THE GOVERNMENT has opted for a commission of inquiry rather than a parliamentary hearing into the banking crisis but the decision has been described as a “whitewash” by the Opposition.
Minister for Finance Brian Lenihan said two preliminary inquiries will be completed by the end of May, with a commission of inquiry under an expert chairman established by June 30th and asked to report by the end of the year.
Mr Lenihan insisted last night that an Oireachtas committee would then have an opportunity to examine the report and call witnesses if it wished.
The Minister defended the decision not to have the inquiry conducted by an Oireachtas committee, on the basis that it did not have the right to make judgments about disputed issues of fact. “The Oireachtas has a role to play when the basic disputed issues of fact are resolved,” he added.
Mr Lenihan told the Dáil there were a number of broad themes that ought to be examined thoroughly by the commission of inquiry.
They included the performance of individual banks and bank directors where wrongdoing and lax practices have contributed considerably to the crisis; the performance and structure of the banking system generally; the performance of the regulatory and Central Bank systems; and the response of the relevant Government departments and agencies, including the linkage between the banking crisis and overall economic management.
Green Party leader John Gormley said that he was happy with the shape of the inquiry and said the Oireachtas could have a role in calling people to account after the commission of inquiry had reported.
Fine Gael leader Enda Kenny said the Government’s proposal was designed to cover up Brian Cowen’s policy and regulatory failures during his four years as minister for finance, in the lead-up to the banking and economic crisis.
“The Government attempted to whitewash over the years of Government policy failures that led our economy over the edge of a cliff 18 months ago. Rather than a transparent and public inquiry into the policy decisions and regulatory failure that led to our banking sector collapsing, we have a secretive, behind-closed-doors process designed to delay and frustrate any public scrutiny . . .” he said.
Labour Party deputy leader Joan Burton described the Government proposals as a sham and said they represented total political humiliation for the Green Party.
