Cowen: Banking inquiry not a matter of priority

A BANKING inquiry is not a matter of priority for the Government according to the Taoiseach, Brian Cowen, who said the factors that led to problems in financial institutions will be examined “in due course”.

Mr Cowen was yesterday accused of “covering his own tracks” by refusing to set up such an inquiry in the near future, while the Government begins work on the National Assets Management Agency (NAMA) and tries to restructure the banking system.

As the opposition increased pressure for such an inquiry, Mr Cowen said the Government would give “careful consideration to what mechanism will be devised to see what lessons can be learned and should be learned” but “the priority at the moment is to continue solving the problem”.

Labour Party leaderEamon Gilmore said Mr Cowen “is reluctant because I think he is concerned that the buck will stop with him”.

“He was minister for finance for four years in the lead-in to the banking crisis; responsible for the management of our economicaffairs. And I think that his reluctance to have an inquiry has to do with covering his own tracks.”

Following an address to a conference hosted by Citi Bank in Dublin, Mr Cowen said the Government is “in the process of providing stability in our banking system” and in the coming months will focus on the impact of NAMA for financial institutions.

However, Mr Gilmore said a banking inquiry must be “part and parcel” of the process of restoring confidence in the financial institutions and getting them lending to small businesses.

Labour will be bringing a motion before the Dáil calling for an inquiry.