Brendan Howlin (Wexford, Labour)

The decision made was catastrophic. We need to get behind the information the Government had available to it on that fateful night because it is the view of the commission in the report before the House that the decision was taken on the basis of inadequate information. The commission's report notes that the authorities had developed, in line with EU requirements, a framework for information exchange, crisis management and contingency planning in a domestic standing group on financial stability. This provided a structure for ongoing co-operation between the Department, the Central Bank, the Financial Regulator and the NTMA. In the light of the commission's findings on the evident information deficit, we will need to look closely at how the arrangements for information gathering and exchange can be improved. The structure of the domestic regulatory and banking system has changed significantly in the years since the crisis hit. The Government will be presenting legislation later this year to further enhance our regulatory and supervisory regime.

The issue of payments to senior bankers, particularly the payment to Mr. Colm Doherty of AIB, the details of which were published yesterday, was mentioned. As the Minister for Finance, Deputy Michael Noonan, stated, we have many legacy issues to deal with. There was nothing, unfortunately, that the current Government could do about Mr. Doherty's payment because when he stood down in November, he was given the remuneration to which he was legally entitled at the time. All of this occurred before we arrived in office. There may be other senior bankers who have legal entitlements to similar deals. The Department of Finance is examining the situation. In future we will be carefully examining any new remuneration arrangements, particularly bonuses. There are similar developments in Europe, with European directives on the remuneration of senior bankers, and the bonus culture is being addressed head on. We will be moving to establish a new regime to replace the old one. However, we live in a very litigious state and the Minister is conscious of the fact there are still people who have legal entitlements that may be difficult to disentangle. We will do our best to address the issue.

Deputy Shane Ross raised concerns about public interest directors and boards in the covered institutions. As a result of recent events, the Government now has, or will have, a substantial stake or a full controlling interest in six credit institutions. We are determined that proper governance arrangements will apply and that the board of each institution will continue to be responsible for management and policy within the institutions.

Deputies Brian Lenihan and Mary Lou McDonald raised the issue of auditors. As the Minister stated, the report's conclusions with regard to auditors are in general accord with the widespread view that auditors may be able to take on an enhanced role in co-operation with supervisory authorities, while maintaining their specific statutory functions. The Central Bank is already engaging with the audit profession to explore how it can assist the bank in exercising its supervisory role. The Minister will be keen to see progress and developments in this regard.

Deputies Brian Lenihan, Pearse Doherty and Shane Ross raised questions about the role of the Department of Finance. As the Minister stated, the report contains important messages and conclusions for the Department. While it deals principally with banking matters, some of the messages will also be examined by me in my role as Minister for Public Expenditure and Reform. The report, in conjunction with the Wright report, will inform the future direction of the Department. Deputies will recall that the recommendations set out in the Wright report cover a wide range of issues regarding organisational structures, skills within the Department, staffing and procedures. The exact reconfiguration of the banking division within the Department will be developed in the coming weeks.

As I said, it is important that the Oireachtas has a role in considering the report. I am conscious that some Deputies who wanted to speak did not have an opportunity to do so. As Deputies will be aware, the Oireachtas has been involved in the stages of the process to date and there must be more to come. On behalf of the Government, I am anxious to ensure that today will not be the end of this. We must learn the lessons of the report and ensure proper accountability. We must use the institutions available to us and strengthen them, as the Government announced yesterday, by asking the people for greater authority for the committees of this House in holding public institutions and individuals to account.

The report provides an expert, authoritative and structured examination of the crisis. It does not lay the finger of blame in the way some would have liked but identifies the causes of the crisis in the banking sector and the wider financial impact it has had on the economy. It enables us to understand the origins of the crisis and helps us to learn lessons which will inform our future management of the banking sector. I hope we have embarked on a process that will ensure the catastrophic collapse in our oversight of the banking sector will never be repeated.

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