Call for Government officials to face banking inquiry
Taoiseach Brian Cowen tonight faced demands to allow Government officials to give evidence to a parliamentary watchdog after he agreed to be questioned over his role in the banking crisis.
Responding to calls from the Opposition, Mr Cowen said he would appear before the Dail committee charged with drawing up the plan of action for an official inquiry into the financial meltdown.
“The Taoiseach of the day is available to meet with the committee when you decide how to proceed,” he said.
Documents relating to the bank guarantee scheme from the Department of the Taoiseach would also be opened for scrutiny, he told the Select Committee on Finance and Public Service.
However, these would be subject to Cabinet confidentiality arrangements and, in any case, he insisted there was little paperwork that would shed light on the near banking collapse.
“We don’t have a plethora of documents,” he said.
But Fine Gael leader Enda Kenny said revelations that the Department of Finance warned the Government from 2005 onwards about the property bubble required officials to also answer questions.
Mr Kenny said the Taoiseach has always blamed the collapse of US bank Lehman Brothers and the advice he was given as former finance minister for the banking crisis.
“This now appears to have been contradicted by officials from the Department of Finance,” the Opposition leader said.
“That is why the Taoiseach must now commit to making himself and Government officials available to give evidence during the summer months on what advice was given to Mr Cowen during his tenure as finance minister.”
Appearing before the committee to discuss estimates for the public service, Mr Cowen argued that his department did not have a separate budgetary, economic or banking analysis to the Department of Finance.
Labour deputy leader and finance spokeswoman Joan Burton had said there was a “symbiotic relationship” between the two departments in relation to the bank guarantee scheme.
She insisted both departments needed to be open for examination by those heading up the banking inquiry.
Earlier this week, Finance Minister Brian Lenihan said the commission of inquiry into the crisis would cost €2m.
The investigation, based on findings from reports by economists Klaus Regling and Max Watson and Central Bank governor Patrick Honohan, will take six months.
