Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I would like to thank all of the participants for their contributions during the course of this debate. The debate reflects the constructive consultation that we engaged in, and I am confident that the majority of the concerns around the terms of reference of the commission of investigation are already addressed in the revised terms of reference.

Throughout the evening yesterday, and again today, there has been a lot of discussion about details of specific customers, specific transactions and decisions taken by IBRC. The public concerns about these matters are why we are initiating this commission of investigation. I would like to encourage Deputies who have information that may be a cause for public concern to bring this to the attention of the judge and I commend Deputy Doherty on committing to do exactly that.

I have listened carefully to Deputies' concerns and would like to address some of those relating to the terms of reference in these closing remarks. The issue of an interim report or an earlier deadline was raised by Deputies from Fianna Fáil and Sinn Féin as well several other Deputies. However, I maintain the view that the 31 December 2015 deadline is appropriate, bearing in mind the different nature of the review and its extended scope.

Turning to Sinn Féin and Deputy Creighton's proposal to extend the scope of the transaction by reducing the monetary threshold to €1 million, let me restate that under the terms of reference, the commission will have the power to investigate any transaction of any value that gives rise or is likely to give rise to potential public concerns, regardless of the level of loss.

The movement between the particular and the general in terms of governancewithin the bank and the role of the Department and Minister for Finance has been raised by Deputy Martin and a number of other Deputies. While it is essential that the focus of the investigations remain on individual transactions, it is from a review of the individual transactionsthat trends and potential concerns may be identified. Section 4 of the terms of reference provides the judge the power to go further with the investigation in the public interest "on any other matters of concern arising from its investigation", and report and make recommendations on these matters.

Deputy McGrath and other Deputies' concerns focus on the role of the Department and the political oversightby both my predecessor, the late Brian Lenihan, and me as the respective Ministers for Finance. I want to assure the Deputy and indeed other Deputies who raised similar concerns last evening and today, that under paragraph 2(f) of the terms of reference the judge will be in a position to exercise judgement as to whether the Department took appropriatesteps with the information provided.

Regarding Deputy Martin's concerns about the wealth management unit,I can assure him that the specific inclusion of the wealth management unit in the terms of reference as a result of our consultation on Monday enables investigation into both general and specific concerns around transactions and decisions made by the unit.

Similarly, the terms of reference have explicitly included the performance of agents of IBRC on the matters under investigation, in order to enable the investigation of concerns raised regarding the role played by IBRC's advisers. Agents are included; the consultants mentioned are agents who may be inquired into by the judge, as may their role.

The concerns raised by Deputy Doherty are covered in the current terms of reference; the commission shall investigate alltransactions, activities and management decisions during the relevant periodwhich are identified by it as giving rise or likely to give rise to potential public concern.

The issues of managerial decisions and verbal agreements between IBRC and borrowerswere raised by both Deputy Doherty and Deputy Murphy during the debate last night. The terms of reference cover all transactions, activities and managerial decisions during the relevant period that are identified by the commission as giving rise or likely to give rise to potential public concerns would like to clarify that the relevant period was broadened following consultation with Deputies Murphy, McDonald and Martin to include any situation where a contractual obligation, either written or oral, was entered into prior to the liquidation of IBRC but was not executed until after the liquidation. It is not my intention nor the intention of the Government to cut off a potential line of investigation into transactions, activities and managerial decisions of IBRC, that have given rise or are likely to give rise to potential public concerns.

Following consultation this morning with the Attorney General and a review by the Attorney General's office of the statement made by Deputy Doherty last night and the document provided by the Deputy to the Taoiseach's office, I can confirm that the circumstances raised by Deputy Doherty relating to a verbal agreement before the liquidation of the bank is within the scope of the terms of reference.

Questions also have been raised regarding the examination of unusual share trading activity in respect of any transaction under investigation. The judge is explicitly empowered to investigate such activity with the commission of investigation's broad powers - activity which cannot be adequately investigated based on a review of files held by IBRC.

I also welcome Deputy Murphy's support for this commission of investigation and want to address her concerns regarding the motivations of the promissory note transaction. I can assure Deputy Murphy that my statements in introducing the promissory note transaction were and remain accurate. The promissory note transaction was designed to significantly improve the financial position of the State with regard to the heavy burden of the promissory notes on the State's finances. As Minister Humphreys pointed out earlier last evening, the promissory note transaction was an important milestone which has significantly improved the financial position of the State and benefited taxpayers.

I do not agree with Deputy Creighton's contention that the investigation is toothlessas the commission has significant powers, including the right to compel witnesses to attend, to inspect premises and to prevent the destruction of evidence. Criminal sanctions can apply to persons who commit offences pursuant to the Act. These offences include failing to comply with directions without reasonable excuse; failure to preserve documentation; the obstruction of authorised officers of the commission; and the making of false statements to the commission.

The broadening of the scope of the review to cover NAMAwas raised by Deputies Wallace, O'Sullivan and others. It is worth recalling that NAMA is audited by the Comptroller and Auditor General and NAMA's clear and well-stated policy is that properties and loans are openly marketed. Members of the House, particularly members of the public accounts committee, will know that the Comptroller and Auditor General maintains five or six staff permanently in NAMA, who are effectively embedded there. They review all transactions and report to the Comptroller and Auditor General.

Deputy Keaveney made a serious allegation that my comments to the effect that there is no evidence of any wrongdoing will prejudice the commission of inquiry.

I reject that assertion and maintain that while various allegations have been made, nothing has been proven at this stage and it will be up to the commission of investigation to investigate these matters. The other suggested amendments made by different speakers are largely included in the terms following the productive consultation I had with Deputies Micheál Martin, Catherine Murphy and Pearse Doherty.

At this time, I would like to confirm that retired High Court judge, Mr. Justice Daniel O'Keefe, has agreed to serve as chairperson of the commission of investigation. Mr. Justice O'Keefe has a strong commercial background as a chartered accountant and he is also a former chairman of the Irish Takeover Panel. I would like to express my appreciation to Mr. Justice O'Keefe for agreeing to serve in this important role. I would like to repeat what I said in my opening remarks and encourage Deputies who have received information that may be a cause for public concern to bring these concerns to the attention of the judge.

I would again like to thank all of the Deputies who contributed to this debate. I am confident that the majority of the concerns around the terms of reference of the Commission of Investigation have been addressed in the revised terms of reference and I look forward to the results of the investigation being made available.

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