Sean Barrett (Independent)

Recently, Professors Karl Whelan, Brian Lucey and Stephen Kinsella addressed the finance committee on this matter. It is fair to say that Senators from all sides of the House support them, the Minister and the Governor in what they are seeking to do.

In terms of parliamentary control over public finances, promissory notes could be called a departure from best practice at best, and perhaps even a sleight of hand. Apparently, the decision was that the Government did not want to ask the Oireachtas to raise extra taxation to pay for the episode in question and the markets would not lend it the money, which led to the idea of promissory notes. Previously known as letters of comfort, they have been seriously criticised by the Comptroller and Auditor General.

I invite the Leader to convey to the Minister for Finance not just our support for the latter's efforts but the fact that, in a reform agenda that is badly required, there would not be much of a role for letters of comfort or promissory notes. The Oireachtas must have control over moneys spent. This was a particularly disastrous episode, any reversal of which would benefit us immediately. Going straight to the principals is better than any minor relief, such as extend and pretend. The issue of promissory notes could be a major boost for morale, as alleviating the consequences of what the banks did to the country would be important. This could be the start of the process of reforming the public finances.