MINISTER FOR Finance Brian Lenihan has written to departments with responsibility for tribunals to inform them that the Government will provide no funding to pay lawyers or other staff after public hearings have come to an end. This does not apply to judges chairing tribunals.
In his letter, sent last Friday, Mr Lenihan writes: "In view of the major expenditure constraints now facing the Government, it is essential that tribunals and inquiries conclude their business as early as possible and that legal costs are managed in the interests of the taxpayer."
He requests that the chair of the relevant tribunal be informed of the Government's position.
"I suggest that this needs to be done before the summer break."
He continues: "I want to point that, in particular, the chair needs to be informed that the Government has decided that 'no further monies would be authorised for legal teams and staffs associated with the public hearings, beyond the completion of the public hearings'."
The Minister adds: "This means, in effect, that the tribunal will be expected to complete the report themselves in the light of the facts and legal arguments or advice presented during the public hearings."
He concludes the letter by pointing out that, in line with the Government's stance: "I intend to allocate funds in the 2009 Estimates only for third-party costs, the printing costs of the completed reports, and for the minimum amount required for any procedures to determine third party cost."
The letter is understood to have been sent to the departments of the Taoiseach, Environment, Justice and Health. The Mahon and Moriarty tribunals are the main ones to be affected.
Speaking to The Irish Timesyesterday, Mr Lenihan explained why fuller details of the Government's decision were not revealed at the announcement of an expenditure review by the Taoiseach and himself last week.
"We were anxious to impress upon the public mind that the important issue was the shortfall in tax receipts which had to be addressed through the expenditure review," he said.
In relation to "the lawyers and the staff associated with the public hearings", the Government had decided that, "when the public hearings are over, their services are no longer required".
He added: "The judges write the report, that's been the traditional practice and again the anticipation is that, and indeed in fairness all of the tribunals have confirmed to the Government that they intend to complete their work this year."
The Minister continued: "The judges will have to decide on costs. We are examining how the costs bill can be reduced as much as possible but of course the tribunals can make orders as to costs."
He added: "We are making limited provision for the tribunals in next year's estimates to ensure that any reports that are drawn up can be published and any associated applications for costs can be seen to.
"In relation to the costs, we are anxious to ensure that interest should not accrue on costs."
Speaking on RTÉ's The Week in Politicslast night, Minister for Defence Willie O'Dea said: "We're going to introduce legislation in the autumn when the Dáil resumes to restrict the amount of interest that can arise on costs, third-party costs. The exact format of that legislation is being worked out."
Legal sources said yesterday that lawyers have never been paid interest on fees due for work representing tribunal witnesses, even when payment has come years after the work was done.
