SEVERE CRITICISM of the Department of Finance over its role in the economic crisis was rejected yesterday at the Dáil Committee of Public Accounts by secretary general David Doyle.
Launching a sustained critique of the department’s performance, Labour spokesman on communications Tommy Broughan said: “There would be a strong perception that the department has let us down badly over the last six . . . Is it not fair to say that your record in 2007-2008 has been pretty disastrous?
“Our two leading banks are effectively zombie banks,” he added. “The core problem here is that you didn’t do your job and now our people have to pay the price.”
Mr Doyle responded that some of Mr Broughan’s remarks related to policy matters and it would not be appropriate for him to respond to them. “I don’t think I would accept your statement that the department has let the Government, the House and the people down.” He said Mr Broughan was “extrapolating” performance in the economy to performance in the department.
The analysis carried out by the department for 2007 took account of the factors that were known at the time, said Mr Doyle.
On the alleged failure to oversee banks, he said: “The Irish financial system is not independent of what’s going on in the rest of the world”. There had been “dramatic developments” in the US where mortgages were provided for people “with very little visible or prospective means”. The “Irish banking system has been hugely impacted by the international financial crisis.”
Mr Broughan said: “The bottom line is that a distinguished economist in the US can say Ireland is broke. You’re the dog that didn’t bark.”
Mr Doyle replied: “I have a bit of a reputation as a dog that does bark in the night.”
Chairman Bernard Allen intervened to say: “We don’t have the Minister for Finance here. Mr Doyle isn’t responsible for policy. Some of the questions are more appropriate to the Dáil chamber than here.”
Mr Broughan said Mr Doyle had “a central role” in getting us to this [situation].
At the urging of Mr Broughan, the committee deferred a vote on the Comptroller and Auditor General’s audit of the department until its next meeting.
In a discussion on corporate pensions, Mr Allen said it was “a scandal” that outgoing Irish Nationwide chairman Michael Fingleton was in line for a sum of €28 million. “As a citizen, I could express views,” Mr Doyle replied.
Labour’s Róisín Shortall said it was “outrageous” that for the past year she had been unable to get up-to-date figures on the cost to the exchequer of tax relief on the 6,500 self-administered pension schemes in the State, which she described as “corporate welfare to the wealthiest in our society”.
Fianna Fáil TD Michael McGrath asked: “Does the department have the skill set to lead us through the crisis? We need people with cutting-edge private sector experience in the department.”
Mr Doyle replied that a cadre of administrative officers had been recruited over the years and their “skill base and intelligence are outstanding”. Officials kept in touch with the private sector and the business community, he said. Senior positions were advertised on the open market but there had not been a great deal of interest from private sector applicants.
An assistant secretary general and a “specialised economist” were appointed from the private sector. “So we have made efforts”, he said.
