John O'Mahony (Mayo, Fine Gael)

I am pleased to make a brief contribution to this debate. I was elected to this House three years ago and in that time I have listened to many debates and exchanges in this Chamber about the causes of the country's dramatic economic collapse. The collapse was well flagged behind the scenes before that. As with all debate and argument, Government Deputies have said we were only scoring political points on this side of the House. Last week's reports firmly put that issue to bed. The arguments in the independent reports are there for all to see. They clearly point the finger of blame at the mismanagement of the Government while it was driving the economy. All the arguments trotted out by Government spokespeople in the last couple of years have been shown to be false, flawed and inaccurate.

I was amazed when I read the reports last week and paralleled the events covered in the reports with political events that happened at the same time. In the run-up to the 2007 general election, we were told the economy was in overdrive and the good times were here to stay. A few months later, when Fianna Fáil was safely back in Government, we were assured that even if there was a slight downturn there would be continued growth and all would be well. Next we heard denials that there was a crisis, when the dogs in the street know that thousands of jobs were being lost throughout the country and across the economy. Then we were told it was not the Government's fault. The latest spin is that they have taken decisive action, know how to solve the problems and have taken the hard decisions. This is unbelievable.

One of the reports, referring to wages and competitiveness in the late 1990s, states that wage settlements accelerated markedly from the late 90s and in relative terms. The trilateral wage agreements continued but became less relevant as workers negotiated supplementary wage increases against the background of full employment and an overheating economy. Compensation per employee, which had grown more or less in line with the euro average until 1996, increased at two and three times the euro area average from 1997 to 2008. In nominal terms, annual growth wages in Ireland were the highest in the euro area except for Luxembourg. Ireland had the highest price level in the euro area, according to Eurostat statistics. Competitiveness deteriorated significantly. From 1999 to 2008, Ireland's real effective exchange rate increased more than that of any other country in the euro area.

Is it a coincidence that a Fine Gael-Labour Government handed over an economy that was creating 1,000 jobs a week and was being led by huge increases in exports because we were competitive and could compete in the markets of Europe? All that progress was frittered away by reckless lending, 100% mortgages and tax exemptions left, right and centre. All of this ensured it was going to be a crash rather than a soft landing when the good times ended.

The reports go on to say the fiscal policy - considered to be exemplary, because of surpluses, until 2006 - was, in reality, deteriorating long before that. The economy was, in truth, in crisis in the early part of 2007. That is another significant date but, of course, we were not given the real story then either.

One of the real stories did not emerge until today. Deputy Ulick Burke has told the House how the Joint Committee on Finance and the Public Service was told by Mr. Mike Aynsley of Anglo Irish Bank that the €22 billion has gone down the drain and will never be seen again. Someone has to be held responsible for this. The cover-ups must stop. The truth must be released. This motion will, if passed, help the truth to emerge and place accountability where it rightly lies.

I have heard the argument made that we all made mistakes in the last ten years. Who made the mistakes? Who was in Government during the last ten years? There is an attempt to implicate the Opposition in these mistakes. It is incredible, on the day the Joint Committee on Finance and the Public Service is told that €22 billion has gone down the drain that the Government would vote against a motion which seeks to know the political and policy context for the failure of 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 that need to be learned.

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