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Government “deal” doubles cost of Anglo Irish Bank bailout

7 February, 2013 - by Pearse Doherty TD

Sinn Féin finance spokesperson, Pearse Doherty TD, has said that the government’s “much-hyped deal on the Anglo Irish promissory note doubles the cost to the taxpayer of bailing out Anglo Irish Bank.”
Deputy Doherty said:
“When you cut through all the spin and hype, today”s so called deal on the Anglo Irish promissory note is bad for the taxpayer.
“The Government have traded the €28bn promissory note debt for a sovereign liability to the state of up to €60bn.
“Rather than seek a write down in the debt the government has kicked the debt can further down the road. In doing so, it has cranked up the long-term costs to the state.
“This debt will now not only be paid by this generation of citizens but by our children and our children’s children, for the next 40 years.
“While it may provide the state with some short term deficit relief it significantly increases the cost of bailing out Anglo Irish Bank.
“Across the country today ordinary people are asking themselves has the debt been reduced and will it mean less tax hikes and spending cuts next year and the years after that.
“The answer to the first question is an unequivocal ‘no’. The answer to the second question is not yet clear and will be determined following discussions with the Troika.
“When Sinn Féin met the Troika last week they made it clear that any ‘windfall’ arising from the restructuring of the promissory note must be used to pay down the debt rather than be invested in jobs or relief from planned austerity.
“This week the government had a historic opportunity to secure a real reduction in the cost of the toxic banking debt foisted on the people by Fianna Fáil. Not only have Fine Gael and Labour wasted that opportunity, they have increased the cost of that burden for decades to come.”

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