Banking Inquiry to hear from John McCarthy, Kevin Cardiff & William Beausang

23/06/2015

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, 24th June when it will hear from John McCarthy, Kevin Cardiff and William Beausang.

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

Session 1: 9.00 am – 11.00 am

John McCarthy, Chief Economist, Department of Finance

Session 2: 11.30 am – 2.30 pm

Kevin Cardiff, former Secretary General, Department of Finance (resumed)

Session 3: 3.30 pm – 7.00 pm

William Beausang, Assistant-Secretary, Department of 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 session we will hear from John McCarthy, Chief Economist at the Department of Finance.

“John McCarthy joined the Central Bank as an economist in 1996. In late-1996, he was seconded to the Department of Finance for a year, working as an administrative officer in the economics section. He was further seconded from the Bank to the Department over the periods 2001-2003 and 2004-2010 at a level equivalent to that of Assistant Principal in the civil service and, between 2010-2013, at a level equivalent to that of Principal Officer in the civil service. At all times in the Department he worked in the economic section of the Budget and Economic Division. He was appointed Chief Economist in November 2013, following an open competition.

“Among the lines of inquiry the Committee will address with Mr McCarthy are: inter-departmental contact and the Memorandum of Understandings with other EU states on the issue of banking; 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 nature and appropriateness of the relationship between the Central Bank including the Financial Regulator, 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; and the analysis of the key drivers for budget policy.

“Following this meeting, we will resume our hearing with Kevin Cardiff, former Secretary General at the Department of Finance. This second session will focus on developments during Mr Cardiff’s tenure from January 2009 until he left the Department. He was Secretary General at the Department of Finance from 2010 to 2012.

“At our final session tomorrow afternoon, we will meet with William Beausang, Assistant-Secretary at the Department of Finance. William Beausang joined the Civil Service in 1982. He was appointed Assistant Secretary in the Banking, Finance and International Division of the Department of Finance in April 2005. He transferred to the Government Reform Unit in the Department of Public Expenditure and Reform in July 2011.

“Among the issues of interest to the Committee at this meeting are: the formulation and reaction to crisis simulation exercises; the role, responsibilities and objectives of the Domestic Standing Group; the adequacy of the DSG process, including a consideration of the bank resolution legislation; the liquidity versus solvency debate; the appropriateness of the bank guarantee decision; the effectiveness and appropriateness of the supervision policy and powers; the adequacy of the assessment and communication of both solvency and liquidity risks in the banking institutions and sector; and the nature and appropriateness of the relationship between the Central Bank including the Financial Regulator, Department of Finance and the banking institutions.

“Other lines of inquiry include: 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 advice from the Department of Finance to Government and the use thereof by Government.”

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 11.30am-2.30pm and from 3.30pm-5.30pm.

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