FINE GAEL finance spokesman Michael Noonan criticised the pace of the fraud investigation at Anglo Irish Bank. “It is going very slowly,” he said.

Mr Noonan asked Minister for Finance Brian Lenihan if there were legal penalties for people in banking who knowingly supplied false information to the Minister, the department, the regulator’s office and the Central Bank.

“When will we see some action in the pursuit of people who knowingly supplied false information on which major decisions were taken?” Mr Noonan asked. “This is now costing the taxpayer €32 billion.”

Mr Lenihan said one would have to examine the precise circumstances in which information was forwarded, the individuals who forwarded it, the extent to which they intentionally misled or the extent to which they were guilty of wishful thinking.

“The deputy will appreciate that I am not privy to all those facts,” he added. “If there are matters which require criminal investigation, they will be investigated in that context. It is not clear that there are criminal exposures here.”

Mr Noonan said: “The fraud squad has been there for almost two years. What is happening? There are 40 people in jail in America.”

Leas-Cheann Comhairle Brendan Howlin said Mr Lenihan was not accountable to the House for the fraud squad.

Mr Noonan said the Minister was in a Cabinet which included the Minister for Justice and the Attorney General. “On the direction of the Government, the Garda Commissioner sent the fraud squad in there in January two years ago,” he said. “What is happening?”

Mr Lenihan said there was an investigation into matters in Anglo Irish Bank which related to what had occurred in 2008 and, perhaps, in previous years. “These matters are being investigated and the necessary file will undoubtedly be submitted to the Director of Public Prosecutions in due course.” Mr Lenihan, replying to questions at the end of the debate on the bank guarantee, said appropriate burden-sharing by holders of subordinated debt was a principle he agreed with.

“The losses in Anglo Irish Bank and Irish Nationwide Building Society are substantial and those bondholders must accept a very sharp discount in the value of their instruments having regard to the events that have happened, the terms upon which they were issued and the fact that these institutions would not be able to survive in the absence of taxpayer support,” he said. He added that legislation was being prepared.

Earlier, during Opposition leaders’ questions, Labour leader Eamon Gilmore said projections provided by the Government for economic growth were seriously wrong. He asked Taoiseach Brian Cowen to tell the House the growth forecast for next year and the next four years. Mr Gilmore asked what the budgetary adjustments for next year and the next four years would be. He also asked for the projected unemployment figures.

“There are currently approximately 450,000 people on the live register,” said Mr Gilmore. “The total has been more than 400,000 for the past 16 months.”

Mr Cowen said that when the Government’s economic plan was agreed by the Government it would be debated in the House.

“What has happened is that on the 2010 budget forecasts for the subsequent years, the Government took forecasting models from the high growth and low growth scenarios that were set out in the ESRI reports at the time,” said Mr Cowen.