Madam, – The difficulties in the financial services sector may be attributed largely to ineffective corporate governance, poor macroeconomic management, and regulation lite.
There were domestic and international versions of each. We must draw on all our antibodies to fight the present infection.
Ireland must also play its part in tackling the causes, at home and abroad, through its international networks and communities.
The new regulatory architecture needs to avoid an artificial dichotomy between domestic and international institutions.
Irish taxpayers appreciate the contribution of well-run financial service companies creating wealth from an Irish base and serving international customers.
Ireland has obtained considerable help from Europe in our difficulty and US firms have located significant operations here.
No doubt consumers, taxpayers and policymakers internationally will welcome an Irish commitment to rigorous and robust regulation of institutions serving them from this jurisdiction.
Similarly, we should seek high standards for domestic consumers availing of services from international suppliers.
Northern Rock, Equitable Life and Independent Insurance all spring to mind.
It is also worth noting that local firms and resident individuals struggling to obtain credit at present understand what credit rationing internationally has done to domestic supply.
Having contracted a virus from international markets and learned something from that, we must also ensure we do not transmit one ourselves in the future. Just as we strive to be BSE, and foot and mouth free in cattle, we should also seek to be financial virus free.
That is what makes Irish exports of goods and services attractive, and Ireland a good place to have a farmhouse, or indeed to have a finance house. – Yours, etc,