THE GOVERNMENT has said it believes the role of Ministers, including Taoiseach Brian Cowen in his four-year term as minister for finance, will be examined as part of the investigation into the banking crisis.
Minister for Finance Brian Lenihan said the role of Ministers fell within the remit of the investigation and the Government believes it is a theme that should be examined.
However, he said that including those themes in the investigation would be a matter for those in charge of the scoping investigations and not the Government. One of the preliminary inquiries will be conducted by governor of the Central Bank Prof Patrick Honohan; the other by an international financial expert, who Mr Lenihan said would be named “in a matter of days”.
There is no mention of the Government or departments in the terms of either investigation. The clarification came as the Government defended its proposals for a predominantly private investigation into the banking crisis in the face of criticism by the Opposition.
Mr Cowen, Mr Lenihan and Green Party leader John Gormley were among a number of senior Coalition members who argued yesterday that two scoping exercises followed by a commission of investigation was preferable to a public inquiry in terms of effectiveness, costs and time.
But the Government continued to face strong criticism that the inquiry was a cover-up for failings in Government policies of “light touch” financial regulation during the period when Mr Cowen was minister for finance. The issue dominated proceedings in the Dáil yesterday. There were robust exchanges during the conclusion of the two-day debate on a Labour Party motion calling for a full public inquiry. The motion was defeated by 83 votes to 78 in the Dáil last night.
Both Labour and Fine Gael asserted yesterday that the Greens had capitulated after its weekend demands for a full public inquiry were rebuffed by Fianna Fáil.
Labour leader Eamon Gilmore portrayed the party as “not even passengers in this Government, but hitchhikers who will be ditched by Fianna Fáil at the first crossroads”. Fine Gael leader Enda Kenny asserted that there was no logical reason to hold the inquiry in private. “The Government attempted to whitewash over the years of Government policy failures,” he said.
“Rather than a transparent and public inquiry into the policy decisions . . . we have a secretive, behind closed doors process designed to delay and frustrate any public scrutiny,” he said.
However, Ministers yesterday rejected calls for a public inquiry on the grounds that a tribunal would be too costly and lengthy and that it would be impossible to convene a parliamentary inquiry that would be truly bipartisan and that could establish facts.
Speaking on RTÉ, Mr Lenihan said: “I have seen a big demand for a public inquiry, but let’s be frank about it. If you want me to sign a cheque for €100 million or €150 million for the next 10 years and set up a tribunal of inquiry, that’s what’s going to happen”.
He said he had grave doubts about whether the Dáil can make findings of fact.
Mr Gormley also claimed it would be impossible to constitute a parliamentary investigation that would be bipartisan, saying the Opposition would target Mr Cowen. Mr Cowen and Mr Lenihan also alleged yesterday that the Opposition had “predetermined” the issues.