Order of Business (Continued)
  Credit Institutions (Stabilisation) Act 2010: Motion

Friday, 14 December 2012

Dáil Éireann Debate
Vol. 786 No. 4

Question put: "That the proposal for dealing with No. 4 be agreed to."

The Dáil divided: Tá, 66; Níl, 38.

Tá	Níl
Bannon, James.	Adams, Gerry.
Breen, Pat.	Broughan, Thomas P.
Butler, Ray.	Browne, John.
Buttimer, Jerry.	Calleary, Dara.
Byrne, Catherine.	Collins, Joan.
Byrne, Eric.	Collins, Niall.
Carey, Joe.	Colreavy, Michael.
Coffey, Paudie.	Cowen, Barry.
Conaghan, Michael.	Crowe, Seán.
Conlan, Seán.	Daly, Clare.
Connaughton, Paul J.	Doherty, Pearse.
Conway, Ciara.	Dooley, Timmy.
Coonan, Noel.	Ellis, Dessie.
Coveney, Simon.	Grealish, Noel.
Creed, Michael.	Halligan, John.
Daly, Jim.	Healy, Seamus.
Deenihan, Jimmy.	Higgins, Joe.
Deering, Pat.	Kelleher, Billy.
Doherty, Regina.	Kitt, Michael P.
Donohoe, Paschal.	Mac Lochlainn, Pádraig.
English, Damien.	McDonald, Mary Lou.
Feighan, Frank.	McGrath, Finian.
Flanagan, Charles.	McGrath, Michael.
Griffin, Brendan.	McLellan, Sandra.
Harrington, Noel.	Martin, Micheál.
Harris, Simon.	Ó Caoláin, Caoimhghín.
Hayes, Brian.	Ó Cuív, Éamon.
Hayes, Tom.	Ó Fearghaíl, Seán.
Heydon, Martin.	Ó Snodaigh, Aengus.
Hogan, Phil.	O'Brien, Jonathan.
Humphreys, Heather.	O'Dea, Willie.
Keating, Derek.	O'Sullivan, Maureen.
Kehoe, Paul.	Ross, Shane.
Kyne, Seán.	Smith, Brendan.
Lyons, John.	Stanley, Brian.
McCarthy, Michael.	Tóibín, Peadar.
McGinley, Dinny.	Troy, Robert.
McLoughlin, Tony.	Wallace, Mick.
Maloney, Eamonn.
Mathews, Peter.
Mitchell, Olivia.
Mitchell O'Connor, Mary.
Murphy, Dara.
Murphy, Eoghan.
Nash, Gerald.
Neville, Dan.
Nolan, Derek.
Ó Ríordáin, Aodhán.
O'Donnell, Kieran.
O'Donovan, Patrick.
O'Mahony, John.
O'Reilly, Joe.
Perry, John.
Phelan, Ann.
Phelan, John Paul.
Rabbitte, Pat.
Reilly, James.
Ring, Michael.
Ryan, Brendan.
Spring, Arthur.
Stanton, David.
Timmins, Billy.
Tuffy, Joanna.
Twomey, Liam.
Wall, Jack.
Walsh, Brian.

Tellers: Tá, Deputies Paul Kehoe and John Lyons; Níl, Deputies Seán Ó Fearghaíl and Aengus Ó Snodaigh.

Question declared carried.

Credit Institutions (Stabilisation) Act 2010: Motion

Minister for Finance (Deputy Michael Noonan):   I move:

That Dáil Éireann resolves for the purposes of section 69 of the Credit Institutions (Stabilisation) Act 2010, that with effect as on and from the date of this Resolution, in subsection (1) of the said section 69 for the words '31 December 2012' there shall be substituted the words '31 December 2014'."

The motion before the House seeks to have the period of effectiveness of the Credit Institutions (Stabilisation) Act 2010, known as CISA, extended for a period of 24 months up to 31 December 2014. Section 69 of the Act provides that the Act, other than sections 51 and 67, will cease to have effect on 31 December 2012 or a later date substituted by resolution of both Houses of the Oireachtas. The motion, accordingly, seeks to substitute "31 December 2014" for "31 December 2012".

  For the benefit of the House, I will set out the background to the need for CISA. The rationale for the CISA legislation is expressed in the detailed set of recitals included in the Act. They highlight the adverse impact of the banking crisis on the economy and the need in the public interest for strong powers to resolve the threat to the stability of the financial system generally. The Preamble to the Act also stresses the necessity for the functions and powers provided under the Act to reorganise the guaranteed domestic credit institutions in the context of the National Recovery Plan 2011-2014 and the European Union-IMF programme of support for Ireland. The Preamble also reiterates the basic justification for the very substantial financial support provided by the State for the banking system. This is to make certain that these institutions continue to meet their financial and regulatory obligations in order to maintain public confidence in the banking system and, in particular, the security of deposits. The banking system and the economy have faced and continue to face extraordinary and exceptional challenges. There is a strong public interest in the continued availability of the extensive ministerial powers included in the Act, the details of which I will outline to the House.

  The House is aware that CISA provides broad powers for the Minister for Finance to act on financial stability grounds to effect swift restructuring actions and recapitalisation measures as envisaged in the programme agreed with the external authorities. The purpose of the bank restructuring measures set out in the joint programme is to ensure the sector is proportionate to the size and credit needs of the economy.