Paul Connaughton (Galway East, Fine Gael) | Oireachtas source

I welcome the establishment of the commission of investigation. I only regret it was not established earlier. Significant questions have been raised in recent months concerning deals conducted by IBRC. The best and most transparent way to get the necessary answers both for the Government and the people of Ireland is through a commission of investigation. I commend the Minister for Finance, Deputy Michael Noonan, on the approach he has taken to the establishment of this commission. The proper consideration given to the set-up of this inquiry is reflected in its terms of reference which, while trying to get to the nub of the questions raised in recent weeks, also aim to limit the scope of the inquiry to the matters of significant public concern which should ensure the Government gets the commission’s report in a timely manner.

The decision of the commission to report no later than the end of the year is welcome. It will ensure its work is carried out quickly and thoroughly and the matters do not drag on for years. A six-month timeframe is adequate and I have every confidence that this matter can be investigated properly in that timeframe.

The commission of inquiry faces many difficult decisions in the coming months. One of the most difficult decisions it will have to decide on is what represented good value for money both in terms of the sale of Siteserv and other transactions. When one is forced to sell in a fire-sale setting, it can be hard to comprehend the scale of the write-downs that occur. Property owners across the country have come to the hard realisation that the selling price for property is not always determined by the value for money consideration on the part of the vendor. For many forced to sell property at the height of the economic bust, the value achieved at sale was only a fraction of the real value of the property. Considerations which also influenced the sale price included public confidence, availability of investment funds, natural economic performance and outlook, as well as the availability of buyers with the interest, confidence and wherewithal to make the investment.

The need for this commission of investigation is prompted by the danger of a public perception that the big player in the market is always at an advantage over the smaller player. There is no doubt that those who have the money to purchase property at the lowest ebb of a recessionary cycle stand to make the most as an economy recovers. That is true all over the world. What this commission of investigation will have to decide is if an unfair advantage was given to any particular player at the expense of the Irish taxpayer. Accordingly, I welcome the elements in the terms of reference that make specific reference to preferential or unduly favourable interest rates and any unusual share trading. These are important questions which need to be answered in the report in six months’ time.

It is only from the benefit of a few years remove that we are finally getting to grips with exactly how toxic Anglo Irish Bank was. The State aims to recover its investment in Bank of Ireland, AIB and Permanent TSB. However, there is no such happy ending in its involvement in Anglo Irish Bank. The Government has pledged to withdraw from its involvement in the banking market as soon as is practicable and as soon as Ireland has a properly functioning competitive banking sector which can serve the people’s interests. The wind down of Anglo Irish Bank and Irish Nationwide Building Society was committed to after the 2011 general election. The vehicle used to achieve this wind down was IBRC. We must not equate Anglo Irish Bank with the IBRC but understand that IBRC's function was to achieve an orderly and timely wind down of the bank.

The lessons learned during the past decade must not be forgotten. The disaster that was light-touch banking regulation has cost this country dearly and has impacted on hundreds of thousands of citizens’ lives. Lessons will continue to be learned and that is why I welcome the transparency offered by this commission of investigation. I look forward to the report that will be published as a result as it will provide information and clarity on some significant transactions and adjudicate whether or not they were conducted in the best interests of the public.

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