Taoiseach Brian Cowen has told the Dáil there is “no question” of any inappropriate contact between him and former Anglo Irish Bank chairman Seán FitzPatrick with regard to the bank’s situation in 2008.
Speaking during Leaders’ Questions in the Dáil today, Mr Cowen rejected criticism by the leaders of the Opposition parties that he had not previously made known his contacts with Mr Fitzpatrick at a time when the bank was in crisis, prior to its nationalisation.
It emerged at the weekend that Mr Cowen had received a phone call from the then Anglo chairman in March 2008, and that he attended a dinner and also played golf with Mr FitzPatrick in July that year.
The two contacts occurred in 2008, some months before the Government guaranteed all the deposits and bonds of the State’s main financial institutions.
In response to a question from Sinn Féin's Caoimhghín Ó Caoláin, Mr Cowen also confirmed that other individuals were also present at the dinner with Mr FitzPatrick. Those people were Garry McGann, the chief executive of Smurfit Kappa, who was a director of Anglo at the time, Alan Gray, an economic consultant who was on the board of the Central Bank and the Taoiseach’s Garda driver.
Answering questions from Fine Gael leader Enda Kenny, Mr Cowen said he did not recall “at any time” a request from Sean FitzPatrick that he speak to the National Treasury Management Agency about investing in Anglo Irish Bank.
He said this had been confirmed by the former NTMA chief executive, Dr Michael Somers.
Mr Cowen confirmed his own friend and adviser Fintan Drury had phoned him to say Mr FitzPatrick was looking to speak to him. Mr FItzPatrick called him and brought him "up to date" with what happened. Mr Cowen said this would be a "matter for the regulator" and phoned Mr Drury back to tell him the position.
Mr Cowen said a meeting took place the following day, Good Friday, betweeen the Central Bank, the Financial Regulator and Anglo Irish Bank in Central Bank's offices in Dublin.
Mr Cowen said there was “no question of any inappropriate behaviour” by him, either as minister for finance or as Taoiseach and he wished to “refute” any suggestion that there was an “untoward relationship” whereby his party had protected Anglo or big business.
Mr Cowen said he had played golf with Mr FitzPatrick on July 28th 2008 at the request of Fintan Drury. He did not play much golf and had not played with Mr FitzPatrick either before, or since.
“That game took place. I didn’t discuss Anglo Irish Bank with him throughout that period at all,” Mr Cowen said.
He said the appropriate way for such matters would be to bring them to the Department of Finance.
He said he rejected “utterly” on behalf of the people who supported his organisation any suggestion of impropriety.
The decision with regard to the Government guarantee of Anglo was done because it was of systemic importance, he said.
“No game of golf and no phone call and no dinner will change that situation,” Mr Cowen added. It was an “absurd conspiracy theory” to suggest any impropriety.
Labour Party leader Eamon Gilmore said that on “every previous occasion” the Opposition parties had asked Mr Cowen the state of his knowledge about Anglo” and about how big a “hole” it was in and whether it was insolvent, he had not revealed his contacts with Mr FitzPatrick.
He said he would nearly blame Mr Cowen “more” if he had not discussed the Anglo position with Mr FitzPatrick during those 2008 contacts. Mr Cowen was leading people to believe that there had been in some way a “Chinese wall” constructed down the golf fairway when he played golf with the Anglo chairman.
Mr Gilmore suggested the “bottom line” was the that the Government provided a bailout and a bank guarantee that would lead people to pay more taxes and levies.
Mr Cowen said the same fiscal policies to deal with the country’s economic difficulties would still be in place even if there had not been a bank guarantee.
He told the Labour leader he was “no economic traitor” and that he had sought to “do my best for this country in the economic good”. He said there was no basis for such a contention and asked that it be withdrawn.
Speaking earlier, Mr Kenny referred to "collusion" between the Fianna Fáil party and big bankers and developers. He accused bankers and developers of "effectively stealing money from people".
Mr Kenny said Fianna Fáil had brought the country to a point "where Ireland simply is not working", although its people remained prepared to work and those who had jobs were working harder than ever. The Fine Gael leader added his party's agenda was to "get Ireland working".
Mr Cowen is expected to dissolve the Dáil in late February once the Finance Bill has been passed, with the likely date for the general election being March 25th.