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Government refuses to debate €19 billion transfer to banks – Doherty

21 July, 2011 - by Pearse Doherty TD


Speaking today in the Dáil Sinn Féin Finance spokesperson Pearse Doherty called for an adjournment of the Dáil to discuss the imminent injection of €19 billion of taxpayer’s money into the banks.

Deputy Doherty said:

“This morning I called for an adjournment debate on the imminent injection of €19 billion of taxpayer’s money into the covered institutions. This money is due to be given to the four covered banks without any Dáil debate or scrutiny.

“It is simply outrageous that the Government refused to allow the debate. That they the did so by hiding behind the procedural judgement of the Ceann Comhairle shows just how embarrassing this refusal is to the Government.

“Given the fact that €10 billion of this injection will be taken from the National Pension Reserve Fund with the remainder being borrowed at very high interest rates it is unacceptable that the transfer of these funds into the four banks will take place when the Dáil is not even sitting.

“This injection of €19 billion will be used primarily to pay senior bondholders, many of whom are not covered by the blanket banking guarantee. At least €4.3 billion will be paid to senior bond holders between now and the end of September, a figure close to the €4 billion public spending cuts and tax increases expected to be contained in December's budget.

“Again these payments will be made without any Dáil scrutiny or debate. Considering that the €19 billion is 39 times greater than the total cost of the so called jobs initiative, which was debated over three days in the Dáil there is a clear need for a debate in this house on the €19 billion injection into the banks.”

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