Promissory note law ‘so general it could be limitless’
The minister was given “carte blanche” by the Credit Institutions Financial Support Act 2008 to act as he chose and not told, for example, whether he should consider whether such institutions were insolvent, said John Rogers SC.
“All the act says is there is a financial crisis, deal with it, and the way to deal with it is to throw money at it,” said Mr Rogers.
The act was unconstitutional because it delegated the Dáil’s power to appropriate public monies for expenditure without setting limits on the amounts to be given to institutions or specifying any clear principles and policies governing the exercise of that power.
Mr Rogers was making submissions on behalf of United Left TD Joan Collins in her challenge to the legality of promissory notes made in favour of Anglo Irish Bank, the Educational Building Society, and Irish Nationwide Building Society as part of the State’s €31bn capitalisation of the institutions.
The notes, made under section 6 of the 2008 act, were unlawful because they involved the minister “appropriating” public monies for expenditure when, under the Constitution, that was solely a matter for the Dáil, the TD contends. The State rejects her claims.
The case continues today, when the State is due to begin its submissions.
