I move amendment No. 5:
In page 9, between lines 5 and 6, to insert the following subsection:
"(2) The Authority may not issue or enter into financial guarantees.".
The restrictions relating to borrowings in the Bill should be extended to guarantees. Guarantees are not mentioned and protection is not provided.
We have just agreed it will be necessary, from time to time, to borrow, with the permission of the Minister and the agreement of the Minister for Finance. The inclusion of a clause suggested by Deputy O'Keeffe would militate against the ability of the Authority to handle its affairs as it thinks most prudent in the circumstances. For example, the fact that it is generating much of its own revenue does not mean to say that its clients would pay on the button. There could be a time lag or it may be necessary for the chief executive to take such decisions as he thinks are prudent. It would constrain the situation if the Deputy's amendment were accepted.
It restricts and controls the borrowings, but the guarantees are open-ended.
However, one would be stipulating to the chief executive how the business of the organisation should be run. He should be allowed to choose such instruments as are most prudent in the interests of the organisation and cheapest at the time. For a body that is looking at most for 25 per cent of its revenue from the State it is not a big risk.
