Harney And McCreevy Clash Over Central Bank's Ansbacher Failure

by Jason Gorringe, Tax-News.com, London

15 July 2002

A clash between Tanaiste, Mary Harney and Finance Minister, Charlie McCreevy was one of the most notable features of the special one-day Ansbacher debate in the Irish Dail last week, according to reports in the Irish media.

The Deputy Prime Minister rejected Mr McCreevy's attempt to shift the blame for failing to avert the crisis sooner away from the Central Bank, slamming the regulatory body for its 'failure...to fully and effectively oversee and regulate the banking sector'.

Following the release of the 10,000 page report on Ansbacher (Cayman) Bank, which was unregistered in Ireland, but was nevertheless used by many of the country's great and good to evade taxes over a sustained period, it was revealed that one of the Central Bank's own inspectors raised concerns with regard to tax evasion practices taking place during a routine inspection of Ansbacher's Dublin base, Guinness & Mahon, more than 25 years ago.

Commenting on the fact that these suspicions were never followed up by the banking regulator, the Finance Minister admitted on Thursday that 'further questions could have been raised', according to a report in the Irish Independent, but refused to go further than that.

Speaking prior to the Dail's summer recess, Ms Harney explained that the Ansbacher investigation would not have come into being without 'decisions that themselves were enabled by a changed and healthier political culture'. However, she warned deputies not to rest on their laurels, adding that:

'The price of freedom, it is said, is eternal vigilance. It is the price of a fair and democratic society and the price of real economic success.'

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