Inquiry chair guarantees to give people answers

Almost six years on from the banking collapse, an inquiry into what happened is finally in sight. But well before the parliamentary hearings get underway, the inquiry is already the centre of political disagreements and has suffered its first preemptive strike, with one of the key players, former ECB boss Jean-Claude Trichet, declaring that he will not appear.

Inquiry chairman Ciaran Lynch believes there will be many challenges, but is nonetheless optimistic that the banking inquiry — carried out by an Oireachtas committee comprising nine members — can and will give the people some explanations about the events that have had long-lasting consequences.

“There is very little evidence or documentation in the public domain surrounding the events leading up to and including that night,” he said, referring to the middle-of-the-night decision by the Fianna Fáil and Green Party coalition in September 2008 which ultimately cost the State €64bn.

“There has been no first-hand public account by those involved in the process and the inquiry will allow the public to hear for the first time, in the first hand, those people explain the reasoning behind their decisions during the crisis period,” he said in an interview with the Irish Examiner.

The Labour TD and chair of the Oireachtas Finance Committee is careful not to say anything that might preempt discussions on what should be included in the inquiry’s terms of reference.

Public hearings — which will include evidence from former Fianna Fáil taoisigh Brian Cowen and Bertie Ahern — are not expected to begin until next spring, with a first report out in summer 2015 and a final report in the winter.

So will it just turn into a platform for the current Coalition to bash Fianna Fáil and remind voters of its failures in office just months out from the next general election planned in early 2016?

Mr Lynch insists “team jerseys will be left at the door of the committee room” and that “there will be no space for politicising of the process”.

He said the law governing Oireachtas inquiries, which will be used for the first time, “is very clear that if people engage in such behaviour or engage in showboating they can actually be removed off the inquiry”.

It will, however, be hard to claim the committee is not politically biased if its government majority is used to ensure it only examines the actions of the previous administration, and not the current one.

One member, Fianna Fáil’s Michael McGrath — whose party was central to the decision to guarantee the banks — said this must not be the “singular issue” probed by the inquiry.

“Of course that has to be an important part of the inquiry, but for that to be the sole focus would unfortunately lead us to the conclusion that it is about maximising political advantage for the current coalition,” said Mr McGrath.

He wants the inquiry to examine the role of the ECB and its refusal to allow the burning of senior bondholders in bailed-out banks following requests from both the current and previous administrations.

“It is ultimately a decision for the inquiry team to decide the inquiry plan, so I won’t be drawn on that at the moment,” Mr Lynch said. “My job is to ensure it is done by means of co-operation and consensus.”

However, he insisted that “it does have to be a measurable body of work that can be done within the specific timeframe”.

Another member — Independent TD Stephen Donnelly — has proposed adding one more to the inquiry team so there are an equal number of Government and opposition members, and removing the party whip from the committee’s work.

Mr Lynch is not sure about this proposal: “All parliamentary committees are reflective of the democratic make-up of the Dáil.

“This is a parliamentary inquiry, it is neither a government nor an opposition inquiry. It is a job of work that has to be done by the members of the committee on behalf of the Irish public, not on behalf of their political position within the Dáil structure.

“It is necessary that the inquiry team approach it with open minds. Nobody has a monopoly on wisdom and no one should prejudge the outcome of the inquiry.

“This is an opportunity to show an example of the parliament at its best and is an opportunity for politicians to leave their club jersey at the committee room door.”

However, Mr Lynch advised that the public have to be measured in their expectations. “Nobody is going to go to jail or is going to face a conviction,” he said.

“The committee has to give an understandable explanation as well as account to the Irish public as to what actually happened.

“It has to identify if the alarms and firewalls were there, and if they were not there have they now been put in place, because I think the inquiry itself — along with establishing statements of fact during this period — also has to draw findings that have a value for the future.”