Finance

While Decision to Conduct Dept of Finance Review Welcome Public Accounts Committee to Continue with its own Inquires


23rd June 2010

The decision by the Minister for Finance to carry out a root and branch review of the role of the Department of Finance in managing the financial crisis is to be welcomed, provided that any inquiry examines all aspects of the Department’s activities, the chairman of the Dail Public Accounts Committee has said today.

The Committee’s ongoing scrutiny of the financial crisis and the Department’s role in it should not be derailed the Chairman has also said.

The Committee has previously highlighted the role of the Department of Finance in the country’s financial emergency. In its recent annual report, the Committee outlined the failings of the Department when dealing with the fiscal challenges describing it as “not fit for purpose.”

Committee Chairman, Bernard Allen TD said;
“The plan to conduct a thorough evaluation of how the Department of Finance has performed throughout the economic upheaval is a very positive development providing that it has comprehensive terms of reference. This Committee, through public hearings and analysis of the Department’s work has long drawn attention to the shortcomings in the operation of this most important Department.

We have already pointed out that the Department needs more people with the relevant educational and professional background to properly enable it to deal with the challenges and difficulties it faces.

However, while this review is welcome, the work already underway by this Committee in this area must not be interrupted. We have previously requested from the Department all relevant documentation relating to the decision taken on the night of the 29 th September 2008 to guarantee the banks. However, despite a repeated request for this information it has still not been forthcoming.

In order for this Committee to be able to carry out its statutory duties we need full co-operation from all government departments and state bodies and we are calling on the Department of Finance to make this information available to us without delay.

We feel that the detailed work already conducted by the PAC would be useful for any inquiry and the Committee would be prepared to contribute towards its work. As a model, we are examining the investigation into the banking collapse in Iceland and we have discovered that a “no hold barred” approach was taken to the inquiry in that country.

I feel such an approach is required in the Irish situation, we need a systematic appraisal examining on what basis the Department gave its advice and who made the big calls.”