Cowen urged to back Oireachtas inquiry into banking

Taoiseach Brian Cowen was today called on to back an Oireachtas inquiry into what led to the banking crisis.

Labour Party leader Eamon Gilmore said Mr Cowen should support an open parliamentary probe into the economic downfall similar to one into tax evasion in the late 1990s – which was televised.

Mr Gilmore said there was significant public and cross party support for an investigation, with Labour, Fine Gael and individual members of Fianna Fáil and the Greens backing the idea.

“But there has been a deafening silence from the Taoiseach and the other members of the Government on the proposal,” claimed Mr Gilmore.

The Dáil Public Accounts Committee has already agreed to meet in September to discuss a possible probe, mooted earlier this week by top economist and Bord Snip author Colm McCarthy.

Mr Gilmore said an inquiry could be modelled on the DIRT tax evasion investigation, which he maintained was carried out in a cost efficient and timely manner by a sub-committee of the Public Accounts Committee.

“The televising of the DIRT inquiry also ensured that the process was undertaken in an open and transparent manner,” he continued.

Mr Gilmore said decisions made by the banking sector, particularly in regard to the financing of property deals, has created an economic crisis of unprecedented seriousness and has the potential to place a financial millstone around the necks of successive generations of Irish taxpayers.

“They are entitled to know who made the key decisions and the circumstances in which they were taken,” he said.

“They are also entitled to know if the regulatory authorities and successive Ministers for Finance and their officials discharged their duties in an appropriate manner.”

“Given that there is clearly public support for the suggested inquiry, what we now need is a clear statement from the Taoiseach and the Minister for Finance that they will not only support but also facilitate the inquiry with such legislative and logistical support as would be necessary.

“Legislation to facilitate the inquiry could be put through the Oireachtas simultaneously with the passage of the NAMA legislation in September.”

Legislation needed for an inquiry and any terms of reference is expected to be discussed during the special meeting held by the Public Accounts Committee of next month.

Mr Gilmore warned the terms of reference of an inquiry would need to be carefully drafted so not as to jeopardise the investigation being carried out by the Director of Corporate Enforcement into activities at one bank and prejudice any possible prosecutions.

“The public want answers and are entitled to get them. The proposed inquiry is the best way to ensure that this happens,” he added.