Joe O'Toole (Independent)

I will speak about the economy during the debate on the Finance Bill 2008. It is worthwhile to focus on the second point that was made by Senator Fitzgerald. I argued three months ago that the Financial Regulator was the most appropriate authority to make a statement about the capitalisation of the banks, as no other body had seen the books. That point was not accepted by any commentator or politician in either House. The Financial Regulator was right, but nobody noticed that either. It was not said again. It should be noted that despite all the criticism of the public service, the problems in Anglo Irish Bank were discovered by the Financial Regulator rather than by a team of high-powered auditors. The regulator brought the problems to the attention of the board after they were discovered earlier this year. The regulator works to the best of its ability, even if some people suggest otherwise.

The Deputy Leader suggested last week that the Financial Regulator did not do its job properly when it failed to take action against those offering loans of 100% and 110%. I remind him that the regulator was unable to take such action because the Oireachtas did not give it the authority to do so. When the regulator was being established, I tried to give it additional authority but my proposal was rejected. I spent weeks fighting on the floor of this House for legislative provision to be made for a directors' compliance statement, which would have dealt with the issue that arose last week. With the exception of the Labour Party, I did not get any support from either side of the House for my proposals in respect of huge issues like compliance statements and governance. It appears that we are being asked to give control of the €10 billion recapitalisation package to the same people who were involved in the transfer of loans worth €87 million. I will ask the same questions I have asked time and again. How can we do that? How do we know it will work? Why should we give this money to the people in question? What is the next step? A clear and old-fashioned case needs to be made. We will have much more to say about this. I thank the Financial Regulator for uncovering these problems. These people have pulled the wool over our eyes. Fool me once, blame on you. Fool me twice, blame on me. That is what we are looking at. I would not trust these people with €10 billion.