Minister for Finance Brian Lenihan told the Dáil today that although an immediate wind-down of Anglo Irish Bank was popular with the public, it was not an option.
Speaking during the debate on the Government’s plans for the banks, Mr Lenihan said all parties would like to see Anglo shut down, but defaulting on the bank’s huge debts could not be countenanced as it would lead to wholesale loss of confidence in the Irish financial system.
“It is not on the agenda,” he said.
During an often heating debate, Opposition TDs called on the Government to extend the terms of the banking inquiry.
Fine Gael leader Enda Kenny asked Tánaiste Mary Coughlan if the Government will extend the inquiry beyond the date of the guarantee.
“There was intense activity between Government and Anglo and we need to know the truth of what happened in there," Mr Kenny said. “I understand there is a great deal more to come out that will not be very edifying either - we need that inquiry set up beyond that date.”
Labour leader Eamon Gilmore asked the Tánaiste if the Government was "going to a proposal to amend the terms of reference of that inquiry to allow for the Government’s own decisions to be subject to that inquiry.”
The Tánaiste responded by saying everyone is “appalled” by what has happened at Anglo but that all of the company directors’ loans at the bank will be “pursued vigorously”.
She said she had “full confidence” in the Garda investigation into the bank. “There has been considerable progress, it has been most focussed and vigorous, and we await the outcome of that Garda investigation," he said.
Fine Gael's Richard Bruton said while he welcomed talk of SME lending plans for AIB and Bank of Ireland, “let's not forget that 70 per cent of the recapitalisation money what is supposed to be the silver bullet to get bank lending going, is going into Anglo Irish for which there is no SME lending plan because they are not going to lend a red cent other than to those they are already supporting and to whom they’ve lent recklessly.”
Labour’s Pat Rabbitte said the rescue package for the banks amounted to more than three times the annual tax revenue amount for the country.
“Of this amount ordinary people cannot understand why the Government would want to commit almost €40 billion to the casino royal on St Stephen’s Green," he said. "The Government is not only constraining its own capacity to govern this country in anything approaching a fair way but is constraining the capacity of future government’s to do so.”
Sinn Féin's Caoimhghín Ó Caoláin criticised the Bank of Ireland for increasing premia on home insurance. "It's not a bit of wonder that the Minister can say their future is rosy and profitable” after the increase. "The only way people can deal with it is to withdraw their custom”.
