Charles Flanagan (Laois-Offaly, Fine Gael) | Oireachtas source

This is an important debate and one in which I am pleased to have the opportunity to make a contribution, however brief. This two-day debate is part of the Government's commitment to transparency and openness. It is regrettable that some members of the Opposition are displaying an absence of good faith in this regard, while others, such as Deputy Catherine Murphy, are in many respects to be commended on their dedication to public service and accountability in asking questions and allowing due process. I cannot say the same about the Deputies opposite on the Fianna Fáil benches, because they have shown a remarkable ability not only to put the past behind them but to pretend it never happened at all. They fool themselves into believing that the starting point for any examination of Irish banking matters should begin after the 2011 general election. The reality, as we all know, is that following that general election, a new Government came to office - one in which Deputy Michael Noonan, as Minister for Finance, has had a huge role to play in addressing the toxic legacy of an abject failure to properly manage and regulate our banking and financial system. Fianna Fáil's approach over the many years when it was vested with responsibility of guarding the public interest is sometimes referred to as "light-touch regulation." To my mind, that is a very polite description of what is more accurately termed "gross negligence." That gross negligence was underpinned by endemic and rampant cronyism as leading Fianna Fáil politicians fraternised on golf courses and in racecourse tents with bankers, developers and other members of the golden circle that characterised the modus operandiof Fianna Fáil in government for many years. Anglo Irish Bank was inextricably linked to Fianna Fáil and it was the toxic agent that slowly poisoned the entire banking system; we are still grappling with the fallout and we will be grappling with it for many years. The subject matter of this debate continues to be part of that legacy. It is often said that Fianna Fáil in government believed that taxpayers' money was its own money to spend in whatever way it saw fit, with scant regard for the overall common good. Nothing proves that point more than the €34 billion it sank into Anglo Irish Bank. That was a staggering amount of taxpayers' money that we will never see again. It is very difficult to say that the taxpayers' interests lay at the heart of those decisions. In fact, it is impossible to say it. It is impossible to arrive at any conclusion beyond recklessness and negligence.

By contrast, this Government has made a realistic and responsible assessment before investing taxpayers' money in AIB, Bank of Ireland and Permanent TSB, and we intend to recover that investment fully. The value of the State's investment in AIB, Bank of Ireland and Permanent TSB continues to rise. It is not this Government's intention to remain a holder of its banking investments in the long term. Unlike the Opposition, this Government does not believe politicians should be in the business of banking or directing the banks how to act. Siteserv is a case in point. We believe a thriving, competitive banking sector which is properly regulated will produce the best outcomes for consumers and citizens. The Government's exit strategy is about recovering the full cost of the taxpayers' investment in these institutions and using the proceeds to further reduce our debt. The sale of 25% of Permanent TSB further improves this position and we are confident that all the taxpayers' money invested in Allied Irish Bank, Bank of Ireland and Permanent TSB will be fully recovered.

This debate focuses on the Government decision to establish a commission of investigation into certain activities of IBRC. There has been an attempt by some on the Opposition benches to twin IBRC and the current Government in the public mind, as if we are in some way cheerleaders for that entity. In fact, the reality is that we are its liquidators. IBRC was created by Fianna Fáil, explicitly designed to operate at arm's length from the Government. There is now a public concern about some decisions taken by the board of IBRC; most of these decisions were taken by a board appointed by the previous Fianna Fáil-led Government operating within a framework put in place by that Fianna Fáil-led Government. The framework did not require the Minister for Finance to be informed of deals such as the Siteserv one, which was already concluded by the time concerns were raised with the Minister for Finance. As soon as these concerns were brought to the Minister's attention, he and the Department of Finance put new measures in place, replacing the relationship framework in 2012 and enhancing oversight activities of IBRC.

My colleague, Deputy Noonan, is without doubt the best Minister for Finance to have served his country since the foundation of this State. History will recognise him as such. His deep sense of public service and civic responsibility drives him day after day and year after year to give his all to bringing about Ireland's economic recovery and creating a sustainable and secure future for succeeding generations of Irish people.

He, along with his Government colleagues, has helped to lift this country off its knees, going from the pariah of Europe to its fastest growing economy. His achievements and steady stewardship have enhanced investor and consumer confidence at home and abroad. He has moved us from being dependent on the troika after being locked out of international bond markets to a point at which Standard & Poor's this week awarded Ireland an A+ credit rating. He is widely respected internationally, as I well know from my work as Minister for Foreign Affairs and Trade.

Some on the Opposition benches take a narrower, political view. They see the Minister, Deputy Noonan, as an asset to the Government and Fine Gael, a Minister at whom they need to throw a lot of mud in the hope that some of it will stick. I have bad news for them: the Minister was not the champion of IBRC, the remnants of Anglo Irish Bank and Irish Nationwide Building Society. He was its liquidator. Not alone did he honour his commitment not to sink taxpayers' money into IBRC, but he succeeded in the challenging task of restructuring the punitive promissory notes that Fianna Fáil had bequeathed as part of its toxic legacy. The deal on the promissory note in February 2013 was a key step in the stabilisation of the public finances and our clean exit from the bailout later that year.

The Minister also succeeded in achieving a reduction in the interest rate on the European loans provided under the bailout programme, securing agreement on extending the maturity of the European loans and replacing €18 billion of IMF loans with cheaper market-based funding. We continue to emerge from what was a catastrophic economic crisis comparable only to the early years of our State when the Government set about building a new state from the smouldering ruins of the War of Independence while civil war raged around it. Through the leadership and vision of Ministers like Deputy Noonan and the resilience of the Irish people, we are firmly on a path to recovery and are in the process of securing that recovery.

The Minister has also shown leadership in proposing the establishment of this commission of investigation. I look forward to the Dáil allowing the commission to undertake its task. It will be independent of the Government and proceed. I am somewhat struck by calls from the Opposition for the commission to do more. The shopping list will continue because it makes for good politics and copy. At the same time, the Opposition wants the deadline to be brought forward from 31 December. We agreed the terms of reference and the Dáil will approve them later this evening. Let the independent judicial figure undertake this task as quickly as possible. We will await the report. Any question asked of the commission in the course of its duty will be answered. I look forward to receiving the report of the commission of investigation by the 31 December deadline.

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