Oireachtas Joint and Select Committees

Wednesday, 18 February 2015

Committee of Inquiry into the Banking Crisis

Context Phase

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I thank Mr. Buti. I will follow on from that. The Commission completely changed the direction in the 2002 recommendation. I have a question on the backdrop there. Mr. Buti mentioned in his presentation that the Commission found mortgage interest relief on property as a negative and yet in the 2002 budget the then Government re-introduced mortgage interest relief on rental or investment properties for the first time since 1998. The question I am asking is did the criticism from the Irish Government on the 2001 recommendation influence the Commission's decision in terms of the 2002 recommendation?

Mr. Buti also makes reference to this. In his presentation, he states, "In retrospect, the assessment of whether the 2001 Council recommendation to Ireland was a good idea or not is less clear cut; even controversial." It would appear as if the measures that were brought in in 2002 were even more pro-cyclical in terms of mortgage interest relief and yet the Commission did not make the same recommendation.

As an adjunct to that question, Mr. Buti also states in his report-----

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