Dáil Éireann debate -
Tuesday, 16 Feb 1999

Vol. 500 No. 4

Written Answers. - National Irish Bank Investigations.

Brendan Howlin

Question:

47 Mr. Howlin asked the Tánaiste and Minister for Enterprise, Trade and Employment the response, if any, she has received from the Revenue Commissioners or the DPP to the report of the authorised officer into certain matters involving National Irish Bank and its associated companies; when the final report of the inspectors appointed by the High Court to these companies will be completed; and if she will make a statement on the matter. [4147/99]

Nora Owen

Question:

119 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if the report on investigations into overcharging by National Irish Bank will be published; the number of people involved in this investigation; the length of time it took; the cost and value of the overcharging; and if she will make a statement on the matter. [4278/99]

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

I propose to take Questions Nos. 47 and 119 together.

In my reply of 3 November 1998, Official Report, Vol. 495, Col. 1524, I indicated that the report of the authorised officer into the sale by National Irish Bank Financial Services Limited of certain insurance products had been passed to the DPP and Revenue Commissioners. While I have no information as to the DPP's intentions in the matter, the Commissioners have sought further documentation and information from the authorised officer who is continuing to deal with their queries as they arise.

At my request, the High Court appointed Messrs. John Blayney and Tom Grace as Inspec tors on 30 March 1998 to investigate the affairs of National Irish Bank Limited and that inspectors' remit was extended on 15 June 1998 to cover its subsidiary, National Irish Bank Financial Services Limited. I expect that the cost and value of the alleged overcharging by National Irish Bank Limited of its customers will be dealt with in the inspector's final report. The work of both inspectors is being supported by an average of about seven full-time staff from PricewaterhouseCoopers, excluding outside expertise such as legal advisers.

A legal challenge to the inspector's work by certain National Irish Bank managers was only resolved in the Supreme Court on 21 January last. The inspectors are answerable to the court for the performance of their duties, and while they have filed a number of interim reports with the High Court since their appointment, I understand it will be some time yet before the inspectors will be ready to submit their final report. The High Court will decide in due course whether and to what extent this report should be published.

I have recently been advised that National Irish Bank Limited and National Irish Bank Finanical Services Limited plan to commence High Court proceedings for the purpose,inter alia, of excluding from the remit of the inspectors any matters which are being investigated by the Comptroller and Auditor General, pursuant to the Comptroller and Auditor General and Committees of the Houses of the Oireachtas (Special Provisions) Act, 1998, and the resolution passed by Dáil Éireann on 17 December 1998. It is my view that any decision by the High Court to accede to this request will seriously damage the prospects of the inspectors completing their work in an expeditious and comprehensive manner. Accordingly, I have indicated to the bank that I will be opposing in court its attempt to discharge the inspectors from any element of their court-ordered mandate. A hearing of the bank's application will take place shortly.