ANSWERS given by the Governor of the Central Bank, John Hurley, at a meeting of the Economic Regulatory Affairs Joint Oireachtas Committee, were proof, if proof were needed, that a fundamental root and branch reform of the Irish financial regulatory system is required without delay.
Mr Hurley was quick to concede that a problem with financial regulation in Ireland existed and that the system, which has been employed here in the past, was fundamentally flawed in its attempts to serve the public.
He accepted that his advice was not always taken and that he had issued warnings to the regulator on various occasions.
I put the point to him that part of the problem is that we have had a cosy regulatory community, populated by people who, by and large, have spent their careers in either the Department of Finance or the Central Bank and this has resulted in the regulated entities having run rings around the regulators with dire consequences for the economy generally.
Mr Hurley went on to tell the committee that a rite of passage did not exist which gave former secretaries general of the Department of Finance the right to seamlessly pass for the role of Governor of the Central Bank, saying that such appointments had been on the back of the choices made by various ministers for finance and governments of the day.
He also accepted that there are undoubtedly others in the financial sector who should step down from their positions but that this should happen in a structured way.
In defending his decision to recommend that Anglo Irish Bank should not be allowed to fail prior to the state guarantee scheme, Mr Hurley said that, under the circumstances, his advice was well founded as every attempt had to be made to avoid a knock-on effect on other financial institutions.
He conceded that the architecture of financial regulation and supervision in Ireland needs broad ranging review and reform - a call long echoed by Fine Gael.
Every required step must now be taken to secure our banking system and ensure confidence in the Irish market is restored again.
Senator Paul Coghlan
Ballydowney
Killarney
Co Kerry
