Vol. 524 No. 1
1 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the current status of the various inspections and inquiries being carried out in her Department; when she expects these inquiries to be completed; and if she will make a statement on the matter. [21622/00]
2 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment the current position in regard to each of the inquiries being carried out by or on behalf of her Department; the progress made in respect of each such inquiry since 12 June 2000; the inquiries in respect of which reports have been referred to the DPP; and if she will make a statement on the matter. [21813/00]
I propose to take Questions Nos. 1 and 2 together.
Since 12 June last I have considered the authorised officer's report on IIB Bank Limited, formerly known as Irish Intercontinental Bank Limited, and I have forwarded a copy, as permitted under section 21 of the Companies Act, 1990, to the High Court inspectors appointed to Ansbacher (Cayman) Limited, the Moriarty and Flood tribunals, the Minister for Finance, the Central Bank and the Revenue Commissioners.
On 27 July last the Ansbacher inspectors obtained a High Court order requiring the issue of a letter of request to the Royal Court of Guernsey in the Channel Islands for the purpose of assisting the inspectors. I expect that it will be six months before this inquiry can be completed.
On 28 July the High Court decided to quash my appointment of an authorised officer to Dunnes Stores Ireland Limited, and Dunnes Stores (ILAC Centre) Limited, under section 19 of the Act. My appeal against this decision will shortly be lodged with the Supreme Court.
On 31 July the inspectors to National Irish Bank Limited and National Irish Bank Financial Services Limited submitted a further interim report to the High Court relating to this inquiry. I hope the inspectors' inquiry will be concluded shortly.
As previously indicated, five examinations of company books and documents are ongoing at present in my Department under section 19 of the Companies Act, 1990. The companies involved are Celtic Helicopters Limited, College Trustees Limited, Guinness & Mahon (Ireland) Limited, Hamilton Ross Company Limited, and Kentford Securities Limited I hope to receive final reports on a number of these companies in the coming months.
The reports on Bula Resources (Holdings) plc, Garuda Limited and National Irish Bank Financial Services Limited are with the DPP. I have no further information on his intentions with respect to any of these reports. My Department has separately instituted proceedings for breaches of the Companies Acts arising from the report on Faxhill Homes Limited
The Minister stated on 13 June last that the authorised officers in her Department would complete their investigations within a few weeks. Is it correct that one of the main reasons there has been a delay in bringing some of these cases to completion is that crucial information has gone missing from her Department?
No, there is no truth in that whatever.
When was the IIB report referred to Mr. Justice Costello?
I do not know the precise date, but it was referred to Mr. Justice Costello between July and August.
Does the Minister accept that the delay in bringing into the public domain the results of any one of the investigations she has undertaken is undermining the confidence of many people such as myself who would have supported the initiatives taken by the Minister when she assumed office? Is she in a position to inform the House when members of the public are likely to be able to assess the outcome of any of these significant investigations? Does she accept that people's confidence is being corroded and their cynicism enhanced by virtue of that fact that some years after she assured the public that they would receive this information it has yet to become available?
The Bula report, which was a section 14 inquiry, has been in the public domain for some time. It was quite legitimate to place this report in the public domain.
With regard to Ansbacher, National Irish Bank and National Irish Financial Services, these companies are under investigation by High Court inspectors. Affidavits were put before the court based on what we had discovered in the preliminary inquiries under section 19 and under the Insurance Acts. Those affidavits revealed a considerable amount of what was discovered by the authorised officers. It is now a matter for those inspectors to report to the courts. As the Deputy is aware, they do not report to me.
I expect that the NIB inquiry will conclude shortly. The Ansbacher inquiry will probably take up to six months. As the Deputies are aware, IIB had a role in relation to the conduct of Ansbacher related business and it was for that reason I referred that report, in the first instance, to the inspectors.
Deputy Rabbitte is aware, given that he initiated inquiries in this area, that under law I am prohibited from bringing section 19 reports into the public domain. To do so would be a criminal offence. If we were to change the law we would be faced with a different set of circumstances and a preliminary inquiry of that nature would have to be conducted in a different fashion if it was going to become a public document. However, I have no doubt that the matters which are the subject of section 8 inquiries will enter the public domain reasonably quickly. The remaining report which the authorised officer in my Department is working on will be concluded shortly. Where a section 8 inquiry is warranted, I will proceed to seek the permission of the High Court to appoint section 8 inspectors.
As the Deputy is also aware, we have sought to gain access to Dunnes Stores for a considerable period and there have been a number of court cases in this regard. Obviously, nobody is above the law and we cannot proceed until we obtain appropriate authorisation from the court to proceed in relation to that inquiry in particular. Some of these matters have been delayed because citizens have not co-operated with the authorised officer and others have been delayed as a result of litigation. It is fair to say, however, that in less than three years an enormous amount of work has been carried out.
The report of the Revenue Commissioners shows that on foot of the authorised officer's report into NIB, at least £16 million in tax arrears has been paid and the Revenue has not yet settled with a number of other people who are named in that report. The reports to which I refer are being highly successful in ensuring that increased revenues accrue to the State. However, there are limitations and difficulties have arisen. If people do not co-operate, it takes a great deal of time to complete investigations. It is painstaking work to go through accounts which date back 20 years in many cases.
I accept that this is a complex matter. If we leave Bula aside, is the Minister stating now that most of the inquiries and investigations she has initiated have effectively moved outside her control? I understand there are three section 8 investigations under way. When the Minister says she will be able to bring these into the public domain in the near future, is she able to provide a precise date in that regard? If one considers the history of this matter it becomes apparent that the Minister has given the same reply on successive occasions at Question Time. Is the Tánaiste in a position in October 2000 to indicate when the section 8 investigations will be brought into the public domain?
As Deputy Rabbitte who had responsibility in this area knows, section 8 inspectors report to the court, they do not report to me. It is a fact that I receive copies when they make interim reports to the court. The inspectors report to the High Court, of which they are officers, and it is a matter for that court to decide. I expect the two section 8 inquiries into NIB to be completed very soon. The recent interim report the inspectors submitted to the court would indicate that the final report will be completed in the near future. The Ansbacher inspection will probably take up to six months. The three inspectors, Mr. Justice Costello, Ms Noreen Mackey and the accountant, Mr. Paul Rowan from Northern Ireland, are working extremely hard. They have interviewed a considerable number of people and I expect they will finalise their report soon. Two tribunals of inquiry have been sitting for exactly the same length of time. All this very important, if sometimes unsavoury, work will change fundamentally the culture that exists in Ireland.
I have not simply waited for the result of these inquiries. We have proceeded with the publication and discussion of the Company Law (Enforcement) Bill. I proceeded to bring in legislation in this area because of what came to light during these inquiries. Extraordinary work was done for a relatively small sum of money – a later question has been tabled about the cost of these inquiries – and it is only a matter of a short time before the section 8 inspectors' reports will be before the court and in the public domain.
On a number of occasions the Minister referred to the extraordinary work being done in these investigations for very little money. We do not know what is in these reports or if the work has been cost effective. Will the Minister elaborate on the work being done?
The Minister stated on 30 June last that she would make a decision on the IIB report in a few days, yet it took her nearly two months to refer the matter to Mr. Justice Costello. Why did this delay occur?
The decision in relation to the Dunnes case, which the Minister proposes to appeal to the Supreme Court, was taken ten weeks ago. Why has there been a delay in lodging this appeal with the Supreme Court?
The Minister has been quoted as saying that shocking revelations are contained in the reports. Is it not the case that she and her party are delaying disclosure of these revelations and positioning themselves in the light of a future general election?
On the Deputy's last supplementary question, if such were the case it would be an abuse of office. Deputy Bruton made a similar suggestion the other day. I utterly reject that suggestion.
The Deputy was briefed by the Secretary General of my Department this week and he is aware of the facts in these matters. The Dunnes Stores case has not been appealed to the Supreme Court because we are awaiting the written judgment of Mr. Justice Butler and there is a dispute between the two sides in the matter. I understood the Deputy was aware of that.
I was not.
A later question has been submitted regarding cost, but I believe it is in the region of £3 million for all the inquiries. The National Irish Bank report alone has brought in £16 million and it is not settled yet. On foot of the Ansbacher report a considerable amount of money has come into the Revenue Commissioners from some of the individuals named in the report. The inquiries have been extremely cost effective compared to other forms of inquiry. They have also been effective in revealing information because of the nature of the inquiries and the co-operation of some institutions, which I acknowledge.
I made a decision within a couple of days of receiving the IIB report. For legal reasons the formalisation of that decision was made later. I made a decision, however, about the course of action to be taken and I have followed that course.
