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Nyberg report a catalogue of failure – Doherty

19 April, 2011 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty has described the Nyberg report as a catalogue of complete failure.

Speaking after the publication of the report this afternoon Deputy Doherty said the report clearly finds that the Government policy added to the collapse in the banking sector.

Deputy Doherty said:

“This is a catalogue of complete failure across the board from the Financial Regulator, the Central Bank, the Government, auditors and bank management.

“A property bubble fuelled by profit motivations of banks, a deficient system of checks and balances and the lack of appetite for enforcement fostered the conditions that led to the bank guarantee on 29th September 2008.

“We are at a situation where our economic fortunes are in the hands of the EU and the IMF and this can be traced back to the mismanagement of the banks by the regulator, the Central Bank and the Department of Finance.

“This incompetence in governance was crystallised when the then Financial Regulator and the governor of the central Bank had publicly insisted in the weeks before the guarantee that the Irish financial system was robust, adequately capitalised and in a position to withstand the turbulence sweeping through the markets.

“These were the actions that led us blindly into the most damaging economic decisions ever taken and these are the decisions that have put us under EU/IMF control.

“It is important to remember that the previous Government excluded its fiscal policy from the terms of reference for this Inquiry into the banking crisis and its omission does not mean it is pardoned from its role in this crisis.

“This report clearly finds that the Government policy added to collapse in the banking sector. Warnings from others who criticised their policies weren’t heeded. But the Government dismissed these. Sinn Féin repeatedly called for stronger regulation, caps on remuneration, an end to property inflation, fair tax policy based on stable direct taxation and counter-cyclical budget policies.

“The previous government’s attitude to dissenters is now being replicated by the current government’s attitude to those dissenting to the EU/IMF programme and in respect of the un-sustainability of our debt burden.

“This Government needs to learn the lessons of this report and not go down the same road as its predecessor in dismissing anyone who dares bring forward an alternative view or proposal.”

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