Dáil considers DIRT-style probe

The Dáil’s public spending watchdog is to consider launching a DIRT-style inquiry into the collapse of the country’s banking system.

It follows the recent defeat of a constitutional referendum to grant greater powers to the oireachtas to investigate major issues of public concern.

The Dáil Public Accounts Committee (PAC) confirmed yesterday that it intends to advise the Minister for Public Expenditure and Reform Brendan Howlin it is examining the possibility of conducting an inquiry into the €400 billion bank guarantee of September 2008 and the consequent crisis in the banking system.

however, PAC chairman john mcguinness admitted the committee might need new legislation to conduct such an inquiry. he pointed out the DIRT inquiry, carried out over a decade ago by the PAC under Jim Mitchell, had also required extra powers to complete its investigations.

“It is now clear that the Public Accounts Committee is the only Oireachtas committee which has the powers to inquire into the banking crisis after the proposed constitutional amendment was defeated,” said Mr Mcguinness.

The Comptroller and Auditor General, John Buckley, who has had access to documents from the Department of Finance, the Central Bank and the Irish Financial Services Regulatory Authority, is due to present a draft report to the PAC on events leading up to the bank guarantee scheme within weeks.

Mr Mcguinness said the committee would examine its findings before a decision would be taken on how to proceed with any inquiry.