Jerry Buttimer (Fine Gael)

I welcome the Minister of State, Deputy Haughey. Senator Donohoe was right in saying there would not be a public inquiry because those in government were afraid to be held accountable in public for a failed policy of regulation at State level, in the Central Bank, the office of the regulator, the Department of Finance, the Cabinet room and at the top in the Taoiseach's office. We need - to use that dreaded cliché - openness and transparency more than ever. As Senator Donohoe said, there is an economic depression and a malaise among the people, not because they want to be depressed but because they were placed in a position where the banking system almost collapsed and they, in turn, lost everything. I do not subscribe for one minute to the idea that there should be a witch hunt, a star chamber or anything like it because I am not interested in such an approach. What I am interested in was touched on by Senator Quinn who spoke on the Order of Business about brand Ireland, rebranding Ireland as a country with a highly educated workforce, open for business to the world - the west and the east - and an economic tiger ready to do battle again. Unfortunately, that will not happen.

The Green Party huffed and puffed and, unfortunately, blinked. The Minister for the Environment, Heritage and Local Government, Deputy Gormley, Senator Boyle and others spoke about the need for an open inquiry. They went to the Cabinet and had a meeting with the Taoiseach behind the scenes but the outcome is that we will have a secret private inquiry.

Bruce Arnold wrote about the impotent bank inquiry being the product of a castrated Dáil. Is he right? He might not be far wrong. This is not about distant individuals but about the operation of the State in not being managed properly. The banking system in Ireland has managed to inflict significant damage to itself, as Senator Donohoe said. It did so by abandoning the rules governing the availability of credit, borrowing and the granting of loans and it lost a sense of morality, value and respect for people. The ordinary staff member in the Bank of Ireland in Wilton which I frequent or the TSB bank is abused and blamed because he or she is on the front line rather than their superiors. That is unfortunate.

When the American banking system was in turmoil, an inquiry was immediately initiated and the people had results pronto. Compare that to what has happened here; belatedly the Government has proposed an inquiry, the outcome of which will a hodge podge of a commissioned report and a commission of investigation. The best way to restore trust in the banking system is to have an open and transparent inquiry to delve into the system, Government economic policy and the lack of regulation, not only during the past 12 months but also in the period leading up to the recapitalisation of the banks.

The current situation is predominantly the product of the Ahern era. In the case of the Murphy report, to their credit, Archbishop Martin and Cardinal Brady asked everybody concerned to co-operate. They told everybody to surrender documents, hand over everything that was required and co-operate fully. What happens if our banking people decide otherwise and say they will not participate or will only co-operate partially with the inquiry? It is incumbent upon the Minister to issue a decree that all members of banks - governors, directors, chief executive officers and those involved in staffing - are to comply fully with this investigation. If they do not, the banking inquiry will be a wasted opportunity and will let those who need to be brought to account off the hook.

The public has lost faith in the Government, the regulatory authority and the banking fraternity itself. Deputy George Lee stated: "The collapse of trust has led to the breakdown of the banking system and a further deterioration in faith in the regulatory system". We need to allow our banking system to gain trust and work with the people. I doubt that what is being proposed by the Government will achieve that. We must demand answers and we must have results from this inquiry. If we do not have accountability, what will happen in the future? What will happen to the ordinary person, an gnáth duine? We have an opportunity to work with what we have. We may not like it but it is an opportunity that must not be lost, because if it is, the noose will hang empty of those who brought this upon us.

I hope this inquiry will show not just what went wrong and the bad decisions and policies, but how we can prevent it from happening again. We must never again have a situation in which ordinary people, small and medium-sized enterprises and those who put away their life savings are left penniless. A woman came into my office yesterday who, because of the malaise in the banking fraternity, has lost everything. She is left with nothing because she saved money for a rainy day or for her retirement. This inquiry must work. I am afraid I have no faith in what has been proposed, but I hope I am wrong. The Minister must listen to the clarion suggestions being given by the Opposition, not just here but also in the other House.