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Morgan says Nationalisation is inevitable

2 March, 2010

Sinn Féin Finance Spokesperson Arthur Morgan, has responded angrily to the announcement from AIB today that it raising its mortgage interest rates is inevitable. Morgan said the taxpayer was sick of being forced to help banking businesses that are clearly incapable of running themselves and then being doubly punished by those businesses excessive charges.

Deputy Morgan will raise the issue, along with NAMA and the banking commission, at an Oireachtas Committee today to be attended by Central Bank head Patrick Honahan.

Speaking today Deputy Morgan said:

“This much is clear – neither AIB nor Bank of Ireland can run themselves as businesses. They are both loss-making, in need of financial help and insurance from the taxpayer, yet they continue to pay their CEOs half a million euro each year. Any business that cannot make a profit, that is dependent on taxpayer’s subsidies should put its wage bill on the table. Instead, these two businesses are raising their charges on the very customers that are bailing them out. They are attempting to be both socially dependent entities and privatised profit-making entities.

“If AIB increases its mortgage interest rates, it sets a dangerous precedent for other banks and the reaction from the public will be outrage. There is no NAMA for homeowners and it is they will be forced from their homes if interest rates go up. I accept that banks are borrowing more on the wholesale market than their interest rates are returning – but what cost saving measures have they themselves considering? And I’m referring to those at the top.

“Ultimately, this just proves the point that both these banks need to be nationalised. It is not true that nationalised banks will struggle to fund themselves – but it is true that the taxpayer will have a lot more faith in a nationalised banks at this stage, particularly when they see what their money is being used for now.” ENDS

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