Michael Mulcahy (Dublin South Central, Fianna Fail)

An inquiry into the banking failure which occurred over the past two years is essential. I commend the Minister for Finance on the proposals he has drafted for an inquiry. I will adopt the reasoning used by the Minister and the Minister of State at the Department of Foreign Affairs, Deputy Peter Power, both of whom were very eloquent.

If one is a pensioner who has lost a pension, a shareholder who has lost value, a taxpayer who is at a loss or a stakeholder in society who has lost money through this crisis, one is entitled to an inquiry. As the Minister noted in his speech, there is an evident appetite for such an investigation. The debris from this crisis lies all around us. This morning's newspapers revealed that one developer received loans totalling €550 million without any guarantee. No prudent bank would undertake this kind of conduct. However, the primary reason for an inquiry is to ensure that our system never again collapses. The Spanish philosopher, George Santayana, famously wrote: "Those who cannot remember the past are condemned to repeat it." I do not think anybody here would wish a repeat of the problems we are experiencing.

Having established the need for an inquiry, the next question to be answered is the form it should take. It should be timely, efficient and successful in bringing forward a set of meaningful and comprehensive recommendations. The public does not want an inquiry which turns into a slanging match between politicians nor does it want the type of procedures proposed by Deputy Burton. It wants a proper inquiry into the past which is carried out by professionals and subjected to the scrutiny of this House so that recommendations can be made for the future.

The motion proposed by the Labour Party is based upon a legal fallacy because it admits that the Oireachtas does not have the power to conduct an inquiry without the introduction of new legislation. I have read the Bill drafted by Deputy Rabbitte and do not believe it meets the requirements set out by Ms Justice Susan Denham when she struck down the Abbeylara inquiry. She made it clear that the Oireachtas does not have the explicit or implied power to make findings of fact detrimental to the reputation of persons. While I am aware Deputy Rabbitte's Bill makes provision for potential criminal convictions, this is not sufficient to overcome the Supreme Court judgment in the Abbeylara case.

I commend the Minister on the fabulous work he has done. The Government amendment sets out the correct means to establish a meaningful inquiry into this most serious of matters.

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