Minister’s Brief

In March 2011, NTMA reported that burden sharing for senior and junior bondholders
could be introduced but the withdrawal of ELA was threatened by ECB to prevent
Government from imposing senior losses. The ECB position in November 2010 &
March 2011 contributed to significant banking debt on Irish citizen.
Recommendations in relation to the Minister and Department of Finance
Based on the findings above the Committee made the following 9 recommendations relevant
to the Department:
Banks
Review Section 33AK Central Bank Act 1942 so that only documents deemed secret by
a high court judge can be withheld from future Oireachtas inquiries.
State Institutions
A formal legal process should be introduced in situations where there is conflict
between advice provided by the Department of Finance on matters of exceptional risk
and the decision proposed by the Minister.
An Independent Budgetary Office, possibly part of IFAC, should be established to
provide independent costing for Oireachtas members.
Department of Finance’s Banking Division should be periodically subject to third-party
performance review to ensure adequate fiscal, capital market and banking expertise,
in order to challenge CB assumptions.
Clear guidance should be produced on minute taking throughout the civil service.
Government Policy & the Oireachtas
Agreement should be made as to the proportion of total tax revenue from
cyclical/transaction taxes, and triggers in place for when they are breached.
Preparation for the Crisis Recommendations
NAMA
Legislation governing powers of Minister for Finance regarding directions to the NTMA
should be reviewed.
The operation and effectiveness of NAMA should continue to be reviewed, especially
when medium-term property price movements can be taken into account. A
comprehensive review should be undertaken when NAMA completes its work.
Burden Sharing
Government should seek to have European statues amended to allow ECB to
participate in parliamentary inquiries.
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