Labour Party leader Eamon Gilmore said today it was the “correct decision” to vote against the Government’s plan to guarantee all deposits in Irish banks.
Speaking after the Dáil approved the Bill giving effect to the move, Mr Gilmore said the Government had failed to quantify the extent of the exposure of the Irish taxpayer and to outline how much the banks would be asked to contribute to the package.
Speaking today during a constituency visit to Cork South West, Mr Gilmore said: “My party did not lightly take the decision to vote against a measure like this, but I am convinced that it was the correct decision.
Mr Gilmore said he posed a number of questions to the Department of Finance:
- What is the full extent of the exposure of the Irish taxpayer?
- 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?
- 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?
“We did not get satisfactory answers to those questions on Tuesday. We did not get them during the Dáil debate,” Mr Gilmore added. “And we still have not got them, even with the legislation now passed.”
The Labour leader said the party was not opposed to the action being taken to rescue the banking system.
“Now that the guarantee has been given, I hope it works. However, the Labour Party has a number of fundamental concerns about the manner in which this guarantee is being put in place.
“The Labour Party stood alone in the Dáil last night in opposing this Bill. Not because we oppose the principle of action being taken, but because we refuse to sign a blank cheque. Somebody had to stand up for the interests of the taxpayer.”
He added: “The Taoiseach and the Minister say, don’t worry, it won’t cost anything – the banks will pay. But he cannot tell us how much they will pay or even when they will pay. We still don’t know .”
