TUARASCÁIL ón gComhchoiste Fiosrúcháin i dtaobh na Géarchéime Baincéireachta An tAcht um Thithe an Oireachtais (Fiosrúcháin, Pribhléidí agus Nósanna Imeachta), 2013 REPORT of the Joint Committee of Inquiry into the Banking Crisis Houses of the Oireachtas (Inquiries, Privileges and Procedures) Act, 2013 Volume 1: Report Volume 2: Inquiry Framework Volume 3: Evidence Oireachtas OIR : Core Book 53 January 2016 Table of contents – by line of inquiry R5: Clarity and effectiveness of the Government and Oireachtas oversight and role R5d: Appropriateness of relationships between Government , the Oireachtas , banking sector and the property sector Bates Number Description Page [Relevant Pages] DOT00716 018 Letter from Alan Cooke Chief Executive Officer IAVI (Extract) 2-3 [001-002] DOT00727 Letter from Sean McEniff Tyrconnell Group, July 2000 (Extract) 4-6 [001-003] DOT00728 Letter from Taoiseach to Sean McEniff 25 July 2000 (Extract) 7-8 [001-002] Memo to Taoiseach and Letter from Hooke McDonald June 2000 DOT00729 9 (Extract) [001] Fax message from Taoiseach to DoE enclosing letter from Ken DOT00730 10-13 McDonald [001-004] DOT00736 Minutes of Taoiseach’s Meeting with Ken McDonald 20 09 2000 14 [001] DOT00745 Letter from O’Flynn, 27th April, 2004 15 [001] DOT00749 Briefing Note for meeting with O’Flynn 08 July 04 (Extract) 16 [001] DOT00750 Letter from Noel O’Callaghan to Dept of Taoiseach on planning 17-19 [001-003] DOT00751 52 Letter and enclosure from O’Flynn Construction (Extract) 20-23 [001-004] PUB00333 Interview with Brian Dobson 26 Sep 2006 (Extract) 24 [005] PUB00335 DCU Newswire on interview with Ahern in Summer 2011 25-26 [001-002] PUB00305 Development (acquisition of Development land) (Assessment) 27-32 [001-006] CB00002 Biographies of members of CB Board (Extract) 33-34 [002-003] CTX00003 Elaine Byrne Statement (Extract) 35-45 [001-011] PUB00309 Fine Gael Manifesto GE 2002 (Extract) 46-64 [002-020] PUB00310 [001-002, Fine Gael Manifesto GE 2007 (Extract) 65-72 004-005,080, 095-097] PUB00311 FT article 29 March 2009 on crony capitalism 73 [001] PUB00312 Green Party Manifesto GE 2002 (Extract) 74-76 [001,003-004] PUB00317 Irish Times Ahern criticises Cowen’ 77-78 [001-002] PUB00318 Irish Times Ahern Queries Government Handling 79 [001] DOF01891 Finance Minister’s diary Oct 2007.pdf 80-93 [001-014] PUB00320 Labour Manifesto GE 2002 (Extract) 94-96 [001-002,015] PUB00321 Labour Manifesto GE 2007 (Extract) 97-104 [002-005, 008-011] PUB00149 Manifesto Fianna Fail GE 2002 (Extract) [002-014,026-033, 105-127 069-070] PUB00150 Manifesto Fianna Fail GE 2007 (Extract) [002,004,033-037, 128-142 092-095, 149-152] PUB00151 Manifesto Fine Gael GE 2011 (Extract) 143-152 [005-009,017-021] PUB00152 Manifesto Green Party GE 2007 (Extract) 153-156 [003,010,015,016] PUB00153 Manifesto Labour GE 2011 (Extract) [007,011-019, 157-168 072-073] PUB00154 Manifesto Progressive Democrats GE 2002 (Extract) 169-178 [003-009,075-077] THEME: R5 Clarity and effectiveness of the Government and Oireachtas oversight and role LINE OF INQUIRY: R5d Appropriateness of the relationships between Government, the Oireachtas, the banking sector and the property sector 1 J(Y. 0 1 SEP 2008 IRISH AUCTIONEERS & VALUERS INSTITUTE " fHt· r 0/Gf· OF /R/1' H PROPt:Rn " 38 MERRION SQUARE, DUBLIN 2. TELEPHONE: +353 1 66 1 1794. FAX: +353 I 661 1797 29'h August 2008 c:maiL infoli! ia,•i.ic Internet: www.iad.ie ACNB An Taoiseach Mr Brian Cowen T.D. Mr Brian Lenihan T.D. Office of An Taoiseach Minister for Finance Upper Merrion Street Department of Finance DUBLIN2 Upper Merrion Street DUBLIN2 Mr John Gormley T.D. Mr Michael Finneran T.D. Minister for the Environment, Minister for State for Housing & Urban Renewal Heritage & Local Government Department of the Environment Dept. of the Environment, Heritage & Local Government Heritage & Local Government, Custom House Custom House, DUBLIN 1 DUBLIN I RE: RESIDENTIAL PROPERTY MARKET Dear Taoiseach and Ministers, The IA VI has read with great interest newspaper reports of considerauon being given b) the government to moves to spur activity in the housing market, as part of a packet of measures to stimulate the economy and I write to outline the views of the IAVI , which represents arow1d 2,000 qualified real estate professionals. There is no doubt that some radical measures are called for, but the need to ensure both that such measures encourage activity without fuelling unwarranted price growth and tltat the Exchequer's fiscal situation IS not worsened. must remain paramount in these difficult times. lt is reported that it is the intention of government to concentrate efforts on first-time buyers, including a possible expansion and restructuring of the affordable housing scheme. The IAVI is of the view that t11c level of transaction activity involving first time buyers in particular, and in the moderate end of the market generally, are crucial as sales in these sectors invigorate the entire market by providing the incoming buyers needed to enable otlters to trade up successfully. The IAVI strongly endorses the call by the Construction Industry Federation that the Housing Finance Agency's role should be e:--.'Panded in tem1s of ensuring liquidity for potential borrowers who arc fettered by what have quic!Jy become consenative loan criteria. with current loan-to-value ratios in tlle order of80-90% in major urban areas and 70-80% in other areas now being imposed by some lenders. Such LTV ratios make it extremely difficult for first-time-buyers to secure home ownership. The IAVT believes that the HF A can play a major role in improving liquidity and that it should be directed to do so. Mortgage loans that are undenvritten by the State, whether prm.ided directly or througl1 other bodies. would make a major difference and, in the view of the IAVI. persuade other lenders that Ill mming away from \vhat may have been overly generous lending policies in recent years, tltC) have over-corrected and that they should relax their criteria and increase available LTV ratios for suitable borrowers. Cont./... Principal Member of: ICREA • CEPI · FIABCI · TEGoVA · IVSC DOT02B04-V Chief Execuu\·c· Alan2 Cooke 1H\'1 FRICS r-scs DOT00716-001 lncorpomted as a Company l.1mited by Gunrnncec at Dublin in 1922 - Nun1ber 7 I 35 2 In tem1s of possible adjustments to affordable housing projects. the IA V1 believes that a reYitaliscd shared ownership scheme may provide the best solution. Existing schemes are ex'J)ensive. requiring that the borrower also finance Ute non purchased equity via rental payments. A Simpler solution would perhaps be a direct equity holding b) government in such properties. "ithout a tunc limit. Such a scheme would have the potential to pro,ide substantial windfalls for ti1c Exchequer in future years as properties arc sold on and the govcrrunent 's equity realised. From a buyer's perspective. the fact that titey would only have to finance the majority of the purchase price. rather Ulan 100% of it. would bridge perhaps the major gap in terms of affordability. llus could provide a win-win scenario all around. In relation to govenunent Ulinking on this issue, ti1e IAVI would strongly encourage you to ensure ti1at whatever measures arc introduced are applied to both new and second hand homes. as both market sectors are suffering enormous!) at present and both contribute to the up,,ard channelling of finance. confidence and mobility. By way of exception. and in order to bring demand closer to existing supply. we suggest titat iliere may be merit in considering tltc provision of full Section 23 style relief for the many existing but wtSold new housing wuts in many cities and smaller urban areas around tlte countr). Only when the current overhang of completed properties is cleared \viii builders have the confidence to build Ute nwnber of new homes that arc generally viewed as bemg required Wtthout Ulat impetus. there is a danger tltat scYeral years of inacti' ity on ti1e house construction front could once again lead to reversing the supply I demand ratio. with far less homes being built in the medium tem1 than will be required. The effect on propert) prices of such a situation would be self evident. 1l1e lAVI lauded the changes to the Stamp Duty regime introduced in Budget 2008. We still believe tltat Ireland's stamp dut) rates are \cry lugh by intcmational comparison and ti1at tile) arc a barrier to mobility anci therefore, an impediment to compctitl\cness. While not pressing for immediate further rcfonn of stamp duty on residential sales at this difficult time. we strongl) encourage government to keep this matter under revie'' "ith a view to a future capping of the top rate of residential stamp duty at a more equitable 6%. ratlter than the current penal rate of9%. We '"ill be making a separate Budget Subnussion to Mr Lenihan as Minister for Finance in regard to stamp duty on commercial transactions and on oUter issues. That said. we acknowledge that the changes to the banding mechanism. introduced last year and for which the IAVI had pressed for OYer 20 years. have brought greater equity and common sense to our stamp dut) regime. The lAVJ would support. as a short tcnn measure. the annual contnbution into ti1c National PellSion Reserve Fund being diverted to fund essential projects under the National Development Plan. While \\e arc supportive of the NPRF, it makes economic sense to ensure that vital infrastructural projects that can better Ireland Inc.'s competitive position for Ute future are not forestalled. By safeguarding our economic future as best it can. the government would do more to protect benefits for future pensioners titan channelling money into the NPRF at this time.