Jim Mitchell
Ceist:37 Mr. J. Mitchell asked the Minister for Finance the position of the Governor of the Central Bank. [4728/01]
Priority Questions. - Central Bank Governor.
Article 19.1 of the Central Bank Act, 1942, states that "The Governor shall be appointed by the President on the advice of the Government." Last week the Government decided to seek the reappointment of the current governor, Mr. Maurice O'Connell, for a further term in office. A key factor in making this recommendation to the President was my desire that the current governor would continue in office to oversee the transition to the euro, which will be implemented early next year. As the 1942 Act provides for reappointment, no additional legislation is required. The governor has agreed to his reappointment to oversee the introduction of the new currency.
For how long has the governor been reappointed? Is it for a year or for a full term and, if so, what is the full term?
The governor has been appointed for a full term. In deciding the best course of action to take and cognisant of the Government's wish not to serve a full second term, my Department consulted the European Central Bank's legal services on the possibility of passing specific legislation which would enable the extension of the governor's current term. The view of the ECB was that Article 14.2 in the statute of the European system of central banks and of the European Central Bank, which provides the term in office of a governor of a national central bank shall be no less than five years, precluded such a possibility. However, there was and is no obstacle to renewing the governor's term for a further seven years. That is the course of action the Government proposed to the president. It is entirely a matter for the governor if he wishes to avail of the seven year term. It is the desire of the Government that the governor, Maurice O'Connell, would be the person in situ for the changeover to the euro which occurs on 1 January next year. The dual circulation period ends on 9 February. It is the desire of the Government that Mr. O'Connell would remain as governor to oversee the transition. The simplest thing to do is to reappoint the governor for a full term. However, the governor's wish is not to serve a full term.
The governor has been appointed for a further seven years.
Yes.
He knows of the Government's desire that he would not serve out the full seven years.
There is no desire by the Government that he would not serve the full seven years. The governor, Mr. O'Connell, expressed reluctance to serve a full second term. He has been appointed in line with the Central Bank Act, 1942, for the full seven year term. It is entirely a matter for him as to when he wishes to retire.
Has this decision been taken in the context of any resolution about the future role of the Central Bank? Has any decision been taken on whether the Central Bank will be the single regulator or whether there will be a separate single regulator?
There was no cross-fertilisation of ideas on whether Mr. O'Connell should be the governor for the next seven years or on anything relating to the single regulatory authority. I hope to be in a position later today to announce the agreement between myself and the Minister for Enterprise, Trade and Employment on the single regulatory authority. There is no connection between my advice to the Government to ask Mr. O'Connell to serve a second term, although the media have referred to that.
Question No. 38 falls because it is a Priority Question and Deputy Ulick Burke is not present. That completes priority questions. We now come to other questions.
Question No. 38 not answered.