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Labour Party backs Bank Guarantee for second time in six months

16 November, 2011 - by Pearse Doherty TD

Responding to the news that Minister for Finance Michael Noonan has extended the bank guarantee scheme Sinn Féin Finance spokesperson Pearse Doherty has said, “despite all the bluster in opposition the Labour Party has supported the banking guarantee for the second time in six months.”

Deputy Doherty said that by extending the Eligible Liabilities Guarantee “the government is writing another blank cheque to the banks including Anglo Irish Bank and Irish Nationwide.”

Deputy Doherty said:

“This is the second time Fine Gael and Labour have extended the Eligible Liabilities Guarantee since taking office. The last time was on June 2 for six months. This time the extension will last through to December 2012.

“While Fine Gael always supported the banking guarantee the decision of the Labour party to support its extension, not once but twice, must be the most brass necked u-turn to date.

“Despite all the bluster when in opposition Labour are now enthusiastic supporters of this catastrophic Fianna Fáil policy failure.

“When Fianna Fail secured European Commission approval for the extension of the Guarantee in June 2010 the then Labour Finance spokesperson Joan Burton attacked the decision and criticised the Government for having ‘no exit strategy.’

“Yet here we are again, and Emanon Gilmore, Joan Burton and their cabinet colleagues are imposing this reckless guarantee on the taxpayers again. Not only has the government no exit-strategy from this disastrous guarantee, but they are clearly committed to implementing the failed banking policy of the previous government.

“Sinn Féin opposed the legislation that gave legal effect to the blanket guarantee 17 October 2008. We have consistently opposed the Guarantee in all its incarnations since. In opposition we had the support of the Labour party. Unfortunately like so many of their other pre-election commitments they have abandoned their once principled stand on the guarantee.” ENDS

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