Results 3,901-3,920 of 7,082 for speaker:John Paul Phelan

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: Okay. I want to refer to the contents of the letter. And it's, as I said, signed by the head of lending with EBS, it's in relation to the SSIA scheme. And in it, Mr. Walsh appears to state that the origin of the SSIA scheme came from that conversation that he had with you at the Galway races on 2 August 2000. Is that how you remember the genesis?

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: This is 2000 now.

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: The following pages-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: Yes. It's the first ... and I'm not trying to cut you short, but I'm down to seven minutes. It's the first document that I have found relating to the SSIAs. Now, many people might wonder what impact the SSIAs might have had on the ... the banking collapse but, I just want to ask you, what analysis ... like, cost benefit analysis was done, either by yourself or by officials or by anybody...

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: Okay-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: Sorry, I've asked you what analysis did you do or did your officials do, before-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: And that's fair enough. And I'm not asking you about post-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: I'm not asking you about post.

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: No, I haven't.

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: I'm not even sure where it is. Probably spent it on an election. Can I ask you, Mr. McCreevy-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: You see, this is ... this is the kernel of the questions that I want to ask. You said, at your own admission, you were calculating how much it cost the Exchequer, it would have resulted in €11 billion to €12 billion being saved.

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: But that was core tier 1 capital for the banks, that they were able to then lend multiples of into the economy. Most of which, we've had evidence from several witnesses, at that time was being lent to property. Whether to developers to build property or to individuals or businesses to buy either commercial or residential property. And I just want, no ... and the question I want to ask you...

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: Well, I want to ask the question first ... and not have any analysis as to the impact that it would have on lending? This is the SSIA ... you can have daring views as to its impact. You said it had a counter-cyclical impact. It might have had in the short term, in the longer term, because it was a five-year scheme, it arguably didn't have a counter-cyclical impact because there was an...

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: I am not disputing the short-term effects. But what I am arguing is that this put €11 billion into the banks.

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: No, I'm asking the question. €11 billion was saved that the banks could then lend multiples of in the years ... in the years preceding the maturity of the SSIAs, which were the key years-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: I know that.

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: Building societies.

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: Okay. In November 2000 your own officials, according to a memo revealed to The Irish Timeson 6 May 2002, stated the following about the scheme, and I want to quite it directly, "Given the uncertain effectiveness of tax incentives for savings, the potential cost and significant deadweight, the provision of tax relief for capital investment in medium-term savings schemes is not recommended."...

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: No, but I'm talking on the basis of no analysis. Who was advising you?

Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)

John Paul Phelan: We know from evidence today, by the way, that one of the senior officials in your Department at the time, Mr. McNally, said that he didn't take one out. Were there any senior officials who advised you to introduce the scheme at the time, yes or no?