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"Tax payers have been left carrying the can for a decade of corporate greed" - says Gilmore

Posted on September 30, 2008 at 05:27 PM

Many questions need to be answered in relation to the Banks Guarantee Scheme announced early today, one thing that is clear is that the latitude being offered to the banks by the taxpayer, must now in turn be extended to mortgage holders, small businesses and other customers of the banks.

In the Dáil today the Labour Leader Eamon Gilmore TD pressed the Taoiseach to explain to the house the extraordinary action taken by the Government this morning.

"Tax payers have been left carrying the can for a decade of corporate greed," Eamon told the Dáil. "I want to hear the nuts and bolts of this deal, what are the conditions, what are the banks being asked to return and what is in it for the public and the taxpayer?

Eamon highlighted a number of questions which he said must be answered concerning the terms and conditions associated with the deal

  • What will the banks pay for this cover?
  • Will the Government be recompensed by any bank that has to avail of it?
  • Will the system of super-high salaries and bonuses continue in the banks, even though the State is covering their risks?
  • How will the Government control and regulate new risks being taken on by the bank after today, since it has given a guarantee for two years?
  • How will the banks continue to pay out dividends to shareholders?
  • What will the impact be on the cost of borrowing by the Irish Government, with further knock-on consequences for the Irish taxpayer?

The full transcript from the Dáil exchange will be available on the Oireachtas website later which you can view here. You can also read statements from Eamon, Deputy Joan Burton, our Finance Spokesperson and Senator Alan Kelly, our Seanad Spokesperson on Finance in our media centre.

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