Banking Inquiry to hear from Charlie McCreevy, Ann Nolan & Donal McNally

30/06/2015

The Oireachtas Banking Inquiry will continue hearings with senior officials from the Department of Finance who had key roles during the Crisis period tomorrow, Wednesday, 1st July when it will hear from Charlie McCreevy, Ann Nolan and Donal McNally.

The schedule for the meeting in Committee Room 1, Leinster House is:

Session 1: 9.30 am – 11.15 am

Ann Nolan, Second Secretary General, Department of Finance

Session 2: 11.30 am – 1.15 pm

Donal McNally, former Second Secretary General, Department of Finance

Session 3: 2.30 pm – 6.00 pm

Charlie McCreevy, former Minister for Finance

Chairman Ciaran Lynch TD said: “Tomorrow we continue our hearings with senior officials from the Department of Finance who had key roles during the Crisis period. At tomorrow morning’s first session we will hear from Ann Nolan, Second Secretary General, Department of Finance. Ann Nolan has worked for the Department of Finance since 1985. She has been Second Secretary General in the Financial Services Division of the Department since July 2010. Prior to this she was Assistant Secretary in the Financial Services Division and in the Public Expenditure Division at the Department.

“Among the lines of inquiry the Committee will address with Ann Nolan are: the role of advisors in analysing the crisis including crisis management options; the liquidity versus solvency debate; the effectiveness of reviews of banks’ loan books and capital adequacy; the decision to nationalise Anglo in 2009 and a review of the alternatives available and/or considered; the establishment, operation and effectiveness of NAMA; the decision to recapitalise Anglo, AIB, Bank of Ireland, EBS, Permanent TSB and the alternatives available and/or considered; the EU/ IMF/ECB programme of assistance; the Fiscal Compact Treaty and Sovereign Debt Restructuring Mechanism; and options for burden sharing during the period 2008-2013

“Other areas of interest are: the awareness and clarity of roles and accountability amongst the regulatory and supervisory institutions of the state; the nature and appropriateness of the relationship between the Central Bank including the Financial Regulator, the Department of Finance and the banking institutions; the effectiveness of the communication between the Central Bank and the Department of Finance; the appropriateness of the expert advice sought, quality of analysis of the advice and how effectively this advice was used; an analysis and consideration of the response to contrarian views, both internal and external; and the appropriateness of the relationships between Government, the Oireachtas, the banking sector and the property sector

“Following our meeting with Ann Nolan, the Committee will hear from Donal McNally, former Second Secretary General, Department of Finance. Mr McNally joined the Civil Service in 1969 and joined the Department of Finance in 1986. He has worked in the Department at various levels in banking policy, health spending, tax policy, the Budget and Economic Division and finally the Public Expenditure Division. He was appointed Second Secretary General in 2000 and headed the Budget and Economic Division until 2008 and the Public Expenditure Division until his retirement in 2012.

“Among the issues we will examine with Mr McNally are: the appropriateness of the macro-economic and prudential policy; the composition, skills, experience and number of resources at the Central Bank, Financial Regulator and Department of Finance; the nature and effectiveness of the operational implementation of the macro-economic and prudential policy; the adequacy of the assessment and communication of both solvency and liquidity risks in the banking institutions and sector; the nature and appropriateness of the relationship between the Central Bank including the Financial Regulator, the Department of Finance and the banking institutions; and the effectiveness of the communication between the Central Bank and the Department of Finance

“He will also be asked to give evidence on: the appropriateness of the expert advice sought, quality of analysis of the advice and how effectively this advice was used; an analysis and consideration of the response to contrarian views, both internal and external; the appropriateness of the advice from the Department of Finance to Government and the use thereof by Government; an analysis of the key drivers for budget policy; and the appropriateness of the relationships between Government, the Oireachtas, the banking sector and the property sector.

“At our final session tomorrow afternoon, we will meet with Charlie McCreevy, former Minister for Finance. Mr McCreevy was a member of the Dáil for County Kildare from 1977 to 2004. He held several senior posts in government and was Minister for Finance from 1997 to September 2004, after which he became EU Commissioner for Internal Market and Services from 2004 – 2010.

“Among the issues of interest to the Committee at this meeting are: inter-departmental contact and the Memorandum of Understandings with other EU states on the issue of banking; the appropriateness of the bank guarantee decision; the effectiveness and appropriateness of the supervision policy and powers; the appropriateness of the macro-economic and prudential policy; the effectiveness of the use of supervisory powers; the nature and effectiveness of the operational implementation of the macro-economic and prudential policy; and the adequacy of the assessment and communication of both solvency and liquidity risks in the banking institutions and sector.

“Mr McCreevy will also be questioned on: the awareness and clarity of roles and accountability amongst the regulatory and supervisory institutions of the state; the nature and appropriateness of the relationship between the Central Bank including the Financial Regulator, the Department of Finance and the banking institutions; the effectiveness of the communication between the Central Bank and the Department of Finance; the appropriateness of the expert advice sought, quality of analysis of the advice and how effectively this advice was used; the impact of the reliance placed upon information and reporting from statutory auditors of the banks; and an analysis and consideration of the response to contrarian views, both internal and external.

“Other lines of inquiry include: the effectiveness of the Oireachtas in scrutinising public policy on the banking sector and the economy; the appropriateness of the advice from the Department of Finance to Government and the use thereof by Government; an analysis of the key drivers for budget policy; the appropriateness of the relationships between Government, the Oireachtas, the banking sector and the property sector; and the quality and effectiveness of European policies and regulations.”

Further information on the Oireachtas Banking Inquiry can be accessed on this website. Full committee proceedings will be webcast live on this website, while Oireachtas TV will broadcast proceedings from 2.30pm-6pm.

Committee proceedings can also be viewed on the move, through the Houses of the Oireachtas Smartphone App, available for Apple and Android devices.

All media enquiries in relation to the Oireachtas Banking Inquiry should be addressed to:

Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2

P: +3531 618 3903
M: 086-0496518
F: +3531 618 4551

All general enquiries should be directed to the Committee Secretariat.

e. contactbankinquiry@oireachtas.ie
t. +353 1 618 3651

Committee Membership

Deputies

Ciarán Lynch (Chairman)
Pearse Doherty
Joe Higgins
Michael McGrath
Eoghan Murphy
Kieran O’Donnell
John Paul Phelan

Senators

Sean D Barrett
Michael D’Arcy
Marc MacSharry
Susan O’Keeffe