The essence of democracy is under question in the case taken by David Hall against the minster for finance which starts in the high court Tuesday January. 22nd. Hall is challenging the legality of the wretched Anglo promissory note . He is saying as I understand it that the constitution requires that all expenditure be approved by the Dail. That is where the power is. People elect TD' s who then in a democratic way vote on various matters including expenditure. The dail gives the government the money to spend . In 2010 the finance bill allowed the minister for finance to provide funds to the banks. Hall maintains that the dail can not give its constitutional powers to anyone else. Although not a lawyer my understanding is that one cannot alienate ones rights, not you, nor I nor the Dail.
The minister for finance on the strength of the 2010 bill created the now infamous promissory note. Halls constitutional challenge questions weather the promissory note was created legally as it was never approved by the Dail. It's hardly a small sum so it does seem odd that this was never subjected to a Dail vote.
A lot is riding on this case which will ultimately end up in the Supreme Court. If Hall succeeds then the Government will be faced with a very difficult situation of having to vote in the Dail and this might cause some issues for TD'S. this might be a chance to really negotiate with our European “friends. The government has put in place a high powered legal team to defend that which it is saying in Europe is indefensible. Expect these lawyers to do a super job, and expect the government to then face these arguments it is relaying to be used in evidence against it (and us) in Europe. This case won't be just about the constitutional niceties, but will inevitably raise issues of economics and bank solvency.
A smart government would not fight this case with rigour, but would let it lose, and then note that there was no way it could get something through the parliament. In reality they migh be hoping that the case, won or lost in the High Court, would result in a delaying of the need to pay the €3.1b in end march. That would put it up to the ECB. But Michael Noonan is not a man to eschew legal advice as the family of Bridget MCCole. Expect this one to run and run…..