Brian Lenihan Jnr (Dublin West, Fianna Fail)

The Government has decided to establish a framework for a comprehensive investigation into the causes of the systemic failures in the Irish banking sector which culminated in the need for the State intervention in the sector. The framework for investigation will have two stages. The first stage will consist of the preparation of two separate preliminary reports from the Governor of the Central Bank and from Mr. Klaus Regling, a recognised international expert.

The second stage of the investigation will be the establishment of a statutory commission of investigation, which will be chaired by a recognised expert of high standing and reputation. The terms of reference of the commission will be informed by the conclusions of the two preliminary reports. It is envisaged its remit will be to examine and report on the causes of the systemic failures in the Irish banking sector which culminated in the need for the State guarantee, the recapitalisation programme, the nationalisation and rescue capitalisation of Anglo Irish Bank and the establishment of the National Asset Management Agency in order to preserve financial stability.

The terms of reference will not be set until we have the benefit of the preliminary reports from the Governor of the Central Bank and Mr. Regling and the views of the Oireachtas on them. In examining these issues, the commission of investigation will have the powers available to it under the relevant legislation, which the Deputy is aware are substantial. The report of the commission of investigation, when completed, will be laid before the Oireachtas for further consideration and action by an appropriate Oireachtas committee.

I am satisfied the mechanism for inquiry contained in the Commissions of Investigation Act 2004 provides a robust framework which has already been tested with regard to investigation of matters of significant public concern. This framework will allow the causes of the systemic failures in the Irish banking sector to be identified and fully investigated by the proposed commission of investigation.

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