State may owe €800m in costs for tribunal witnesses

The State faces a bill of up to €800 million in costs for witnesses who have given evidence at ongoing tribunals to date.

The Dáil Committee of Public Accounts (Pac) says the tribunals of inquiry have already cost the taxpayer €200 million. However, a report published by the committee yesterday says this figure largely deals with the State's own costs. It warns that there is no realistic estimate of the full cost of the inquiries.

Chairman Michael Noonan TD said this was because witness expenses were not assessed until the tribunal to which they gave evidence concluded.

Seán Fleming TD said experience had shown that the State's costs come to around 25 per cent of the total bill. "You are looking at €1 billion that will ultimately be paid by the taxpayer."

This means the State owes witnesses around €800 million in costs in addition to the €200 million it has already spent.

Under the law governing tribunals of inquiry, anyone who obstructs or fails to co-operate can be refused their costs, and may also have to pay their share of the State's expenses.

Former Fianna Fáil TD Liam Lawlor was jailed for failing to co-operate with what is now the Mahon tribunal which is inquiring into alleged instances of planning corruption.

The Pac's interim report, published yesterday, shows that the known cost of tribunals continues to rise. At the end of March 2004, it stood at €144 million. By the end of April this year, it was just over €200 million.

The report calls on the Department of Finance to find ways of controlling costs. The committee wants its civil servants to keep it informed of these efforts. It also recommends that the department should prepare estimates annually of liabilities for all tribunals.

Mr Noonan said the Mahon inquiry has effectively been self-financing as it has recovered money due to the Revenue Commissioners. The Ansbacher inquiry, which originally arose out of the McCracken tribunal, has recovered €47.8 million.