles of Agreement are required to be implemented before the changes to members' quotas which were concluded in 2008 and 2010, as part of IMF governance reform, become effective. (A country's IMF quota is broadly based on its relative position in the world economy and determines its maximum financial commitment to the IMF, its voting power and has a bearing on its access to IMF finance.) As the Deputy may be aware, Ireland was allocated increases in its quota as part of both reviews. These increases in quota have the effect of reducing the cost of Fund borrowings by Ireland under the EU/IMF Programme of Financial Support. While the 2008 quota increase became effective in March 2011, the 2010 increase will not come into effect until the 2010 reforms are accepted by the required number of IMF member States.

Apart from the aforementioned legislation, an amending provision to the Bretton Woods legislation was included in the Finance Act, 2010. The purpose of this provision was to enable Ireland to participate in a mobilization of resources for the IMF following the global financial crisis. However, as Ireland is now in receipt of assistance from the IMF, this does not arise at the current time.

Question No. 84 answered with Question No. 78.