Banking inquiry members welcome shorter report but Government may beef up investigations if necessary

Banking inquiry members have given a guarded welcome to their drastically cut-back report into what caused the economic crash amid claims the Government may seek new powers to beef up investigations if it fails to meet public demand.

Several inquiry members confirmed last night the cross-party group now has “something we can work with” after a week of drama that raised fears the €5m year-long investigation was on the verge of collapse.

Last week, inquiry members Fine Gael TD Eoghan Murphy and Labour senator Susan O’Keeffe were asked to rewrite a 750-page report drawn up by back-room officials which had 1,000-plus inaccuracies.

Inquiry members were allowed to examine the reworked document, which runs to 300 pages and includes 10 chapters instead of the original 27, before the file is signed off on Thursday.

The dates are key to ensuring the report is published before the general election due to an unavoidable legal rights of reply period for those named in the report which begins this weekend.

Fine Gael TD Eoghan Murphy

Not all inquiry members have examined the report and no findings have yet been drawn up. It is understood the new report has scrapped sections on the build-up to the Celtic Tiger and subsequent bust, the role of the media, and the relationship between builders, developers, and bankers, with the focus instead on the bank guarantee and bailout.

News of the report’s progress came as junior health minister Kathleen Lynch said the inquiry’s difficulties show the October 2011 referendum to give Oireachtas inquiries greater powers of investigation — which was voted down by 52% to 48% — should be rerun.

The Cork North Central TD told RTÉ the move could form part of Labour’s election manifesto.

However, responding to reporters, Tánaiste Joan Burton said: “I remain to be convinced there would be an absolute requirement for another referendum, I want to see this inquiry do its work.”