Dáil Éireann díospóireacht -
Tuesday, 18 Jun 2002

Vol. 553 No. 2

Written Answers. - Departmental Inquiries.

Breeda Moynihan-Cronin

Ceist:

92 Breeda Moynihan-Cronin asked the Tánaiste and Minister for Enterprise, Trade and Employment the position in regard to each of the inquiries being carried out by or on behalf of her Department; the projected date for the conclusion of each such investigation; the inquiries in respect of which reports have been referred to the Director of Public Prosecutions; and if she will make a statement on the matter. [13636/02]

Breeda Moynihan-Cronin

Ceist:

116 Breeda Moynihan-Cronin asked the Tánaiste and Minister for Enterprise, Trade and Employment the total costs incurred by the State, at the latest date for which figures are available, arising from the various inquiries instigated by or on behalf of her Department; the elements of these costs which have been recovered from the other parties involved; and if she will make a statement on the matter. [13637/02]

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

I propose to take Questions Nos. 92 and 116 together.

Sixteen investigations into company law related matters have been initiated by me since I came into office in my previous term as Minister for Enterprise, Trade and Employment.

In respect of three of these, the High Court appointed, on an application by me, inspectors under section 8 of the Companies Act, 1990. The High Court inspectors appointed to Ansbacher (Cayman) Limited presented their report to the High Court on Monday, 10 June.

The National Irish Bank Limited and National Irish Bank Financial Services Limited section 8 inquiries are continuing. These reports are expected to be submitted to the High Court in the near future. As in the case of Ansbacher (Cayman) Limited, the question of whether the reports are published is entirely a matter for the High Court.

One investigation under section 14 of the Companies Act, 1990, was completed in 1998. The report on this has been passed to the Director of Public Prosecutions.

Eleven investigations were initiated by me under section 19 of the Companies Act, 1990. Four of these have been concluded. Of the four investigations completed, two of the reports were passed to the DPP. The file in one case was returned and a number of summary prosecutions have since been successfully concluded. One report provided an input into the successful application to the High Court for the appointment of inspectors under section 8 while the fourth report was passed to the relevant High Court inspectors.

Five investigations under section 19 are ongoing. Reports in respect of three of these five investigations are at a very advanced stage of completion. Two investigations were held up in legal appeals, on which a judgment was delivered on 5 June. The High Court ruled on certain constitutional issues which had been referred back to it by the Supreme Court. It is a matter for the Director of Corporate Enforcement to decide how to proceed on these latter investigations. One investigation was undertaken under section 59 of the Insurance Act, 1989. This report has been completed and referred to the DPP as well as to the inspectors undertaking the section 8 investigation into that company.

The costs incurred since 1997 on company investigations initiated by or on behalf of my Department currently amount to €9 million. This amount does not include the salary costs of Civil Service staff working on a number of these investigations. Similarly, the major proportion of the legal costs relating to the investigations is being borne by the Vote of the Chief State Solicitor. Most of this €9 million derives from the costs to date of the High Court inspectors appointed under section 8 – National Irish Bank 4.6 million and Ansbacher €3.1 million.

The question of recovering costs from the section 8 investigations does not arise until such time as the inspectors complete their investigations. This is one of the issues that the High Court will have to address when it comes to consider the Ansbacher report in detail. Section 19, as originally enacted, did not provide for the recoupment of costs. This has now changed with the enactment of the Company Law Enforcement Act, 2001.