Vol. 529 No. 4
36 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the position of each inquiry being conducted either within or on behalf of her Department; and if she will make a statement on the matter. [2005/01]
Five examinations of company books and documents are ongoing under section 19 of the Companies Act, 1990. The companies involved are Celtic Helicopters Limited, College Trustees Limited, Guinness and Mahon (Ireland) Limited, Hamilton Ross Company Limited and Kentford Securities Limited. The examinations of Kentford Securities Limited and Celtic Helicopters Limited are at an advanced stage and I expect to receive final reports on these companies in the coming months. The examinations of Guinness and Mahon (Ireland) Limited, Hamilton Ross Company Limited and College Trustees Limited are continuing.
In its judgment of 28 July 2000 the High Court quashed the section 19 appointments to Dunnes Stores Ireland Company and Dunnes Stores (ILAC Centre) Limited. Considerable issues of law have arisen from that decision. An appeal has been lodged to the Supreme Court and will be heard on 2 July 2001.
A further six investigations have been completed to date, namely, National Irish Bank Financial Services Limited, under section 59 of the Insurance Acts; Bula Resources (Holdings) plc, under section 14 of the Companies Act, 1990; Garuda Limited, t/a Streamline Enterprises; Ansbacher (Cayman) Limited; Irish Intercontinental Bank Limited; and Faxhill Homes Limited – the latter four under section 19 of the Companies Act, 1990.
The reports on Bula Resources (Holdings) plc; Garuda Limited, t/a Streamline Enterprises, and National Irish Bank Financial Services Limited are with the Director of Public Prosecutions for consideration. Consultations with my legal advisers are ongoing regarding the initiation of summary prosecutions for breaches of the Companies Acts identified in the Bula report.
Twenty-nine summonses have been issued against Faxhill Homes Limited and its directors in respect of breaches of the Companies Acts. The case is being heard in Naas District Court. The defendants have pleaded guilty to three offences under section 91 of the Companies Act, 1963. The case will resume on 5 March 2001.
As regards the section 8 High Court inquiry into Ansbacher (Cayman) Limited, the current inspectors are Mr. Paul Rowan, chartered accountant; Ms Noreen Mackey, barrister at law; Judge Sean O'Leary, Circuit Court, and Mr. Michael Cush, senior counsel. The inspectors are operating to the mandate of the High Court and will make reports to the court in due course. I expect it will be at least six months before this inquiry is completed.
The section 8 inquiry into National Irish Bank Limited and National Irish Bank Financial Services Limited is also ongoing and I hope the inspectors' inquiry will be concluded shortly.
Will the Tánaiste be more specific as to when reports will be completed in the five investigations directly under her control? For the past 18 months she has been telling us continually that they will be completed within a few weeks or months. Will she indicate a deadline by which she hopes they will be completed?
Six have been completed.
There are five outstanding.
A number may be completed around the same time as they are interconnected. I assume, therefore, that the authorised officer will not be in a position to finally complete any one of them until all the information at his disposal has been fully investigated. A small team is involved in these investigations which, from the taxpayer's point of view, are relatively inexpensive. There has, however, been enormous litigation, some of which has found its way into the public domain. Notwithstanding this, Mr. Gerard Ryan, in the main, and his team have done an outstanding job.
I expect a number of the outstanding inquiries to be completed by the summer of this year. I understand the report on the inquiries into National Irish Bank – the inspectors will report to the High Court – is imminent and may be delivered very soon. The procedure in relation to a section 8 inquiry is that a draft report is sent to those affected to give them an opportunity to respond. In the interests of natural justice, this is necessary, although it does delay somewhat the conclusion of a report. Notwithstanding this, the inquiries into National Irish Bank will be completed shortly and a report submitted to the court.
Because of the volume of work, I increased the number of inspectors involved in the inquiries into Ansbacher (Cayman) Limited by one after Mr. Justice Costello had to stand down on health grounds. He was replaced by Mr. Justice O'Leary and Mr. Michael Cush, senior counsel. The additional inspector will greatly assist in bringing that investigation to an early conclusion. Again, it will not be a matter for me. They are officers of the High Court and will report to it, either on an interim basis or by way of a final report.
I hope the remaining inquiries with Mr. Gerard Ryan in the Department will be completed very soon. As I said on Committee Stage of the Company Law Enforcement Bill, it is my intention to introduce transitional arrangements to allow him to conclude the reports as he is not moving to the new office. It would be inefficient to begin the process all over again or hand it over to a new officer. It is right that he should conclude the reports. He is literally working every hour, including weekends and late nights, to try to bring the work to an early conclusion.
In the light of what the Minister has just said and that a small team is involved in her Department in producing – to avoid confusion – the Gerard Ryan reports, is it a question of the team not receiving enough resources to complete the investigations?
We have run out of time. I would like to give the Minister an opportunity to reply briefly.
Will the Tánaiste comment on the fact that it is being replaced by the Office of the Director of Corporate Enforcement which will have a more elaborate budget?
Resources are not an issue. Additional accountants were assigned to help the officer in his work, but it is a slow process that involves interviewing people, which can take a considerable length of time. A large number of people are involved in many of these inquiries, which take a lot longer than might otherwise be the case, but the reports are all the stronger and professional for this. To date, with the exception of the Dunnes Stores application, the reports which have been completed have stood the test of time.
