PAC publishes framework for a banking inquiry

The PAC report:

• identifies a broad range of issue that should be the subject of an inquiry,
• gives a roadmap to that inquiry in its recommendation on the scope of an inquiry and
• outlines a legal framework which will enable the inquiry to proceed.

Given the legal restrictions placed on the Oireachtas, the Committee is recommending an inquire, record and report model where findings of fact or culpability will not be made, but where the causes of the collapse and the steps that should have been taken to prevent the crisis will be discussed.

A key focus and the recommended starting point for the Inquiry will be the Bank Guarantee.
 
Chairman of the Committee, John McGuinness, TD said: “In effect that bank guarantee section relates primarily to the crisis management both before and after the issuing of the guarantee. This is the area where there is the least amount of public knowledge as it has the most unanswered questions.

What we are proposing is that this be the first pillar of the Inquiry because this allows us to take evidence on how the crisis occurred and how it was managed, whether the information that fed into decision making such as the guarantee was sufficient and whether there was a full evaluation of the options available and why was the guarantee broad in nature.”

Deputy McGuinness said it is now approaching five years since drastic action was required to save the banking sector. The State not only issued a guarantee to protect the banking sector but it had to put €64 billion into the banks.

“It is not unfair to say that the banks almost brought down the State and if ever an issue required serious follow up by Parliament, surely it is this,” he said.

“Until we get accountability we will not learn the lessons that are a forerunner to putting in place safeguards and oversight that will ensure that we never again repeat the mistakes of the past which have led, not only to almost all of our domestic banking sector falling into  State ownership, but also an economy that is still on its knees arising from the property bubble that was facilitated in no small way by reckless lending.”

Download report.

For further information please contact:

Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2

P: +3531 618 3903
M: 086-0496518
F: +3531 618 4551

Committee of Public Accounts

Membership

John McGuinness (Chairman)
Kieran O’Donnell (Vice Chairman)
Paul J Connaughton,
John Deasy,
Paschal Donohoe,
Gerald Nash,
Simon Harris,
Michael McCarthy,
Mary Lou McDonald,
Sean Fleming,
Eoghan Murphy,
Derek Nolan,
Shane Ross