Oireachtas Joint and Select Committees

Thursday, 1 February 2018

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

European Union Matters: Commissioner Valdis Dombrovskis

9:00 am

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

Thank you. In the short time that is left I wish to refer to your opening remarks, Mr. Dombrovskis. You have stated that Ireland's recovery has been fast-paced and broad-based. It has been fast-paced but there remains significant disadvantage in the country, especially in the regions, as outlined by Senator Conway-Walsh. A significant number of the people we represent have not enjoyed any lift in their quality of life. Much work remains to be done. I would not like that statement to go without comment.

You said in your opening statement, Mr. Dombrovskis, that the performance of the banking sector has returned to normal. It is far from normal. Small businesses cannot get banking loans. I presume you are aware of the tracker mortgage issue in this country. Significant numbers of people have not been paid or put back on the correct rates. Banking is far from normal. If fact, if something is not done in banking we will get back to a situation where the banks will act as recklessly as before.

You referred to the broad tax base. Our corporate tax continues to be talked about in Europe. It is central to our economic well-being and development. We would not like to see interference from Europe that would in any way damage our prospects of being able to secure further outside investment in the country.

You referred to banking union, Mr. Dombrovskis. This committee has written several times to Mario Draghi in respect of his appearance. I have written to him on a personal level in respect of the tracker mortgage issue. His response has been quite pathetic in terms of understanding the issues we face and our efforts to deal with them.

Reference was made to non-performing loans. You said that the resilience of the Irish banking sector has improved significantly. It has not. It is living on taxpayers' money. A vast amount of money was paid in by the Government to keep the banks afloat at a time when Europe did not do many favours for this country by insisting that we could not burn the bondholders. That is what has us in this situation that we are not in. The Commission is pushing for non-performing loans to be dealt with. However, it has to understand that, up to recently anyway, the banks completely ignored country-specific recommendation No. 3, which you cited earlier, Mr. Dombrovskis. You referred to write-offs for viable businesses and households with a special emphasis on resolving long-term arrears. The banks have persecuted small businesses and individuals. We have significant levels of deaths by suicide, family disruption and trauma, all from the fact that the banks refuse to deal with the issues before them in a way that shows some degree of compassion and humanity.

It is my opinion that Europe stands idly by and watches as our citizens are punished for something they did not inflict upon themselves. I am simply giving you my views.

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