“There are serious question marks over the capacity of the Governor of the Central Bank, Patrick Honohan, to fulfil the role planned for him by the government in regard to the proposed inquiry into the banking crisis.

“According to the government amendment to the Labour Party motion calling for a full independent and open inquiry into the banking crisis, the government is to ‘request the Governor of the Central Bank to report to him on the performance of the respective functions of the Central Bank and Financial Regulator in the period since the establishment of the Financial Regulator up to September 2008 having regard to the statutory powers, roles and responsibilities of the Central Bank and Financial Regulator’.

“However, because he is being asked to make a non-statutory report, without any legal protection or powers, the Governor of the Central Bank will be bound by section 33AK of the Central Bank Acts, passed in 2003.

“This section prohibits the Governor, the Bank and IFSRA from publicly discussing or disclosing in any manner any commercially confidential information in relation to any regulated firm or individual.

“If Mr. Honohan is prohibited by law from publicly discussing or disclosing any commercially confidential information in regard to any firm or individual it is difficult to see how any inquiry undertaken by him can contribute to public knowledge on the events that led to the banking crisis.

“It seems that if Mr. Honohan is to have any meaningful role in the proposed process, then the Central Bank Act of 2003 will have to be amended. This is just another example of legal pitfalls and the capacity for delay in the convoluted process the government has come with in other to avoid, at all costs, the public, open, Oireachtas driven inquiry that Labour has been seeking.