David Stanton (Cork East, Fine Gael) | Oireachtas source

I move:

“That Dáil Éireann approves the draft Order entitled Commission of Investigation (Irish Bank Resolution Corporation) (Amendment) Order 2016, which was duly laid before the House on 14 July 2016”.

I wish to reiterate that the Government shares the strong determination of this House for an effective, efficient and timely investigation into the issues of significant public concern which have been raised about the IBRC.

This shared determination has underpinned the extensive consultations that the Government has had with the Opposition at all stages of the process. Before I go into detail of the draft order before the House today for approval, I would like to briefly recap on the circumstances that have led to the need for it.

The Commission of Investigation into Irish Bank Resolution Corporation was established by the Government on 16 June 2015, following approval of a draft order by both Houses of the Oireachtas. The commission’s terms of reference were developed by the Minister for Finance. However, following consultation with the Opposition, the Department of Finance was encompassed within the terms of reference. At that point, it was agreed that the Taoiseach would be the specified Minister under the Commissions of Investigation Act 2004.

Mr. Justice Cregan, sole member of the commission, submitted an interim report on 13 November 2015, which was subsequently published. The interim report raised a number of significant difficulties which had arisen in the course of the commission’s work, including in relation to its terms of reference.

The Taoiseach engaged in detailed consultations with the Opposition on the issues raised in the interim report, as well as further consultation with the commission itself. This process considered various options for proceeding, as well as certain risks and implications of each approach. Following those consultations, it was agreed to draft urgent legislation to address certain matters raised by the commission. Deputies will be aware that the Commission of Investigation (Irish Bank Resolution Corporation) Bill 2016, which provides for additional powers to be given to the commission, has completed its passage through this House.

It was also agreed in the course of consultations with the Opposition that changes would be made to the commission’s terms of reference. As the original terms of reference were included as a schedule in the order establishing the commission, an amendment order is required to change them. The draft order before the House today provides for the original terms of reference to be revoked and replaced by the revised terms of reference. Mr. Justice Cregan has been consulted extensively on these changes and has consented to them as required under section 6 (1) of the Commissions of Investigation Act 2004. In summary, it is now proposed to adopt a modular approach in which the commission would initially be asked to report on the Siteserv transaction, which has been extensively raised in the Oireachtas as a matter of significant public concern.

This would include the issue of share dealing as set out in paragraph 2(e) of the current draft terms of reference. In relation to interest rates, the commission will be asked to report on principles and policies within IBRC in respect of the setting of interest rates generally. In addition, at the request of the commission in its interim report and, in subsequent consultations, a number of essentially technical changes are being made to the terms of reference. Following consultation with the commission, a timeframe for reporting at end-2017 is envisaged, at a tentative cost of over €10 million. This represents a considerable commitment of taxpayers’ money but the consensus view in discussion with the Opposition was that it was necessary to ensure the investigation proceeds.

I believe that the changes to the commission’s terms of reference, taken together with the new legislation before the Seanad, provides a basis for an effective investigation. I commend the draft order to the House.

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