Statement by the Minister for Finance on Banking Reports

The Minister for Finance, Mr. Brian Lenihan T.D., said:

“The Government has now agreed that the Oireachtas consider these reports. In this context, I understand that Joint Oireachtas Committee on Finance and the Public Service intends to invite the authors of both reports to appear before it and elaborate on their findings.”

The Minister emphasised that these reports are preliminary, scoping reports, which are intended to point the way to more detailed examination by a Commission of Investigation. The Minister has prepared terms of reference for consideration by the Oireachtas and has also published these today.

Following consideration by the Oireachtas of the draft terms of reference, the Minister will prepare a draft Government Order to establish a statutory Commission of Investigation. The draft Order will be put to both Houses of the Oireachtas for a vote in the period ahead.

The report of the Commission of Investigation will, when completed, be laid before the Oireachtas for further consideration. It will then be open to an Oireachtas Committee to hold further hearings on the report.

The Governor of the Central Bank was asked by the Minister for Finance to prepare a report on the performance of the respective functions of the Central Bank and Financial Regulator over the period from the establishment of the Financial Regulator to the end of September 2008.

The report by Messrs Regling and Watson identifies factors specifically pertaining to the Irish banking system which exacerbated the impact of the international financial crisis for Ireland. The authors were also asked to highlight the areas in relation to the conduct, management and corporate governance of individual institutions that may require further investigation by a Commission of Investigation.

The requirements pertaining to the establishment of a Commission of Investigation are set out in the Commission of Investigation Act 2004. The key requirements are:

The sponsoring Minister to seek Government approval for a draft Order to establish the Commission of Investigation. The draft Order will set out the terms of reference for the work of the Commission. These terms of reference should, to the extent possible, specify precisely the events, activities, circumstances, systems, practices or procedures to be investigated.

The sponsoring Minister to provide an accompanying statement containing an th Juneestimate of the costs to be incurred by the Commission and a time frame for the submission of the Commission’s final report to the specified Minister.

A draft of the proposed order and a statement of the reasons for establishing the Commission to be laid before the both Houses of the Oireachtas and a vote of both Houses on a resolution to approve the draft Order.

Following the approval of both Houses of the Oireachtas, the Order to be signed by the Taoiseach.

The sponsoring Minister to publish the final terms of reference and accompanying costs statement in Iris Oifigiúil and in any newspapers or other appropriate publications.