Chairman:

The committee is now in public session. I welcome everyone to the first public hearing of the Joint Committee of Inquiry into the Banking Crisis. I will begin with an opening statement and then we will proceed to our discussions with Mr. Nyberg.

The dark cloud of the banking and financial crisis still lingers over every home in Ireland. It is the task of this inquiry to shed light on how the collapse happened and to ensure that such a dark shadow never falls on our country again. Today we begin our first public hearings into the banking crisis. There have been a number of reports into the crisis and much has been written about it but gaps remain in our knowledge of that time. We do not have a full picture of the events leading up to, during and after the crisis. Many questions remain unanswered and without the knowledge that answers to these questions will provide we cannot protect ourselves against a repetition of the crisis. This means that those who can answer those questions must come before this committee to give a first-hand account of their stewardship. This is the first time that the decisions that visited the financial crisis on the Irish people will be examined in public. We will hear from experts who will put Ireland's crisis into a world context and we will hear from those who were at the helm when Ireland ran aground, as well as from those who were in the engine room. The purpose of this inquiry is to identify and learn from previous mistakes and to ensure that, as far as possible, we do not create the circumstances which could lead to a similar disaster in the future.

This committee has the power to compel written and oral evidence so there will be witness testimony, oral evidence, transcripts and detailed records all presented in public. This means that the Irish people will hear, at first hand, from those who were involved in one of the major events in the history of our country. The public will be able to see and hear from them as they are questioned and give their evidence to this committee. It is up to us as a committee to put the pieces of the jigsaw in place so that the fullest picture emerges. This inquiry is not only about looking at the past; it is also about examining the operation of current financial systems. We must ensure that this country puts in place a financial services infrastructure and an oversight regime that is robust and fit for purpose.

Today we are at the beginning of the process. We recognise that there is a huge volume of work ahead of us but we are ready for the task. The committee members are just the visible side of this inquiry. Whatever we achieve by our work in this committee room, no matter how successful we are, we know that we depend on the support, hard work and dedication of those working behind the scenes - the public servants and the support team. As a committee, we are all working together to deliver to the Irish public an inquiry that is long overdue and which will endeavour to ensure that the financial burden that has laid itself so heavily on the shoulders of the Irish people will not be placed there again. I have said it before and I will say it again: this inquiry is an opportunity to leave our club jerseys at the committee room door and to do an important job of work on behalf of the Irish people who deserve nothing less. It is necessary that we all approach this inquiry with open minds. Nobody has a monopoly on wisdom and nobody should prejudge the outcome of this inquiry. This is an important opportunity to demonstrate an example of Parliament at its best - thorough and impartial.

As Chairman, it is my job to ensure that we take a collaborative and inclusive approach. Committee members, who have diverse individual backgrounds and political opinions, have proven through their efforts to date that we can work in a collegial spirit in the interests of the Irish people. As I have said, we are at the start of the process. We have a big challenge ahead of us and we must be clear about that. We know the clock is ticking and that the timescale is tight. Nevertheless, we have accepted the challenge and will meet it. However, it would be wrong to see this just in terms of a challenge. It is a privilege to serve on this committee. It is also an opportunity to shine light on a dark and painful time in our recent past, to piece together the events of that time, to learn from the mistakes that were made and to ensure that those mistakes are never repeated.

At this point, I wish to welcome our first witness, Mr. Peter Nyberg, to discuss the report of the Commission of Investigation into the Banking Sector in Ireland, entitled "Misjuding Risk: Causes of the Systemic Banking Crisis in Ireland". Mr. Nyberg retired in 2010 from his position as director general of financial services at the Finnish Ministry of Finance. Before joining the Ministry in 1998 he worked, since 1972, in various positions at the Bank of Finland and for more than three years at the IMF in Washington, DC. At the Bank of Finland, Mr. Nyberg and his staff were intimately and fully involved in addressing the Finnish banking crisis between 1991 and 1995.

Mr. Nyberg also took part in the negotiations leading to the Finnish membership of the euro area. After his retirement, he assisted the Finnish Ministry of Finance during the euro area preparations and negotiations leading up to the crisis programme in Cyprus. In September 2010, the Irish Government established a statutory Commission of Investigation into the Banking Sector in Ireland and Mr. Nyberg was the sole member of that commission. The commission's report, Misjudging Risk: Causes of the Systemic Banking Crisis in Ireland, was published in March 2011.
Before I invite Mr. Nyberg to make his opening remarks, I wish to advise him that by virtue of section 17(2)(l) of the Defamation Act 2009 he is protected by absolute privilege in respect of his evidence to this committee. However, if he is directed by the committee to cease giving evidence on a particular matter and he continues to so do, he is entitled thereafter only to qualified privilege in respect of his evidence. He is directed that only evidence connected with the subject matter of these proceedings is to be given and is asked to respect the parliamentary practice to the effect that, where possible, he should not criticise nor make charges against any person, persons or entity by name or in such a way as to make him, her or it identifiable. Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the Houses or an official either by name or in such a way as to make him or her identifiable.
Once again, I welcome Mr. Nyberg and call on him to make his opening statement.