McDowell: 'Political incompetence' was part of economic crash

Former Tánaiste Michael McDowell said the banking inquiry has shown that "political incompetence" played a role in the economic collapse.

The former Progressive Democrat leader was speaking at the MacGill Summer School in Co Donegal after his former Taoiseach, Bertie Ahern’s, appearance before the committee’s members last week.

Mr McDowell said the Committee has shown that the Central Bank was "majorly incompetent" and "did not do" what it was supposed to at the time of the crash.

McDowell denied he himself was responsible for "light touch regulation" - but he said politicians were too trusting of the Central Bank.

"It is, in the last analysis, the business of the government of which I was a member - and other governments - to make sure that the Central Bank is competent.

"I think they were trusted too much, by the Department of Finance, to do their own thing, when they weren't tooled up to do it."