Only a public banking inquiry will satisfy taxpayers

It now seems certain that all, or at least the major part, of an inquiry into the collapse of the Irish banking system will be held in public. It is only right and proper that it should be so. A behind closed doors investigation will not satisfy the taxpayers of Ireland, who effectively find themselves lumbered with massive debts as guarantors of the Government's deposit guarantee scheme. The precise nature of the inquiry was being set out by the Government as we closed for press on Tuesday afternoon, so its structure and length was not clear at the time of writing. However, what is clear is that the probe needs to be open and transparent and time-defined. It also must not only hold bankers to account for their actions but must also make a serious attempt to restore confidence in the beleagured system. The case for a banking inquiry is both overwhelming and compelling. It is crucial to learn from the mistakes of the past in order to avoid making them in the future. However, tribunals of inquiry in this country have a habit of costing an awful lot of money and taking an inordinate amount of time, though they have at least shone a light on some of the more nefarious activities in areas from the beef industry to planning corruption. So a judicial inquiry is the least favoured option, given the bitter experiences of tribunals since the late 1990s. The people of Ireland have every right to know the whos, whats and whys of how the banks were brought to their knees, as well as how light-touch regulation was permitted and whether or not political interference was a factor in allowing the banking sector to get away what what it clearly did. The inquiry also needs to happen now to send a clear message to the financial markets that this country is serious about putting its house in order. The later the delay in collecting evidence, the less likely we are to find out the truth. The international financial community which lends us money has reacted positively to measures taken to date in the budget and on Nama, and it now needs to know we are fully prepared to repair our damaged reputation in the eyes of the world. One of the sensible options would be the establishment of a parliamentary inquiry, such as the Dail Committee set up in the wake of the Lisbon Treaty defeat. A template that could be used is that of Iceland, which has suffered a far worse fate with its banks than we in Ireland have. The Reykjavik government wasted little time in setting up a probe and its report is due in a couple of weeks' time. If the Icelandic administration can get a report of this magnitude out in such a relatively short time, then surely it is possible here. As Fine Gael's Richard Bruton has said, the Dail must assert its duty to hold public policy and its execution up to scrutiny, and this must be done in public. Our citizens have a right to see those held responsible for this economic and financial catastrophe held to account in public. Many individuals have seen their livelihoods destroyed and been saddled with debts that will take a generation to pay off as a result of what has happened in Ireland. Those who landed us in this mess in the banks need to explain their roles fully, and in public, so that the court of public opinion, at the very least, has a chance to pass judgement. It is worth considering, too, the Labour Party view that legislation be changed so that such a parliamentary inquiry cannot be challenged in the courts. The powerful individuals involved, many of them fairly precious about their reputations, would not be slow to go to the courts if they thought their constitutional rights were somehow being infringed by having to answer probing and searching questions, adding to frustrations and delays with the process. A short, sharp and focused inquiry into the banks is what is needed, and it needs to begin without undue delay.