Peter Mathews (Dublin South, Fine Gael)
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Question 116: To ask the Minister for Finance, further to Parliamentary Question No. 138 of 25 October 2011, his views on a matter (details supplied); and if he will make a statement on the matter. [33140/11]

Michael Noonan (Limerick City, Fine Gael)
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I take it the Deputy is referring to the ECB opinion on the Credit Institutions (Stabilisation) Bill 2010 of December 2010 which raised a concern about the position of the ECB as a creditor of the credit institutions that would be the targets of that legislation. The ECB also sought clarification that the effect of the various orders that can be made by the Minister for Finance under the Credit Institutions (Stabilisation) Act ["CIS Act"] would not impair the ability of the Central Bank or the ECB system to maintain the Eurosystem's operations.

My predecessor responded to the ECB pointing out inter alia that in order to ensure that any security held by the Eurosystem is safeguarded, section 5 of the CIS Act explicitly provides that nothing in the Act prevents the performance by the Governor or the Central Bank of their functions in relation to any credit institution authorised or regulated in the State or affects any obligation arising under the treaties governing the EU or the ESCB statute. I understand that as a matter of Irish law the reference to "obligation" extends to all of the State's obligations under those laws.