State to consider banking crisis probe

Taoiseach Enda Kenny said the Government will reflect on plans for a public inquiry into the banking crisis amid proposals that such a probe could be wrapped up in three months.

A stumbling block for an inquiry is the need for legislation to force former bankers or taoisigh to attend hearings, and rules governing confidentiality of ministerial papers to be waved.

Mr Kenny said yesterday the Government had made no decision on sanctioning the inquiry, after proposals this week from a high-level committee of TDs, but would consider the idea.

The Oireachtas Public Accounts Committee (PAC) said that, if legislative changes are made by the end of the year, public hearings could begin by January.

PAC chairman John McGuinness said yesterday that the changes were needed to partially release paperwork surrounding the night the bank guarantee was agreed in September 2008.

He told RTÉ’s Morning Ireland: “I believe that the legislation is absolutely necessary because a lot of the paperwork around the whole bank guarantee, leading into that guarantee and thereafter, will be necessary to examine and, therefore, we will need the Cabinet confidentiality rule waved in relation to those papers.”

PAC can currently summon civil servants or sitting ministers for hearings but may need more power to compel former bankers and taoisigh to attend.

He said a public inquiry could be wrapped up within three months.