Labour today called for the publication of the Bacon report on proposals to deal with the toxic debts of Irish banks.
Economist Dr Peter Bacon has advised the Government to set up a bad debt company to take problem loans off the banks’ balance sheets to free up lending.
He was hired by the Government in February to work on a plan to remove bad bank loans, and he has submitted a report on his plan to Minister for Finance Brian Lenihan.
Joan Burton, Labour spokeswoman on finance, today called for the report to be published immediately to due its role in the Minister's strategy for dealing with the banking sector.
"There have been very selective leaks about proposals made by Dr Peter Bacon on a management plan to deal with the so -called toxic debts of the Irish banks. It appears the Minister for Finance is using this document as the basis of future banking policy and he may outline some of this tomorrow in the Budget speech," Ms Burton said.
"I am asking today for this document to be published in full immediately. The decisions to be made are just as important as the budgetary decisions, and they deserve full public debate before the Government makes its final decision.
"There are many specific options available to the Minister on how to create an asset management agency and each of these deserve adequate debate and attention. The potential cost to the State is enormous," she said.
"If the Minister is serious about cross party engagement in policy making in this area he would commission Dr Bacon to meet with all the Dáil parties or to brief the Dáil Finance Committee before any decision is made," she said.
"This is arguably one of the most important decisions ever made by an Irish Government. Done badly, the scheme could burden future taxpayers with billions more in cost than may be necessary to cure the toxic assets problem. Done properly with general public consent, it could pave the way for a viable and reformed banking industry."
The Labour frontbencher said the plan required assessment in the Dáil and among academic economists and other commentators before a decision is made. "There is nothing to be gained by secrecy and speculation."
