Decision to issue Anglo promissory notes 'unconstitutional', court told

A businessman has claimed in a High Court action that the Government's decision to issue €30bn worth of promissory notes to financial institutions Anglo Irish Bank, Educational Building Society and Irish Nationwide Building Society is unlawful.

David Hall has brought a challenge aimed at have the notes declared void, and preventing the State from having to pay out, because the decision to issue them was never approved by the elected members of the Dáil.

He also claims that the provisions of two acts which allowed the Government issue the notes are unconstitutional.

Mr Hall's proceedings against the Minister for Finance, the Attorney General, The Central Bank of Ireland, Irish Bank Resolution Corporation (Anglo) and the EBS arise out of a 2010 decision to provide €30bn to Anglo (€25.4bn) and the other two institutions in the form of promissory notes, which are to be repaid with interest over a period of 15 years.

He claims that the Dáil was never consulted or had the right to vote or express an opinion on what he says was a huge promise.

The Irish people, he also claims, are being asked to honour a deal made in flagrant breach of our the Irish Constitution.

The deal has no democratic legitimacy and is in breach of the Treaty for the Functioning of the European Union, it was submitted.

Mr Hall of College Grove, Castleknock, Dublin 15 said that "for some time he has had grave reservations about the manner and way the public finances of the country have been run".

Moving the action today John Rogers SC, appearing with Ross Maguire SC for Mr Hall, said their client is seeking a number of declarations from the court include that provisions of Section 6 of the Credit (Financial Support) Institutions Act and section 34 of the Anglo Irish Bank Corporation Act 2009 are repugnant to the Constitution and are unlawful.

Mr Hall, who is also a founder of the New beginning group, further claims the provisions of the acts constitute a circumvention of the primacy of Dáil Éireann in respect of State Finances and constitute an unwarranted and unlawful attack on the Irish Constitution.

The application, made ex-parte (with one side present) yesterday before Mr Justice Michael Peart.

The Judge granted Mr Hall's lawyers permission to serve the respondents with notice of his proceedings.

The Judge made the action returnable before the High Court on Wednesday.