Anglo Irish Bank Corporation Bill January 2009
Second Stage Debate
Senator Ivana Bacik: I ask the House for permission to share half of my time with Senator Doherty.
I welcome the opportunity to put my thoughts on the record about this Bill. I echo the words of others on this side of the House to the effect that it is a real shame there is not more time to debate such detailed legislation, which we have only seen in a rushed manner.
We are debating in the absence of a great deal of important information that we need. I believe, just as I did when we were discussing the guarantee to the banks, that we are debating in vacuum, without access to the real facts and on the basis of assurances provided to us by the Government last September, which now ring hollow. In spite of the lack of information and the rush, I want to make three important points. As others said, it is vital that those at the top of Anglo Irish Bank are held accountable for the unacceptable practices, to use the Minister’s words, which occurred in the bank. I do not see how certain activities could not have implications in criminal law. There are very clear offences in the companies code under the Criminal Justice (Theft and Fraud Offences) Act that might clearly have relevance to some of the practices we have seen at the head of Anglo Irish Bank.
If unacceptable practices have gone on, as we know they have, it should be noted that we legislated to include Anglo Irish Bank in the guarantee in September. I was among the few Senators who voted “No” to the bank guarantee scheme. However, when it was supported by a majority in this House, it was on the basis of a misunderstanding. We assumed that the bankers were acting in good faith and we now know they were not. I wonder if there is not some basis for re-examining the guarantee in the light of the malpractice. The big question the Government has not answered is what the doomsday scenario will be if we do not nationalise Anglo Irish Bank. I believe questions need to be answered on that.
Committee Stage: Ammendment No. 2
Senator Ivana Bacik: I also support the amendment. It is an excellent idea that this sort of measure would be adopted. We have all agreed, on both sides of the House given the speeches I have heard in the debate, that accountability is key and that those at the top of Anglo Irish Bank responsible for effectively poisoning the entire banking sector in the State should be held accountable.
Issues of criminal law unquestionably arise and I was glad to see weekend reports that the fraud squad is investigating. However, what we heard tonight from the Minister is that it was not up to him whether investigations were carried out by the Director of Corporate Enforcement or by the Director of Public Prosecutions and so on, about which he is correct. This is where the amendment fills a gap. The problem is that the Minister has effectively dismissed the idea that he should take action to restore confidence in the integrity and accountability of our bankers, or that he should have any role in this regard. What the amendment clearly does is to give the Minister and the Oireachtas a role in appointing an inspector to investigate whether affairs have been conducted with intent to defraud, in other words, whether fraud has been carried out, and therefore to render much more transparent the dealings of the bankers at the top of our banking system. This is the sort of move that is required of the Minister and the Oireachtas to restore confidence in the banking system.
Many of the problems with Anglo Irish Bank in recent days, which were apparently the reason for the legislation itself, arose because many people were no longer willing to be associated with a bank that had become so closely identified with malpractice, and they were withdrawing money due to a lack of confidence and trust in the bank. That is key to this problem.
Many at the weekend were comparing Anglo Irish Bank to Ireland’s Enron. Again, there is an issue in this regard. If this is our Enron, then just as people were held accountable for what happened in the United States, so people should be held accountable here for what has happened with Anglo Irish Bank.
The Minister spoke earlier about being at the Galway races among people with an interest in horses. There is an element in this debate where we are effectively looking to close the stable door after the horses have bolted — given the Minister’s interest in horses, he may have an interest in that analogy. On a more serious level, it is very important to seek to restore confidence, which is key. The run on Anglo Irish Bank and the withdrawal of their money by depositors was due to a lack of confidence and the desire not to be associated with malpractice.
We need to restore confidence from the top. The fraud squad, the Director of Corporate Enforcement and the DPP should investigate, but this is a way in which we in the Legislature, and the Minister in the Cabinet, can be seen to be acting to restore confidence in the banking sector from the top by ensuring greater transparency and accountability. I urge the Minister to accept the amendment.
