New committee for banking probe

The proposed Oireachtas banking inquiry will likely be held by a new committee, according to a source familiar with developments.

There has been a turf war between the Public Accounts Committee (PAC) and the Finance Committee over who would hold the inquiry into the causes of the banking crisis. A source says that an inquiry will most likely be held over the first six months of 2013, but a new committee will be formed to conduct the inquiry. Each political party in the Dáil would be able to nominate a member to that committee.

There had been speculation that this sensitive inquiry would not be given to the PAC because its chairman is Fianna Fáil’s John McGuinness. Fianna Fáil was in government when the banking crisis occurred.

The PAC published a preliminary analysis and framework for a banking inquiry in July. But key issues would still have to be resolved before a banking inquiry could proceed.

The Minister for Public Expenditure and Reform Brendan Howlin is trying to introduce legislative changes needed to set up a inquiry. He is looking into advice received by the attorney general’s office that previous comments made by witnesses could compromise their appearance before an Oireachtas inquiry.

The scope of the inquiry also has to be agreed. The two options are an inquiry that is narrowly focused around the decision by the Fianna Fáil/Green Party government to introduce the state guarantee of the banks in September 2008.

The other option would be a more far-reaching probe into the causes of the banking crisis and the consequences of the bank guarantee.

The issue of “compellability” of witnesses also has to be resolved, which will be crucial to the success of any inquiry. As it stands, an Oireachtas committee can only request that witnesses attend. It would need extra legislative powers to compel witnesses to appear before a committee.

Moreover, there could be issues with witnesses also appearing before the courts in a case against three former executives of Anglo Irish Bank — Sean FitzPatrick, Pat Whelan and Willie McAteer. There could also be a future case against former senior executives at Irish Nationwide.