Brian Cowen (Laois-Offaly, Fianna Fail)

I am not too sure if it was just in relation to the introductory statement Deputy Kenny made that I regarded whatever he said with contempt, but there was basically the assertion that in some way there is an untoward issue that arises as a result of any contact that took place. That is a narrative which has been conducted by the Opposition on an ongoing basis. When one gets to the nub of it, the claim is that this triangle they talk about, of Anglo Irish Bank, Fianna Fáil and developers, means that in some way Fianna Fáil has been involved in subjectively protecting people and all this sort of stuff. This has been the constant narrative. I want to refute all of that as without foundation.

Second, in regard to what Deputy Kenny has asked me, I do not recall at any time such a request coming to me from Mr. Drumm to talk to Dr. Michael Somers. I suppose the best way of deciding whether it happened or not is to know whether I did make such a request, which I did not, and that has been confirmed by Dr. Somers himself. That is as far as I can take it. There is no question of any inappropriate behaviour by me in respect of that matter at any time during my period as Minister for Finance or as Taoiseach.

The Deputy's second point relates to what he called a cosy relationship. Any Minister for Finance would know the chairmen of the three biggest banks in Ireland. I had no closer a relationship with Mr. FitzPatrick, based on my job as Minister, as any of my predecessors would have had with him or with the chairman of AIB or the chairman of Bank of Ireland. I have met them all from time to time in the conduct of my duties.

In the first instance in regard to the telephone call in March, I was away in Malaysia and Vietnam doing St. Patrick's Day work on behalf of the Government. I was in Vietnam by the time a telephone call was made to me. I was away on St. Patrick's Day when, as people will be aware, a share price drop happened in Anglo Irish Bank. It was related to the fact that Halifax Bank of Scotland's share price had dropped considerably, and there was a read across to Anglo Irish Bank which had a similar monoline-type portfolio. That was one issue. I had been notified in early March by the former Central Bank Governor, Mr. Hurley, who has confirmed this, that there was market intelligence suggesting that Seán Quinn had taken a contract for difference position in relation to Anglo Irish Bank and that this was an issue that was being looked at to try to verify the extent of it.

Before I took a telephone call from Mr. FitzPatrick, as I felt was the appropriate thing to do as Minister for Finance, I telephoned the Central Bank Governor asking for an update. I had heard that there had been a share price drop since I was away - my private secretary from the Department of Finance would have accompanied me on those trips. My wife also accompanied me and at that stage we had completed our work and were taking a couple of days in a resort in Vietnam whose name I forget. The Governor told me that there had not been any further developments since he had spoken to me last. I said that was fine and then telephoned Seán FitzPatrick as requested, or perhaps he telephoned me. Fintan Drury would have been the person who telephoned me to say Mr. FitzPatrick was looking to talk to me. When Mr. FitzPatrick spoke to me he brought me up to date as to what had happened. I said to him that this was a matter that would be dealt with by the Central Bank Governor, or by the regulator as CFD issues are a regulator issue. I telephoned back Mr. Hurley and told him the position and said to him to make sure it was followed up. On the following day, Good Friday, heading into the Easter weekend - Easter being the weekend after St. Patrick's Day week that year - the Central Bank Governor and the Financial Regulator met with Anglo Irish Bank in Central Bank offices.

In my opinion, that was the appropriate way a Minister should handle that situation, and it was subsequently followed up by the Financial Regulator. There was then a change of Administration where I became Taoiseach and Deputy Brian Lenihan became Minister for Finance. The Minister has outlined to various committees the situation from then on. In July, as people will be aware, it became public news that the Quinn position had been unwound and we were told that other investors had been found. The Minister, Deputy Brian Lenihan, would not have had available to him under the law the names of those investors, and nor had I at any time. We now know, subsequent to the guarantee and subsequent to a due diligence procedure which was done in Anglo Irish Bank, that corporate governance issues arose and that matters were referred to the Director of Corporate Enforcement and to the Garda. That investigation is ongoing and is now with the DPP, so I cannot say anything more than that about it.

The third issue was in regard to the situation in July. On 23 July we had our last Cabinet meeting before the break after which I went to play golf at the request of a friend of mine, Fintan Drury. Also in attendance at that time was Seán FitzPatrick. I do not play much golf and have not played golf with Mr. FitzPatrick before then or since. It was the only time I ever played golf with him. That game took place and I did not discuss Anglo Irish Bank matters with him throughout that period. The appropriate way to behave if one is having a serious discussion about something like that is that one would bring the person to the Department and there would be officials in attendance. As Taoiseach, I would bring the Minister for Finance if he was available and such a discussion would take place. I am not in a position to concoct a story to say that there was some part of the day when it was discussed, because it was not discussed and that is the truth. I have no reason to say otherwise. Those are the three incidents.

If I may, A Cheann Comhairle, for the purpose of bringing this to a complete position, I will deal with the politics of it. The whole charge behind all of this, when one comes to the nub of it, is that Fianna Fáil did something it should not have done on the night of the guarantee for these people.

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