The Dáil has passed all stages of the Credit Institutions (Stabilisation) Bill 2010, which gives wide powers to the Minister for Finance to reform and restructure the banking sector.

The Bill was passed this evening by 78 votes to 71. It now goes to the Seanad, where it will be debated on Friday.



The Opposition parties had objected to the proposal to pass all stages of the Bill by 10pm.



During the debate, Minister for Finance Brian Lenihan said the provisions of the Bill represent an intensification of the banking measures already implemented by the Government.



Mr Lenihan said the Bill gives the Minister for Finance power to appoint a manager to take over management of an institution.



He said the primary duty of all directors of all institutions will be to the Minister for Finance and not to the company.



Fine Gael leader Mr Kenny called for the Dáil to be recalled on Tuesday to discuss the measures.



Fine Gael Finance spoksperson Michael Noonan told the Dáil it was a Bill to empower the Minister to do what he likes with the banking sector and that it could not be dealt with in the time allocated.



Fine Gael's Olivia Mitchell said the Bill was draconian and more time was needed to discuss it.



Labour Finance Spokesperson Joan Burton said the Bill was too little, too late and the Government was trying to close the door after the horse has bolted.



She said the transfer of powers in section 53 will empower the Minister for Finance to override acts of the Oireachtas and the country will be governed by ministerial dictat.



Her colleague Pat Rabbitte said he would like to know why the Minister for Finance wants to be a one-man legislature.



Sinn Féin Finance Spokesperson Pearse Doherty said the legislation is underpinning the bankrupt strategy of the Government.



Mr Doherty said bank debt cannot become public debt and it was immoral for taxpayers to bail out the 'gamblers at the banks'.



He later said the Government was 'raping' the National Pension Reserve Fund to prop up the banks.

Govt wins vote on rescue package



Earlier, the Dáil passed the measure approving the EU-IMF deal for Ireland by 81 votes to 75.



Minister Lenihan said that it was not envisaged that the country will need the extra year to reach a deficit 3% of GDP, as provided for under the terms of the agreement.



Mr Lenihan said the measure would be needed only if the more cautious outlook on economic growth came to pass.



He said it mystified him why any party would vote against the deal and said it was laughable to suggest that Ireland could get a better deal from the IMF.



Mr Noonan described the EU-IMF deal as a 'downright obscenity'. He said the country's debts were once manageable but once the banks were added it was no longer sustainable.



Taoiseach Brian Cowen said Dáil approval of the agreement would send a strong signal even if was not strictly legally necessary.



Labour leader Eamon Gilmore said his party will seek to renegotiate the deal with the EU and IMF after the next election.



He said there was agreement that the public finances needed to be brought under control, but with a jobs and growth strategy.



Mr Gilmore described the vote as a cynical exercise in Fianna Fáil tribalism and another example of the political posturing that could be expected during the election.



He said the IMF was reported as having some reservations about parts of the deal because groups of debt holders will not be paying.



Elsewhere, MPs at Westminster have approved Britain's bilateral loan to Ireland.



Britain is offering Ireland £3.25bn as part of its £7bn contribution to the EU/IMF international bailout.

