Dr. Donal Donovan:

I am not sure I would quite go as far in that direction. The absence of appropriate financial regulation, and I think we all agree on that at this stage, was an important factor underlying the banks disaster and it led to all this lending for property, etc. that was too risky and uncontrolled. Here is a key point, and I think I share the Deputy's view, that this provided a false picture of the strength of the Irish economy because we were seeing these growth rates of 5%, 6% or whatever per cent in the first half of the decade that were not based on underlying export growth as they had been in the years prior to the millennium - the true period of the Celtic tiger perhaps. These growth rates were heavily based on construction - on a construction boom and on a construction bubble. In that sense, the rosy picture of the IMF, painted by the IMF which said the economy seems to booming along, continuing to grow and still among the highest growth rates in Europe, if not highest, I agree with the Deputy that that in itself was based on a lack of appreciation of the property bubble nature of this. Then one can say that the property bubble nature of this was in turn a good part influenced by the approach to financial regulation. In making those connections, yes, the rosy picture was linked indirectly but definitely to the deregulation.