Ulick Burke (Galway East, Fine Gael)

The directors, senior management, auditors and accountants all conveniently or deliberately - we will never know - missed or ignored what was going on and this must be investigated. It is recommended in one of the reports that where auditors and accountants who should have scrutinised banks' accounts and lending procedures but did not do so this must be investigated, a recommendation which I hope will be acted on as quickly as possible. These auditors and accountants should have alerted the authorities of the weaknesses in banks' lending and financial positions and they must be investigated in the near future. This is the reason the crisis emerged.

The Honohan report clearly states that responsibility lies with the directors and senior management of the banks which got us into trouble. These people are the first line of defence, the ones who should protect us having been entrusted with our funds. The bankers blatantly denied right up to the end that there was trouble looming despite the writing being on the wall for all to see. There were numerous reminders in this regard from economists and Members of this House. However, when one highlighted this one was criticised and considered negative for doing down the country and the economy.

The other major cause of the crisis was the failure of the Central Bank and its regulatory functions. It was clear the banks were failing but this was ignored at all ranks within the banking structures and lending institutions. The Regling and Watson report clearly identifies the source of the banking crisis as a concentration on bank assets in terms primarily of their activities relating to the property market, in particular commercial properties. Thus, the banks were vulnerable to the bust that was obviously coming, about which they had been warned on many occasions.

I wish in the time remaining to me to highlight what the banks are doing to many small businesses in this country. Despite the fact that the banks have been supported and rescued with enormous and scarce resources of this country they are denying small businesses and those who were reliable clients in the past any leeway in terms of lending or funds to develop. This is causing serious havoc and serious unemployment in the country. It is incumbent on the Minister for Finance and the Government to ensure that once and for all the banking system releases funds to small businesses.

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