Committee seeks to compel AIB to attend

The Joint Oireachtas Committee on Finance and the Public Services is to write to the chairman of AIB, Mr Dermot Gleeson, seeking…

The Joint Oireachtas Committee on Finance and the Public Services is to write to the chairman of AIB, Mr Dermot Gleeson, seeking a bank representative to appear before the committee. The committee is also examining whether it can be given powers to compel people to appear before it in future inquiries.

Committee members yesterday expressed anger and dissatisfaction with the responses they had received from AIB group chief executive, Mr Michael Buckley, regarding an appearance before it. They want to question him about a series of revelations regarding overcharging on banking transactions.

Mr Buckley has twice responded to invitations to appear before the committee by saying he would be glad to, but not until the independent inquiry currently being conducted into the bank was completed.

A number of committee members yesterday said they strongly resented Mr Buckley's response. Senator Shane Ross said the bank had told the committee "to go jump in the lake". He saw no reason why the committee could not conduct a public inquiry at the same time as the private, independent inquiry.

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Mr Buckley told the committee in his letter that he felt strongly that it would be better if the bank answered questions from the committee after the facts in relation to the controversies had been established.

A number of committee members said the response showed that the committee had "no teeth". It was agreed that legal advice would be taken on seeking powers of compellability for the committee. While the process might not be finished before the AIB investigation was complete, it would place the committee in a better position for the future, said Senator Joe O'Toole.

Mr Richard Bruton TD said he felt the committee should be very careful about conducting an inquiry into the AIB controversies. "We are not a court of law," he said.

Ms Joan Burton said she was very concerned about a letter sent to the committee by Ms Dorothea Dowling, chairwoman of the Motor Insurance Advisory Board.

In her letter Ms Dowling said that if AIB appeared before the committee, questions might be asked about the rates of commission banks were receiving on certain insurance products. "It is also important to ascertain whether a higher rate of commission is earned from 'new' policies as distinct from annual renewals of either existing or increased sums insured... You may recall that this led to a churning scandal some years ago with life insurance and related products."

The committee agreed to seek further comments from Ms Dowling and to forward her letter to AIB, the Irish Financial Services Regulatory Authority, and the Irish Bankers Federation.

The committee voted against examining the issue of decentralisation in a vote supported by the Government members of the committee.

Colm Keena

Colm Keena

Colm Keena is an Irish Times journalist. He was previously legal-affairs correspondent and public-affairs correspondent