Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I am pleased to have an opportunity to contribute to the debate on the motion establishing a joint committee to hold an inquiry into the banking crisis. Although I very much support the holding of such an inquiry, this is not the type of inquiry I would have established. It has one hand tied behind its back before it starts because it will be, by definition, a political inquiry conducted by politicians. Some of the commentary, right up to the level of the Taoiseach, in recent months leads me to believe some people have prejudged the inquiry before it has even held its first meeting.

The Tánaiste's opening remarks today were laced with politics and political innuendo, which does not set the right tone for the commencement of a very important Oireachtas inquiry. The entire Oireachtas system is on trial. If we are incapable of demonstrating that we can act independently and conclude an inquiry into a matter of significant public interest, we will, again, have failed the people and further fuelled the growing disenchantment with politics.

The other reason I believe the inquiry is starting with one hand tied behind its back is that we are unable to make adverse findings against any individuals. Many people will feel disappointed and let down by the outcome of this inquiry. It is important we lay out in very clear terms the expectations of this inquiry. Nobody will go to jail, lose their jobs or have their pensions reduced as a result of the inquiry. As Deputy Pearse Doherty said, it is no substitute for criminal proceedings and for actions to be taken by the State authorities against those who are guilty of wrongdoing. By virtue of the Abbeylara judgment, this inquiry will not be able to make any such adverse findings but is likely to inquire, record and report. The most we can hope to achieve is to hold to account in a public form all the actors involved in the different aspects of the crisis. This will not be an insignificant achievement and it is vitally important we do it.

The inquiries that have been conducted so far, particularly the statutory inquiry by Mr. Peter Nyberg, were conducted in private. People want to see bank employees, the Financial Regulator staff, Government members, professional advisers, auditors and all those who played a role in the crisis being held accountable in a public forum. If, through asking the right questions, we can achieve a comprehensive compendium of everything involved in this banking crisis from beginning to end, we will have provided a level of service to the people who want us to do that.

There are some fundamental aspects that must be included in the inquiry. The policy response to the crisis in September 2008 and the decision of the bank guarantee by the then Government will be a very important part of the inquiry and we will need a detailed account of how the decision was made, the advice received, the considerations taken into account, the reasons for the decision and the consequences. However, it will be a missed opportunity if we do not get a proper handle on the factors that led up to the crisis, not in an abstract way. We must find out what was going on in the board rooms of the financial institutions concerned.

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