EDITORIAL : THE INDENDENT, IRELAND

          

 

Firm stand needed in banking inquiry

EVEN the name 'Director of Corporate Enforcement' bristles with menace. One envisions an Arnold Schwarzenegger-type figure brandishing automatic weaponry on each arm, striking terror into the hearts of any potential miscreant financiers.

So when the current holder of the office, Paul Appleby, tells us more than 10 witnesses are not co-operating with his investigations into the disastrous business affairs of Anglo Irish Bank, the first reaction is one of shock. The second anger.

Mr Appleby has now indicated that he will require an extension to his investigation -- a July 28 deadline had already been set by the High Court.

Nonetheless, Mr Appleby still expects his investigation to be completed by the end of the year.

The headache he faces is that people are not co-operating. These, we are told, include bank executives. Given the gravity of these matters, it seems preposterous that some of those who are non-compliant are important to the investigation. One can appreciate his frustration.

Yesterday, in a separate submission, Mr Appleby took the opportunity to point out that while there is legislation in place to deal with those who do not manage banks responsibly, the maximum fine is a derisory €1,297. Again, considering the tens of billions that the banking crisis has already cost, this seems risible. When one considers the maximum fine for littering is €3,000, one must wonder at our priorities.

It would appear that Mr Appleby has been given a task but not the necessary legal tools. If people do not co-operate he cannot compel them to do so.

As recently as last month, a High Court judge expressed his displeasure that progress in the inquiry -- and the investigation by the gardai -- into these affairs was "not at all satisfactory".

It is not difficult to see why progress is so slow given the obstacles. It seems remarkable that, despite all this, his office has sent a number of files relating to its investigation to the Director of Public Prosecutions.

White-collar crime has done inestimable damage to this country's reputation. It is vital that we give a firm signal internationally that we are doing all in our power to crack down on financial impropriety. As things stand -- and given the tardiness and delays at getting to the truth to date -- the messages are, at best, mixed.

 

Ministers must think before they speak

THESE have not been a good few days for the Government. Just as the Taoiseach managed to remove Transport Minister Leo Varadkar's foot from his mouth over the bailout furore, along comes Environment Minister Phil Hogan, adding new levels of confusion concerning water meters and household charges.

It fell to Enda Kenny to promise last night that we would have clarity on the household charge by the end of the month.

There are going to be tensions within any Coalition trying to navigate during a financial hurricane. However, it is crucial that the Cabinet stays on message and displays a show of unity, especially when the IMF and EU are watching our every move.

It is impossible to give a display of 'group-think' without some attempt at 'group-speak'. It is difficult to explain the sudden attack of jitters in the Government. The single most important ingredient in managing our way out of the crisis is leadership and authority, any drift on either could have serious consequences.

Few at this point doubt that it will be necessary at some point to return to revisit the bailout. However, given market sensitivities and the general state of nervousness internationally, it is critical that ministers stay on the same page. This is just as important when dealing with domestic issues. Household budgets have never been tighter, and the corresponding stress this places on families struggling to make ends meet must be understood.

So if new charges, stealth taxes, or any new expense is to be added to their burden, it behoves the Cabinet to thoroughly think things through before ventilating them in public.