Dáil Éireann Debate, Tuesday - 2 February 2010
237 Deputy Richard Bruton asked the Minister for Finance if civil servants will be freed from the prohibition on commenting on public policy at the proposed banking inquiry and the subsequent Oireachtas hearings; and if the secrecy surrounding Cabinet confidentiality will be waived. [4765/10]
View answerThe Government has agreed a framework for a comprehensive investigation into the causes of the systemic failures in the Irish banking sector which will take place in two stages. The first stage of the investigation will consist of the preparation of two separate preliminary reports; one from the Governor of the Central Bank and a second from Mr Klaus Regling, a recognised international expert. The governor will examine and report on the performance of the functions of the Central Bank and the Financial Regulator, and Mr. Regling will be asked to conduct a preliminary investigation into the crisis in the Irish banking system and to inform the future management and regulation of the sector.
The second stage of the investigation will be the establishment of a statutory Commission of Investigation, which will be chaired by a recognised expert of high standing and reputation. It is envisaged its remit will be to examine and report on the causes of the systemic failures in the Irish banking sector which culminated in the need for the State guarantee, the recapitalisation programme, the nationalisation and rescue recapitalisation of Anglo Irish Bank and the establishment of the National Asset Management Agency in order to preserve financial stability.
Of course, the terms of reference will not be set until we have the benefit of the preliminary reports from the Governor of the Central Bank and from Mr. Regling and the views of the Oireachtas in relation to them. In examining these issues, the Commission of Investigation will have the powers available to it under the relevant legislation, which the Deputy is aware are substantial.
Under Article 28.4.3 of the Constitution, the confidentiality of discussions at meetings of the Government must be respected in all circumstances save for the limited exemptions provided for in the Article.
The framework agreed by the Government for the investigation will allow the causes of the systemic failures in the Irish banking sector to be identified and provide a basis for the work of the Commission of Investigation.
