“When the legislation providing for the nationalisation of Anglo Irish Banks comes before the Dail tomorrow, I intend to table a series of amendments to ensure that that there is a comprehensive investigation into the way in which the bank was operated; to remove excessive provisions of secrecy in the Bill; and the provide for openness and accountability in regard to the appointment of the Assessor and members of the Board of the nationalised bank.

“It is totally unsatisfactory that less than 24 hours before the Dail is due to meet, we still do not have a final and complete text of this crucial Bill. While I received a briefing on the Bill from officials of the Department of Finance today, the absence of a final text means that the Bill cannot be subjected to the level of scrutiny required. It also makes it very difficult for the opposition to draft appropriate amendments. The delay in providing a final text does not inspire any confidence that the government is on top of the situation.

“A key amendment I will be tabling will require the Minister for Finance to apply to the High Court for an order under the Companies Act for the appointment of one of more inspector to investigate the affairs of Anglo Irish Bank having regard in particular to questions as to whether:

(i)__ its affairs have been conducted with intent to defraud
its creditors or the creditors of any other person or otherwise for a
fraudulent or unlawful purpose or in an unlawful manner or in a manner which
is unfairly prejudicial to some part of its members, or that any actual or
proposed act or omission of the company (including an act or omission on its
behalf) was so prejudicial; or
(ii)__ persons connected with the management of its affairs
have in connection therewith been guilty of fraud, misfeasance or other
misconduct towards it or towards its members; or
(iii)__ that its members have not been given all the
information relating to its affairs which they might reasonably expect;

“While it remains to be seen whether or not the government will be able to keep Anglo Irish operating as a going concern, there can be no question of drawing a veil over the events that led to this crisis and particularly the way in which directors loans were handled.

“We are particularly concerned about the circumstances of the loans given to the former Chairman, Mr. Sean Fitzpatrick and the relationship between Anglo Irish and the Quinn Group.

“If we are to ensure that in future the interests of taxpayers are not put at risk, we must discover exactly what happened in the past. The public has a right to know what was going on in Anglo Irish, as do shareholders or those whose pensions depended on the bank. The most effective way to establish this is through the appointment of an Inspector. This will be an absolutely crucial amendment for the Labour Party.

“The appointment of the Assessor is one of the key provisions of this Bill. The Assessor will determine the level of compensation, if any, to be paid to shareholders. While there were many large institutional shareholders in Anglo Irish, there were also many people on modest incomes who had invested savings in shares in the bank. Under the draft Bill, the Minister will simply be empowered to appoint the Assessor. I will be tabling an amendment to ensure that when the Minister proposes to appoint the Assessor, the name of the person proposed must be approved by both Houses of the Oireachtas.

“It is also vital that we have a new board that is genuinely independent and commercial and not composed of the usual political appointees. With this in mind, I will also be tabling an amendment that would require persons proposed for appointment to the board to appear before the Oireachtas Committee on Finance and the Public Service.

“While the Labour Party accepts the need for a reasonable degree of commercial confidentiality in regard to the operations of any bank, some of the provisions in this Bill provide for an unacceptable degree of secrecy. I will be seeking to amend these to ensure that there is openness and accountability in regard to the operation of what will now be a state-owned bank.”