Employees of National Irish Bank have an "absolute duty" to answer questions put to them by the inspectors appointed to investigate the bank's affairs whether or not those answers may incriminate them, counsel for the State told the High Court yesterday.

But counsel for NIB bank manger, Mr John O'Reilly, the nominated representative of more than 100 employees and former employees, said if the State required compulsory answers to questions about the bank's affairs, it should offer immunity. If there was no offer of immunity, his clients were entitled to invoke the privilege against self-incrimination, Mr Michael McDowell SC, argued.

Yesterday was the second day of the hearing of an application by the court-appointed inspectors to NIB, Mr Tom Grace and former judge Mr John Blayney, regarding the conditions under which employees and former employees of the bank may be interviewed.

In her submissions, Ms Fidlema Macken SC, for the State, argued that, where questions were being put or documents sought under Section 10 of the Companies Act 1990, as in this case, there was an obligation to comply.

The issue of what consequences might flow from those answers should be determined at a later stage, she said. The time to make any challenge to the use of compelled evidence in criminal proceedings was at trial, immediately prior to it or, if an individual was wrongly convicted, subsequent to trial.

There was no constitutional right not to have compelled evidence used against a person in a criminal trial, she submitted.

The court has heard the NIB inspectors planned to start the interviewing process on May 28th last but received correspondence from solicitors representing a number of employees and former employees which sought, among other matters, confirmation that their clients had the right to refuse to answer questions on the grounds of self-incrimination.

In the present application, the inspectors and the State are arguing that privilege against self-incrimination may be abrogated but this is disputed by Mr O'Reilly, manager of the branch at Patrick Street, Limerick. In an affidavit, Mr O'Reilly has said the NIB staff were extremely concerned that any answers they gave to questions put by the inspectors could be used in future criminal proceedings against them.

In his submissions yesterday, Mr McDowell, for Mr O'Reilly, said the State could not say a person had to answer questions and another court would decide the consequences of that.

The hearing resumes before Mr Justice Shanley on Tuesday.