Banking Inquiry to hear from Bertie Ahern, Paul Gallagher, Pádraig Ó Ríordáin & Eugene McCague

15/07/2015

The Oireachtas Banking Inquiry will continue its hearings tomorrow when it will meet with Bertie Ahern, Paul Gallagher, Pádraig Ó Ríordáin & Eugene McCague tomorrow, Thursday, 16th July.

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

Session 1: 9.30 a.m. – 11.15 a.m.

Paul Gallagher, former Attorney General

Session 2: 11.30 a.m. – 1.15 p.m.

Pádraig Ó Ríordáin & Eugene McCague – Arthur Cox, legal advisors to the Dept. of Finance

Session 3: 2.30 p.m. – 6 p.m.

Bertie Ahern, former Taoiseach

Chairman Ciaran Lynch TD said: “At our first session tomorrow morning’s sessions, we will focus on the legal advice given to the Government during the Crisis period. At our first session we will hear from former Attorney General, Paul Gallagher.

“Paul Gallagher was Attorney General of Ireland during the period from 2007 to 2011. Mr. Gallagher’s appearance here tomorrow has been facilitated by a decision of the government to waive legal privilege in respect of his oral evidence to this Inquiry, having regard to the exceptional circumstances of the financial crisis and the important mandate of this Committee to inquire into the financial crisis.

“Among the lines of inquiry the Committee will address with Mr Gallagher are: the role of advisors in analysing the crisis, including crisis management options; an appraisal of the conditions prior to increasing the Deposit Guarantee Scheme; the appropriateness of the bank guarantee decision; the decision to nationalise Anglo in 2009 and a review of the alternatives available and/or considered; and the establishment, operation and effectiveness of NAMA.

“Mr Gallagher will also be questioned on: the decision to recapitalise Anglo, AIB, Bank of Ireland, EBS, Permanent TSB and the alternatives available and/or considered; the Credit Institutions Stabilisation Act (2010) and the effectiveness of the actions to merge AIB and EBS, Anglo and INBS and deposit transfers; and the EU/ IMF/ECB programme of assistance.

“He will also be asked to give evidence on: the liquidation of Irish Banking Resolution Company, the promissory notes refinancing and the relationships with the ECB; options for burden sharing during the period 2008-2013; the role of the euro zone and international partners in this decision; the appropriateness of the regulatory regime; 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 advice from the Department of Finance to Government and the use thereof by Government.
“At our second session tomorrow, we will focus again on the legal advice given to the Government during the Crisis period when we will hear from two witnesses from the Arthur Cox law firm, Pádraig Ó Ríordáin and Eugene McCague.

“Pádraig Ó Ríordáin was Managing Partner of Arthur Cox from 2003 to 2011.He led the Arthur Cox team which advised the Irish Government on the Irish banking crisis. Eugene McCague is a partner with Arthur Cox since 1988. He served as Managing Partner from 1999 to 2003 and served as Chairman of the Board of Arthur Cox from 2006 to 2013. The appearance of the witnesses appearance has been facilitated by a decision of the government to waive legal privilege in respect of their oral evidence to this Inquiry.

“Eugene McCague and Pádraig Ó Ríordáin will both be asked to give evidence on the appropriateness of the bank guarantee decision; while Mr Ó Ríordáin will be questioned on: the role of advisors in analysing the crisis, including crisis management options; an appraisal of the conditions prior to increasing the Deposit Guarantee Scheme; the appropriateness of the bank guarantee decision; the decision to nationalise Anglo in 2009 and a review of the alternatives available and/or considered; and the establishment, operation and effectiveness of National Asset Management Agency (NAMA)

“Other lines of inquiry include: the decision to recapitalise Anglo, AIB, Bank of Ireland, EBS, Permanent TSB, and the alternatives available and/or considered; the Credit Institutions Stabilisation Act (2010) and the effectiveness of the actions to merge AIB and EBS, Anglo and INBS and deposit transfers; and the EU/ IMF/ECB programme of assistance; the liquidation of Irish Banking Resolution Company, the promissory notes refinancing and the relationships with the ECB; options for burden sharing during the period 2008-2013; the role of the euro zone and international partners in this decision; the appropriateness of the regulatory regime; 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 advice from the Department of Finance to Government and the use thereof by Government

“In the afternoon we will continue our hearings with senior members of the Government who had key roles during the Crisis period when we will hear from former Taoiseach Bertie Ahern. Bertie Ahern was a TD from 1977 until February 2011. He held several senior positions in government including that of Minister for Finance. He succeeded John Bruton as Taoiseach in June 1997 and continued to serve as Taoiseach until his resignation in May 2008.

“Mr Ahern will be questioned on: the nature and effectiveness of the operational implementation of the macro-economic and prudential policy; 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 effectiveness of the Oireachtas in scrutinising public policy on the banking sector and the economy; and the appropriateness of the advice from the Department of Finance to Government and the use thereof by Government.

“Other issues of interest include: 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; the formulation and reaction to crisis simulation exercises; the role, responsibilities and objectives of the Domestic Standing Group; and the adequacy of the DSG process, including a consideration of the bank resolution legislation.”

The Oireachtas Banking Inquiry has also published its second quarterly update on activity and expenditure.

Committee Chairman Ciarán Lynch said: “A key element for the Committee is that this inquiry will be conducted in an open and transparent manner. This not only relates to how the inquiry can be accessed and viewed by the public, but also in relation to how we conduct our business and monitor the running costs incurred by the Committee. We are committed to ensuring that the costs will be kept to a minimum.”

The quarterly update can be accessed here.

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 9.30am-11.15am and 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