Move to cap tribunal witness legal costs

THE Government will seek to cap the interest on third-party legal costs arising from the tribunals of inquiry when the Dáil returns in September.

Third-party costs are those of witnesses who give evidence to the tribunals. Because decisions on whether to award a witness their costs are generally not taken until a tribunal finishes each specific area of investigation, the question of interest on those costs can arise.

However, the Government, under pressure to curtail spending because of the deteriorating economic climate, has identified the tribunals as an area where costs can be reduced. And, knowing it will be unable to reduce tribunal lawyers’ fees, having tried and failed to do so in the past, it is instead looking at the area of interest on third-party legal costs.

“We’re going to introduce legislation in the autumn when the Dáil resumes to restrict the amount of interest that can arise on costs, third-party costs. The exact format of that legislation is being worked out,” Defence Minister Willie O’Dea said last night.

Mr O’Dea said the Government had also been in contact with the chairs of the tribunals, including the Mahon inquiry, which has been probing the personal finances of former taoiseach Bertie Ahern, to ensure they would finish their work this year.

“There has been communication along the line between the minister for the environment and the minister for justice and the chairpersons of the various tribunals,” Mr O’Dea told RTÉ’s The Week in Politics programme.

“We’ve been given to understand that the tribunals will finish their work this year, so, we are taking them at their word.”

The Government announced last week that it would look to cut tribunal costs as part of its plan to reduce spending by €440m this year.

Government departments are under pressure to adhere to the plan, which involves cutbacks and savings in a number of areas.

While the opposition has criticised the vague nature of the plan, Mr O’Dea insisted that departments would do their utmost to achieve it.

“Part of the cabinet decision also was that each minister has to report to the cabinet twice a month on the progress he or she is making,” he said.

“I’ve spoken to my colleagues [and] we’re all confident — quite confident — that we will be able to achieve the targets, and I wouldn’t like to be the minister going in to face my 13 colleagues, if I was the one person letting the whole show down.”

The cabinet comprises 14 Government ministers and the Taoiseach.