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

For the information of the Governor, earlier during the meeting we agreed that a letter from Deputy Doherty would be sent to the Central Bank on behalf of the committee seeking a review of the material that had been furnished to the Central Bank by Jonathan Sugarman. I met representatives of the Central Bank and Mr. Sugarman some time ago. We now want to revisit that documentation and to hear Mr. Makhlouf's view on the complaints that were made, how they were handled and the general position on the matter. I wished only to alert Mr. Makhlouf to the fact that we will write to him about it.

Another issue discussed during the previous term related to EBS tied agents. I raise this because I have been in constant contact with the EBS agents and Deputy Conway-Walsh asked me to raise it with the Governor during the meeting. Will he confirm whether the Central Bank has had any engagement with EBS on the matter or, arising from that, with the Garda? The dispute itself has been ongoing for ten years. In the meantime, some of the agents have passed away, yet the matter has not been dealt with. Perhaps the Central Bank will review the status of that and let us know where it stands. It will be part of our general work programme to deal with that issue, which has been outstanding since the time of the previous committee. We intend to take it up in a more detailed way with the bank in question and, we hope, the Central Bank.

In the edition of the Financial Timesof 7 May, an article entitled "Irish eyes are frowning" revealed how the Central Bank relied on a solvency report of Anglo Irish Bank in 2008, produced by PricewaterhouseCoopers, to justify the repayment by that bank of the emergency lending assistance.

According to the accounts, there are two different ways of looking at this matter. Does the Governor have any views on that article, which was by Matthew Vincent, and another, related, article by Niall Brady of The Sunday Times? The committee had a submission from Mr. Cormac Butler which gave a very detailed account of the liquidity issues in the bank at that time. The PricewaterhouseCoopers accounts are at variance in terms of how they can be interpreted. I would like to know the Governor's views on that.

Another issue I wish to raise relates to whether the Central Bank investigated a branch of Allied Irish Banks on matters concerning credit, loans and so on. Was the bank notified about that issue by AIB? In an article in the Irish Independenton 21 October, entitled "Fund managers ignoring investor safeguards, says Central Bank", it is stated that the Central Bank had identified a need for improvement across the fund management sector, "with many firms lacking robust board supervision". Will the Governor outline what he expects to happen and what actions he intends to take in that regard?

Issues concerning receivers used by the banks have been raised time and again at this committee. We are anxious to get to the point where we understand their role and what they can and cannot do. They seem, in effect, to have powers beyond what I understand their powers to be. They also seem to have no accountability to anyone.

I have a number of questions regarding what is happening at specific banks. The High Court appeal involving Danske Bank seems to be resulting in many related cases being put on hold. Does the Governor have a view on that? Will he comment on the substantial number of complaints outstanding against Permanent TSB concerning incorrect margins, how they were applied and so on? In the case of KBC Bank, the flyer issue, as it is now known, is an outstanding matter that affects many more customers of that bank. Given the Central Bank's damning verdict on its behaviour, I would like to hear the Governor's view on that issue.

Finally, I agree with what Deputy Durkan said in regard to the banks. I challenge the Governor on his statement that the protection applying to the banks travels to the vulture fund. As I said to him before, that may be the case on paper but such funds could not give a tuppenny damn about customers. They blackguard them, refuse to meet them and do not reply to emails from them. If one is a third party, as I am, with a number of such customers, the funds will totally disregard what one is doing, particularly in the services sector and others. I want to put that on record in view of what the Governor said. Given that we are due to finish promptly at 4 p.m. and Senator Casey still has to speak, I ask that the Governor reply to me in writing.