The Dail Committee of Public Accounts (PAC) DIRT inquiry does not intend at present to call former ministers for finance to question them on what they did and did not do in relation to bogus non-resident bank accounts.
The chairman of the PAC, Mr Jim Mitchell, yesterday read an opening statement where he outlined which agencies and institutions are to be called to give evidence. There was no mention of ministers for finance.
Sources said the PAC sub-committee which is conducting the inquiry is wary of calling former ministers as it would create party political tensions which the committee is anxious to avoid.
In his statement Mr Mitchell said the PAC "does not involve itself in policy issues and invariably works in an all-party manner. The committee does from time to time consider the consequence of policy decisions, the manner of their implementation, their statutory basis and, where relevant, the background to policy decisions".
However when outlining the issues which the sub-committee proposes to investigate Mr Mitchell, under the heading "the State and its agencies", said the committee will question the Department of Finance, the Central Bank, the Revenue Commissioners and other relevant departments or agencies. It will ask former and present officials from these agencies as to their knowledge of the scale of the bogus non-resident account problem, their powers and obligations in relation to the problem, actions taken, if any, and contacts and communications, if any, between them and the financial institutions.
There was no mention of any examination of communications between the agencies and ministers. Ministers for finance are responsible for the running of the Department of Finance and the Revenue Commissioners and are the people to whom the Central Bank reports. All witnesses called before the sub-committee will be directed to appear and give evidence under oath.
Former ministers for finance include: the Taoiseach, Mr Ahern, (November 1991 to December 1994); the former Taoiseach, Mr Albert Reynolds (November 1988 to November 1991); party leaders Mr John Bruton (February 1986 to March 1987) and Mr Ruairi Quinn (December 1994 to June 1997); Mr Alan Dukes (December 1982 to February 1986); and Mr Ray McSharry (March 1987 to November 1988).
The PAC's DIRT inquiry is the first time an Oireachtas committee has attempted to investigate such a large, controversial topic and if successful could pave the way for the replacement of inquiries by tribunal and the resultant costs.
At yesterday's hearing a number of financial institutions were represented by senior counsel. The committee is anxious that its inquiry is conducted to the greatest extent possible without the involvement of lawyers and it remains to be seen the extent to which it will be successful in achieving this objective. It is understood informal indications have been made by the financial institutions that they will keep the involvement of legal representatives to a minimum.
The suggested procedures for the inquiry which have been drafted by the sub-committee include the right of witnesses to cross-examine other witnesses where the committee believes such cross-examination to be relevant.
It is considered unlikely the financial institutions being called before the sub-committee will apply for costs. The legal counsels who appeared before the committee yesterday are among the best and most expensive in the Law Library and most have featured prominently in the various tribunals of recent years. See also page 2
