FINE GAEL leader Enda Kenny has accused senior Fianna Fáil figures of being “afraid” to hold an inquiry into the banking crisis, while Green leader John Gormley said the Government would consider an investigation.
Mr Kenny yesterday said he would call for a Dirt-style inquiry by an Oireachtas committee when the Dáil resumes, adding that he would nominate Fine Gael TD Michael Noonan as its chairman.
“I note in the recent past that all other parties, bar Fianna Fáil, have indicated that they share our view on an inquiry being established. Even within Fianna Fáil there are elements calling for such an inquiry,” Mr Kenny said.
“On the other hand senior figures in Fianna Fáil are clearly afraid of what such an inquiry will unearth regarding their recent period in government.”
Mr Kenny yesterday appealed for cross-party support for a committee based on the 1999 public accounts committee (PAC) investigation into Deposit Interest Retention Tax (Dirt) evasion by banks.
“We have to ensure that the kind of crisis that crippled our banking system and economy can never happen again and that those in positions of authority in the lead into the crisis are held to account,” he said. “That is why I support the call from Patrick Honohan, governor of the Central Bank, for an inquiry into how the banking crisis came about.”
Mr Kenny said the inquiry would examine political and regulatory failures and would not infringe on investigations under way by the Fraud Squad and the Office of the Director of Corporate Enforcement.
Minister for the Environment John Gormley said the Government had said “very clearly” it would consider the matter of an inquiry, although the Cabinet had not yet considered the issue. In the context of compellability and “constitutional issues”, he thought a referendum would be required.
“Well of course, I think it’s very important that we look at this in a very real way but that it doesn’t distract from the very important business of actually getting our banking sector up and running again,” Mr Gormley said.
“But yes, the Government will be looking at the issue in detail, considering all of the issues, and particularly constitutional issues because you have to have an effective committee, a cost-effective committee as well, and you do that by ensuring that there is compellability, that’s the only way that you can get to the bottom of any of these issues.”
Senior Fianna Fáil figures recently ruled out an investigation in the immediate future. Minister for Foreign Affairs Micheál Martin last week said an inquiry would be established but it was not an immediate priority for the Government. He refused to be drawn on a date, strongly indicating it would not happen during 2010.
Last night a Fianna Fáil spokesman said while there was “no question of people being afraid”, issues such as Nama and the capitalisation of the banks had to be finalised before an inquiry could take place.
Labour Party leader Eamon Gilmore has previously backed calls for a Dirt-type inquiry into the banking crisis. Economist Colm McCarthy called for such an investigation last August.
Meanwhile, Mr Kenny outlined how Fine Gael in power would wind down Anglo Irish Bank in an interview on RTÉ Radio One’s This Week programme.
“I would wind it down in conjunction with the European Central Bank over a period of seven to 10 years,” Mr Kenny said.
“I believe that what’s about to happen now is that the Government will come back to the taxpayer with a further request for a further €6 billion. I believe we could save the taxpayer about €3 billion by winding it down.”
