Dáil Éireann debate -
Tuesday, 30 Jun 1998

Vol. 493 No. 3

Written Answers. - National Irish Bank Investigations.

Nora Owen

Question:

25 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will report on the implications for the inquiries into National Irish Bank of a recent court action taken by the staff of the bank to ascertain whether they can decline to answer questions by the High Court inspectors lest they incriminate themselves; and if she will make a statement on the matter. [15726/98]

Breeda Moynihan-Cronin

Question:

34 Mrs. B. Moynihan-Cronin asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will use section 13 of the Companies Act, 1990, to obtain reimbursement of the costs of investigations into National Irish Bank. [15916/98]

Pat Rabbitte

Question:

56 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps, if any, she has taken, or intends to take, arising from the report of the authorised officer appointed under section 59 of the Insurance Act, 1989, to carry out investigations into the affairs of National Irish Bank; if the interim report of the two inspectors appointed on 30 March 1998 under the Companies Act has been received; and if she will make a statement on the matter. [15778/98]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I propose to take Questions Nos. 15, 34 and 56 together.

On 4 June 1998, I received an interim report from Mr. Martin Cosgrove, the authorised officer who was appointed on 23 March last under section 59 of the Insurance Act, 1989 to investigate possible breaches of insurance legislation in relation to National Irish Bank Limited. and its associated companies. Having taken legal advice on Mr. Cosgrove's interim report, I have in recent weeks furnished copies to the Director of Public Prosecutions, the inspectors to National Irish Bank Limited. and the Revenue Commissioners for their consideration.

As a result of information contained in Mr. Cosgrove's interim report, I determined that it was both necessary and appropriate to seek the appointment of a High Court inspector to examine the affairs of National Irish Bank Financial Services Limited.

The High Court granted my petition in this regard on 15 June, and the remit of the inspectors to National Irish Bank Limited. now extends to its associated company. As a result of this decision. Mr. Cosgrove's investigation is now being suspended.

Also on 10 June last, the Inspectors to National Irish Bank Ltd. presented their first interim report to the High Court at a sitting heldin camera and the court ordered that the report be kept confidential. However, in accordance with the court order, a copy of the Inspectors' interim report has been made available to my Department. As a result of a number of legal issues which have arisen in relation to the conduct of their investigation, the Inspectors to National Irish Bank Ltd. have now sought certain directions from the court. The specific relief sought by the Inspectors includes:

— a determination that persons (whether natural or legal) from whom information, documents or evidence are sought are not entitled to refuse to answer questions put by the Inspectors or to refuse to provide documents to the Inspectors on the grounds that the answers or documents may tend to incriminate them and

— a determination that the procedures proposed to be employed by the Inspectors are consistent with the requirements of natural and constitutional justice.

A hearing of the High Court took place on 25 and 26 June to consider the Inspectors' request, and submissions were also made on these matters by counsel acting for a representative employee of National Irish Bank Limited. In addition, both the bank itself and I are legally represented as notice parties at the hearing, which has resumed today.

As the matters involved aresub judice, it would not be appropriate for me to comment further.

Finally, I can confirm that on completion by the Inspectors of their investigations, I intend to seek directions from the High Court under section 13 of the Companies Act, 1990 that the State be reimbursed in full by National Irish Bank Limited. and National Irish Bank Financial Services Limited. for the cost of the Inspectors' investigations into both companies and for the legal costs of my petitions to the Court.