Cowen rejects claim over Honohan involvement in inquiry

THE TAOISEACH rejected a claim by Labour finance spokeswoman Joan Burton that the involvement of the governor of the Central Bank in the inquiry into the banking crisis might be illegal.

Ms Burton said that the Central Bank Act 2003 “expressly forbids the governor, currently Prof Patrick Honohan, from publicly discussing or disclosing any commercially confidential information in respect of any regulated firm or entity’’.

Ms Burton asked if the Government had taken legal advice on whether fresh legislation was required. When Brian Cowen replied that Prof Honohan had agreed to do the job that he had been asked to do, Ms Burton said that he could not agree to something that was illegal.

“He has no intention of doing anything illegal,’’ Mr Cowen replied.

“He will do his job. The deputy is very good at conspiracy theories, and this one is as good as it gets.’’

Pressed further by Ms Burton, Mr Cowen said that the Central Bank Bill would come before the House this year. A range of reforms of financial regulatory structures had been agreed.

“In regard to the specific job the governor has been asked to do – a scoping exercise, as outlined by the Minister for Finance — he can and will do his job and has agreed to do it,’’ he added.

Labour’s Pat Rabbitte asked if Mr Cowen was persuaded that it was in the best interests of the Central Bank that the new chief executive was responsible for investigating his own staff and possible failures that might have occurred in the past.

Mr Cowen said Prof Honohan had not indicated any problem in respect of doing the scoping exercise he was asked to do.

“I am not aware of a problem and have no indication from the governor that it is the case,’’ he added.