Inquiry into banking collapse to be set up

PUBLIC ACCOUNTS COMMITTEE:THE DÁIL Public Accounts Committee has said it has agreed "in principle" to conduct an inquiry into the banking collapse within its current legislative powers.

The inquiry is expected to begin early in the new year. But its terms of reference will have to be legally examined before it can go ahead.

The committee had considered seeking additional legislative powers to carry out a Dirt-style inquiry, which would allow it to make findings. But following legal advice, it has decided to carry out an investigation into the financial market collapse within its existing powers.

The committee has been advised it can examine and report on the actions of specified public bodies including the Financial Regulator, the Central Bank and the Department of Finance.

It will be able to establish the facts behind the financial collapse, but it will not be able to make findings.

At its meeting yesterday, the committee said it would now draw up the terms of reference for the inquiry.

Chairman of the committee, Deputy John McGuinness, said last night that the committee had the power to compel witnesses from within State organisations, provided it was not making findings against individuals.

He said they would begin to work on the terms of reference for the inquiry as soon as possible and hoped to have them drafted within 10 days.

These would then be “legally stress-tested” to ensure they were within the legal framework of the committee’s powers.

Provided they are found to be within the committee’s legal remit, the body would move quickly and would hope to have a list of potential witnesses before Christmas, Mr McGuinness said.

They would hope to begin hearings in the new year. These would be separate from the committee’s normal Thursday meetings.

“We will have to balance the inquiry with our normal workload, which is considerable,” the chairman said.

The inquiry would have established start and finish dates, and additional support staff would be required for the duration of the inquiry to assist the committee’s existing three staff.

“Specifically the committee will report on the facts and detail the chain of events that led to our financial market collapse and resulted in huge costs on the exchequer,” Mr McGuinness said.

It would not examine policy or make findings, he said, but by conducting an investigation, and taking evidence in public, the inquiry would provide an important function in bringing clarity to other reports and commentary on the banking crisis and would put the information on public record.

“As well as being presented to the Dáil, the inquiry could form the foundation of any other report that may be conducted into the banking collapse,” he said.