The Government has rejected a Labour Party private members’ motion for a Dirt-style Oireachtas committee inquiry into the banking crisis by 78 votes to 73.
The party had also called for legislation to be introduced based on a Powers of Inquiry Bill prepared by Labour.
During the debate on a banking inquiry, Minister for Finance Brian Lenihan stressed that for “an investigation to proceed speedily and cost-effectively, it must be able to conduct its business in private.
The only other alternative that allows us to conclusively investigate a matter is a Tribunal of Inquiry” which would be too costly and protracted.
He rejected assertions by Labour finance spokeswoman Joan Burton questioning the legality of the governor of the Central Bank carrying out an investigation into that organisation.