Howlin rejects claim of bank probe ‘muzzle’

Public Sector Reform Minister Brendan Howlin has rejected claims the Government is trying to “muzzle” a long-awaited probe into the banking collapse.

Howlin rejects claim of bank probe ‘muzzle’

Mr Howlin denied a bitter Government turf war was raging behind the scenes as to which Dáil committee would finally seek the truth over what happened on the night the bank guarantee was imposed — saddling the country with more than €64bn in debt.

The minister hit back at claims from Public Accounts Committee chairperson John McGuinness that Finance Department officials are trying limit the effectiveness of an investigation.

Despite a history of swift, effective inquiries such as the one into the DIRT affair, the PAC believes ministers favour handing the inquiry over to the Finance Committee, headed by Labour TD Alex White.

Mr Howlin dismissed talk of turf war, insisting no final decision had been made, but pointedly downplaying the relevance of the DIRT inquiry. “The PAC have done a great deal of work on this, and I have also had a submission from the Finance Committee. There has been no determination yet.

“DIRT was a follow the money focus, what is required here is much more follow the policy focus.

“Government has one focus, to have the most robust form of enquiry that we can within the constraints of the Constitution which sheds as much light as possible as to who was involved politically and administratively in the decision-making process that lumbered this state in the calamitous situation that we found ourselves in.

“I re-echo that the view of government is one of absolute determination to get to the bottom of what happened in, or around, the night of the bank guarantee.

“I have an open mind on this and what we want to ensure is that we have the most effective method to get to the truth.”

Mr Howlin said the public’s rejection of a constitutional amendment last autumn which would have allowed Dáil committees wider scope to conduct investigations and apportion blame had made the situation more difficult.

Former Fianna Fáil minister Mr McGuinness believes that senior public servants are concerned the PAC would be too robust in its investigations. “There is at the heart of our administration a reactionary, unprofessional and inefficient group of senior public service managers, whose veneration of the status quo and the perks, pensions and pay it gives them is costing this country a very large fortune. It is a disgrace,” he said.

Independent TD John Halligan said it was alarming that no decision had yet been made.

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