Banking inquiry stalled over compromise fears

Efforts to set up a banking inquiry have been stalled after a legal warning to the Government that witnesses at hearings may be “compromised” by public comments they made previously.

Public Expenditure Minister Brendan Howlin yesterday revealed the dilemma for an inquiries system and said there were issues preparing legislation for an Oireachtas committee of inquiries.

The Government is keen to establish an inquiry into the banking crisis after failing to pass the Oireachtas inquiries referendum last year.

Asked about progress being made on establishing such a banking inquiry yesterday, Mr Howlin told TDs that legal advice had stalled the legislation on setting up such a probe.

There were some final concerns about the legislation to be handled “so people are not compromised by utterances in advance”, he told the Public Accounts Committee.

PAC chairman and Fianna Fáil TD John McGuinness has put proposals to Mr Howlin to lead any such inquiry into the banking system.

However, Mr Howlin has said that it may be a matter for investigation by the finance committee, which is led by a Labour TD.

Asked to clarify his comments by the Irish Examiner afterwards, Mr Howlin said that the legal advice on problems with witnesses had come from the Attorney General’s office.

He said while preparing the legislation for an inquiry system, it had emerged that anything previously said by a potential witness might compromise their appearance at a committee.

It is understood that draft legislation on the inquiries system has been circulated to the government departments.

Mr Howlin wants the legislation for inquiries to include provisions which safeguard them against legal challenges.