Mary Lou McDonald (Dublin Central, Sinn Fein) | Oireachtas source

This is an increasingly biblical encounter. We have had the creation and hellfire and brimstone. I would like to pursue the same theme as Deputy Mathews. The phrase that jumped out at me from the Governor's presentation was the desire not to take other decision makers too far out of their comfort zone. That is a revealing comment from his point of view. I have two essential queries to put to him, the first of which relates to the promissory note. He stated at a previous committee hearing that as a central banker, he cannot envisage circumstances in which the promissory note is not paid within the central banking system. He went on to say that if that scenario were to unfold, the initiative would have to come from elsewhere. This is important and I underline that fact because it should not be taken from this meeting that non-payment of the note is simply not an option. He is saying, as a central banker, that within that system he cannot envisage non-payment but he is conceding that there is a political scenario and a broader scenario within the European system where non-payment is possible without the hellfire, brimstone and catastrophe one might envisage. I would like him to set out for us how it is that we do not pay because it is not my strong view that it is not our debt and not another cent should be paid in respect of the promissory note. Will he sketch out the other actors and the other initiatives that need to happen to ensure we do not have to pay the note? That is the first challenge to him.

The second also relates to the comfort zone of decision makers. The Governor referred to delivering his deliverables. His deliverables, with all due respect, sound lame if it is a case of protocols and listening to conversations between bankers and some unfortunate who cannot meet his or her mortgage repayments and is laden down with debt. It strikes me that the Central Bank is not prepared to press banks beyond their comfort zone and into the zone of reality, as set out by other members, where it is not a case of a blanket write-down. However, what is required is bankers facing reality and the reality faced by tens of thousands of families that will never be able to meet their mortgage debt and that cannot be allowed to be left stew in the juices of a pretence that somehow extend and pretend is okay. That is not okay. How will the Governor move the banks out of their comfort zone? Will he set out the alternative scenario where we do not pay the promissory note?