Kieran O'Donnell (Limerick East, Fine Gael)

I move:

"That Dáil Éireann:

— commending the depth of analysis and conclusions of the Report on The Irish Banking Crisis - Regulatory and Financial Stability Policy 2003 - 2008 by the Governor of the Central Bank (the 'Honohan Report') and the Preliminary Report on The Sources of Ireland's Banking Crisis by Klaus Regling and Max Watson;

— noting the conclusion in both reports that the conduct of fiscal policy by the Government in the period 2003 - 2008 was a major contributory factor in the property bubble, the loss of export competitiveness and the subsequent banking and economic crisis, while also noting that it was beyond the terms of reference of these reports to examine the motivation behind these policy decisions;

— noting the conclusion in the Honohan report that the then Minister for Finance, Deputy Brian Cowen extended property tax reliefs for developers in 2006 at the height of the property bubble, while also noting that it was beyond the terms of reference of this report to examine the motivations behind these policy decisions;

— noting the conclusion in the Honohan report that the Minister for Finance and his officials exercised influence on the Financial Regulator in 2006 to the effect that a proposed tightening to the quality of governance of bank directors was not implemented, while also noting that it was beyond the terms of reference of this report to examine the motivation behind these actions; and

— noting the conclusion contained in the Honohan report that an excessively generous bank guarantee issued on 30 September, 2008, has cost the taxpayer more than was necessary to protect the stability of the financial system, and that arguments were made at the time against such a blanket guarantee, while also noting that it was beyond the terms of reference of this report to examine the motivations behind this policy decision;

resolves that the draft terms of reference for the Commission of Investigation into the banking crisis be widened by the Government to include:

1. the political and policy context for the conduct of budgetary policy in 2005 - 2008, including official advice given to the then Minister for Finance, and the lessons to be learnt;

2. the political and policy context for the decision to extend tax reliefs for property developers in 2006, including official advice given to the then Minister for Finance, and the lessons to be learnt;

3. the political and policy context for the delay in the implementation by the Financial Regulator of tighter compliance rules for bank directors, including official advice given to the then Minister for Finance, and the lessons to be learnt;

4. the political and policy context for the decision to extend the bank guarantee on 30 September, 2008, to investors in long-term subordinated and senior bonds, including official advice given to the then Minister for Finance, and the lessons to be learnt; and

5. the political and policy context for the failure by the Department of Finance and the Financial Regulator to stop Anglo Irish Bank from publishing financial results in December, 2008, that misrepresented the strength of its customer deposit base, and the lessons to be learnt."

I wish to share time with Deputies Crawford, McHugh and Connaughton.

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