The Deputy Leader of the Labour Party and Spokesperson on Finance, Deputy Joan Burton, has supported the call made by the economist, Colm McCarthy, for a DIRT style Oireachtas inquiry into the circumstances that led to the current banking crisis.

“The decisions made in regard to banking, and particular in respect of the financing of property deals, has left the county facing what is probably the most serious economic crisis in the history of the state. Taxpayers face a potentially enormous bill for having to rescue the banks and developers and they are entitled to know who made, and what were the consequences of, key decisions made in regard to banking.

“The model for such an inquiry is already there in the DIRT investigation which was carried out by a sub-committee of the Public Accounts Committee.
The DIRT inquiry established the facts in a timely and cost efficient manner and also in an open and transparent way. In advance of the DIRT inquiry, the Comptroller and Auditor General carried out a preliminary inquiry which greatly facilitated the work of the TDs and it might be necessary for him to carry out a preliminary ‘scoping’ inquiry in this area.

“Any inquiry would clearly have to look at decisions made by the boards and senior executives of the banks, but should also examine the adequacy of the performance of the Financial Regulator. The role of successive Ministers for Finance and senior civil servants in the Department of Finance should also be looked at.

“The terms of reference of any such inquiry would have to be carefully framed so as not to interfere with the investigations being carried out by the Office of the Director of Corporate Enforcement or to jeopardise any potential prosecutions.

“There is also, of course, also a danger that attempts would be made to block or hamper any inquiry through court challenges. However, I believe that the banks, having received such generous support from the taxpayer, would find it very difficult to justify failing to cooperate fully with a inquiry established by the Oireachtas.”