Fine Gael not so close to developers, says Enda Kenny

Enda Kenny yesterday rejected claims Fine Gael was as close to developers as Fianna Fáil, despite reversing a decision to scrap a lucrative fundraising golf event under his watch.

The Taoiseach was forced to defend the situation during the bank inquiry hearing in which he also side-stepped questions over developer hospitality.

Speaking alongside Jobs Minister Richard Bruton, Mr Kenny staunchly defended his party’s pre-crash views, saying they differed completely from the Fianna Fáil-PDs coalition.

The Taoiseach said during the Fine Gael-led rainbow government the economy grew an “exceptional” 7% yearly. He said from 1997, under the Fianna Fáil-PDs government, it became “uncompetitive, bloated and over-exposed” to property.

This was challenged by Socialist TD Joe Higgins and Sinn Féin’s Pearse Doherty, who questioned if Fine Gael would have acted differently in power during the boom.

Mr Higgins said the then opposition party raised up to €150,000 a time by hosting lavish golf days at the K Club for “the biggest debtors in Nama”. Comparing the fundraising to Fianna Fáil’s infamous Galway Tent, he asked: “Was Fine Gael as close to developers as Fianna Fáil?”

However, Mr Kenny, who reversed former leader Michael Noonan’s decision to scrap the event, said his party was “certainly not” the same, stressing the vast majority of Fine Gael’s funding came from its national [charity] draw and was SIPO-allowed. He said anyone can take part in the €2,000 per team event and, while they had “no bearing on policy in any democracy, people are entitled to support whoever they wish”, leading Mr Higgins to respond: “Fianna Fáil answered the same way.”

Mr Doherty asked what Fine Gael would have done differently, as their 2007 election manifesto had similar growth and tax-cut figures as Fianna Fáil. When it was put to Mr Kenny that Fine Gael’s manifesto predicted 10% spending growth that was double the expected economic growth and similar to Fianna Fáil’s figures, he said the €17bn increase was based on ESRI predictions, and the similarity claim was “not right — we pointed out dangers”.

Mr Kenny was also asked about a November 19, 2008, phone conversation where he allegedly told Anglo chief finance officer and Castlebar native Matt Moran about recapitalisation plans. He said the conversation was of no substance.

Mr Kenny said Fianna Fáil caused the “lion’s share of the damage”, while Mr Bruton said social partnership prevented reform and the property boom had papered over the cracks.

However, Senator Marc MacSharry (FF) soon refocused questioning on Fine Gael’s disputed developer links. Asked bluntly if he received developer hospitality either by “road or air”, Mr Kenny responded: “What do you mean, getting a lift, travelling to Mullingar?”

However, he did not clarify if he received one. Instead, Mr Kenny asked the senator to explain “if you have an issue with something”.

Mr MacSharry asked if Mr Kenny had told anyone to “take MacSharry out” to give Government an inquiry majority. The Taoiseach said it “did not mean” the senator’s demise.