Paschal Mooney (Fianna Fail)

I welcome the expressions of concern regarding the civil servant whose remarks were widely publicised in the media at the weekend. I also compliment the Chairman of the Committee of Public Accounts who has stated that the PAC will investigate this issue, as well as other related issues.

This is not the first time the media have revealed advice given to senior officials in the Department of Finance, which they studiously ignored at a critical time in the country's development. Our party suffered from this to an extraordinary degree, as history now reveals. Questions are now being asked about what went on during that period. That is why I welcome the promise of the investigation by the Committee of Public Accounts. It will investigate the issues surrounding the events of that time.

About a year ago, it was reported in the newspapers that a freedom of information request had revealed that, for a year following the introduction of 100% mortgages, the office of the Minister of State with responsibility for housing, Deputy Noel Ahern, constantly and regularly corresponded with the Department of Finance to warn of the adverse impact of 100% mortgages on the ability to repay of many of those who were taking up these mortgages. The advice was studiously ignored. In fact, the Department of Finance went so far as to say that the percentage of those who would acquire 100% mortgages was so small that it would have no impact on the housing market. We now know this is a major issue and it is regularly debated in this House. The Government is grappling with the consequences of the introduction of 100% mortgages.

It is somewhat ironic, in light of today's debate on the fiscal treaty, that Ireland kept within the rules up to and including the crash of 2008.