Emmet Stagg (Kildare North, Labour)
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Question 6: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the costs incurred by the State, at the latest date for which figures are available, arising from the various inquiries instigated by or on behalf of her Department; the element of these costs that have been recovered from any of the other parties involved; and if she will make a statement on the matter. [13841/04]

Róisín Shortall (Dublin North West, Labour)
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Question 51: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the position in regard to each of the inquiries being carried out by or on behalf of her Department; the projected date for the conclusion of each such investigation; the inquiries in respect of which reports have been referred to the DPP; and if she will make a statement on the matter. [13840/04]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 6 and 51 together.

Sixteen investigations into company law matters have been initiated by me since I first came into office as Minister for Enterprise, Trade and Employment. In three cases, the High Court appointed, on an application by me, inspectors under section 8 of the Companies Act 1990. The Inspectors appointed to Ansbacher (Cayman) Limited presented their report to the High Court on 10 June 2002. The report was subsequently published and has been passed to the Director of Public Prosecutions. Section 8 inquiries into the affairs of National Irish Bank Limited and National Irish Bank Financial Services Limited are continuing. I understand the final report of the inspectors is expected to be presented to the High Court on or before 31 July 2004.

One investigation under section 14 of the Companies Act 1990 was completed in 1998. The report on this has been passed to the DPP. Eleven investigations were initiated by me under section 19 of the Companies Act 1990. Six of these have been concluded. Of the six investigations completed, two of the reports were passed to the DPP. A number of summary prosecutions have since been successfully concluded in one case. One report provided an input into the successful application to the High Court for the appointment of inspectors under section 8 while the fourth report was passed to the relevant High Court inspectors. One report was completed in September 2002 and a further report was completed in March 2003. Both reports have been referred to the Director of Corporate Enforcement.

Three investigations under section 19 are ongoing. The authorised officer has recently indicated to me that he is now unlikely to meet his previous estimate of mid 2004 for completion of his reports of these investigations. I am not in a position at this stage to say when the authorised officer is likely to have completed his work.

Two investigations were held up in legal appeals. These inquiries are now the responsibility of the Director of Corporate Enforcement. One investigation was undertaken under section 59 of the Insurance Act 1989. The report on this has been referred to the DPP.

The costs incurred since 1997 on company investigations initiated by or on behalf of my Department currently amount to approximately €10.3 million. This amount does not include the salary costs of civil service staff working on a number of these investigations or the legal costs which are primarily being borne by the Vote of the Chief State Solicitor. Most of this €10.3 million derives from the costs to date of the High Court inspectors appointed under section 8; €5.3 million in the case of National Irish Bank and €3.5 million in the case of Ansbacher.

The question of recovering costs from the section 8 investigations does not arise until such time as the inspectors complete their investigations. In the case of the Ansbacher inquiry, the High Court proceedings taken by the State to recover the costs of the inquiry were settled out of court for the sum of €1.25 million in favour of the State. Section 19, as originally enacted, did not provide for the recoupment of costs. This has now changed with the enactment of the Company Law Enforcement Act 2001.

Brendan Howlin (Wexford, Labour)
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My party tabled a question similar to this more than two months ago and received an answer that was virtually identical, except for the completion of the investigations under section 19. The three investigations under section 19 which were expected to be completed by mid-2004 are still ongoing.

Does the Tánaiste agree there is a legitimate public expectation that the investigations will come to some conclusions and that there will be accountability on foot of them? Does she agree that there is a lack of confidence in the outcome of these investigations and that the only people being enriched from the process are the lawyers? When will these matters come to a conclusion? Why has nothing happened in the past two months other than the extension of the timeframe for the investigations under section 19? Was the commitment given by the Minister for Finance at the Fianna Fáil Ard-Fheis on 6 March 2004 to bring in specific measures to reduce the costs of these inquiries all guff? Are there specific proposals? Will the Tánaiste propose specific measure that will retain public confidence in the supervision of company policy and law and a mechanism that will hold people to account?

Mary Harney (Dublin Mid West, Progressive Democrats)
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It would be unfair to say that nothing has happened. A new independent office, the Director of Corporate Enforcement, is fully resourced with key professionals from the law and accounting, and members of the Garda Síochána. One of the significant complaints from corporate Ireland is the vigorous manner in which company law is being enforced. In fact some Deputies have spoken to me privately about it because of the change from the previous laissez-faire attitude to an aggressive one. The director has had a significant number of successful prosecutions, but that does not seem to get the attention one would have expected.

In response to the question on the inquiries that Mr. Gerard Ryan is completing in my Department, I had hoped they would be completed. I had a meeting with the officer and the legal adviser recently and I am due to have another meeting shortly. I hope the inquiries will be completed by the end of the summer. Much of the work in which he has been involved involves passing on a great deal of documentation to both the Moriarty and Mahon tribunals. Worthy information has come to light which is more within the remit of those bodies than it is a matter for the officer in charge of company law investigations.

What remains in my watch is what Mr. Gerard Ryan does. From here on, all the other inquiries are the responsibility of the independent Director of Corporate Enforcement. I am happy to say that he is doing an outstanding job in enforcing company law. That was the purpose of the legislation. We did not wait for the outcome of the particular inquiries.

From the information available, I expect that the High Court inspectors in the NIB case will report to the High Court by July of this year. If adverse conclusions about any individual are being drawn, they are required to make those individuals aware of the adverse conclusion, under natural justice, to give them an opportunity to respond. They did that some considerable time ago and are now in a position to finalise the report and present it to the High Court by July.

Brendan Howlin (Wexford, Labour)
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I welcome the establishment of the Office of the Director of Corporate Enforcement and will watch how it develops. What concerns me is bringing the inquiries already in train to a conclusion in a way that ensures there is public confidence that we have not only a legal framework but also a mechanism for enforcement. On the ancillary matter of costs, the subject of comments by the Minister for Finance, is there any progress in Government on that matter or was it simply a kite?

Mary Harney (Dublin Mid West, Progressive Democrats)
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In recent weeks the Cabinet has had a number of discussions on the costs of tribunals but, generally, all inquiries are very expensive where the legal process is involved. It does not come cheap. The views expressed by the Minister for Finance, which I share, is that we must find a better, more effective and speedier way of bringing matters to a conclusion.

Brendan Howlin (Wexford, Labour)
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When will we see it?

Mary Harney (Dublin Mid West, Progressive Democrats)
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I understand he is about to bring a proposal to the Cabinet. Certainly we have discussed the matter on at least three occasions in the past six weeks or so. I understand the Minister for Finance is working with the Attorney General on the matter and that the proposals are imminent.