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Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Pearse Doherty: Because the ECB-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Pearse Doherty: Okay.

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Pearse Doherty: Okay. There was one last question, because I've got to nine and I would be ashamed just to miss the last one.

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Pearse Doherty: You mentioned in response to, I think it was Deputy Higgins, in relation to the option about how did we fulfil this commitment of breaking the game-changer, you know, the banking and sovereign link.

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Pearse Doherty: And you put forward the promissory note restructuring. You said there were other options put forward. Can you explain to us what those other options were put forward? Was one of those options, for example, looking for the retrospective recapitalisation of the banks through the ESM, which was what was promised at the time, or at least suggested by the Minister for Finance and others?

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Pearse Doherty: What do you mean by it wasn't going anywhere politically? Did it hit a brick wall? Like, did it ... where, when you say it wasn't going anywhere, was a request made or was feelers put out in relation to this?

Committee of Inquiry into the Banking Crisis: Nexus Phase (25 Jun 2015)

Pearse Doherty: Okay, thank you.

Written Answers — Department of Education and Skills: Third Level Fees (24 Jun 2015)

Pearse Doherty: 224. To ask the Minister for Education and Skills if she will consider removing a qualifying condition that applicants must have lived here for three out of the past five years for returning emigrants who meet the habitual residence condition under social welfare which qualifies them for jobseeker's allowance and back to education, as it is clearly a contradiction of their residency status by...

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: Go raibh maith agat, a Chathaoirligh, agus fáilte, John. Can I ask you, in your opening statement, you agreed that the staffing numbers of economists in the Department was inadequate. You also mentioned that there was, there has been, and continues to be, efforts to address this. You also, and you've given some figures to the Deputies, or the Senators, in relation to that. Could you...

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: Well, the fact that you, yes, your statement that there were an inadequate number of economists. So how did it affect the work of your Department?

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: Are you saying that the number wouldn't have made a difference?

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: There has been evidence given to the committee that it's about the framework used in modern macroeconomics that was at fault here, and there's been suggestions that no matter how many economists you had in the Department, there was a bit of herd mentality there. Do you subscribe to that notion, that-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: But some people ... some people were calling ... like, for example, in your opinion now today, do you believe that Morgan Kelly was correct in his analysis?

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: What about the details of how you were looking at it and how he was looking at it in terms of ... in terms of summing it up and not agreeing with everything but do you believe on the ... on the ... in fairness that his was mostly correct in relation to his analysis while the analysis of the Department and the team of economists that you had failed to see what he was ... what he was seeing in...

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: But can I ask you ... can you give the committee any examples where economic policy was changed as a direct result of a critical report from the Department's economic division and also can I ask you to give an example where your own analysis differed from the consensus view? Did you yourself offer - and I'm not just talking about a number of years ago ... today or in the last number of years...

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: But, Mr. McCarthy, we know from-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: It's on the same question ... but we know from people, for example, Marie Mackle, who was answering parliamentary questions ... and she wasn't in the position that you were in but she was offering a contrarian view. The question I have ... and to go back to the question is: can you give an example to the committee, right up until now, where economic policy was changed as a direct result of a...

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: Perhaps give examples where an example where economic policy was changed as a direct result of a critical report from the Department's economic division, that's the first part of the question. The second part was an example of where your analysis differed from the consensus view. Was that offered and was it ever taken on board? Examples-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: And if there was never one, then let's just state that. If there was, give examples.

Committee of Inquiry into the Banking Crisis: Nexus Phase (24 Jun 2015)

Pearse Doherty: Go raibh maith agat, a Chathaoirligh, agus fáilte arís, Can I ask you why, in your view, was bank recapitalisation progressed on a phased basis, given that the original intention was for a recapitalisation programme of up to €10 billion only?

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