Wednesday, February 9, 2011

Ireland Cannot Afford €100 Billion Bailout- O'Brien

Ireland Cannot Afford €100 Billion Bailout-O'Brien

Speaking in the wake of the suggestion by the Chairman of Anglo-Irish Bank Alan Dukes that a total of €100 billion may be required to ensure a “clean” banking sector, Cllr Jonathan O’Brien has said it underlines the insanity of the government’s banking policy and the need to revoke the bank guarantee and burn the bondholders.

Cllr O’Brien said:

“The government has already poured €46 billion into the banks, with a further €35 committed under the EU/IMF deal. Alan Dukes is now suggesting the total cost of the debacle may reach €100 billion.”

“Ireland cannot afford a €100 billion bailout. Already under the government’s Four Year Plan public services and welfare payments are being cut to the bone. Low-paid workers have been hit hard by the brutal 7% levy. Cutbacks have reduced consumer spending and damaged the economy.”

“If Alan Dukes is correct – and as Chairman of Anglo Irish Bank he ought to know – will the Irish public now be expected to accept even deeper austerity measures to bail out the banks? We cannot and we will not. The cost of the bank bailout is already killing our economy.”

“There is a quicker and more effective way to get a “clean” banking system – revoke the bank guarantee, burn the bondholders, and establish a single, well-capitalised state bank to lend to businesses and consumers. This is the route which an increasing number of economists are advocating. The government’s banking policy has failed. We must get the millstone of bank debt off our necks before we can start the process of economic recovery.”

For further information or comment contact Cllr Jonathan O’Brien @ 085-2133907

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