Financial Crisis

Speaking in the Seanad under the Order of Business today, I welcomed the Minister for Finance’s Credit Institutions (Financial Support) Bill 2008 as a necessary deal to give assurances to Irish financial institutions.

“The point has been made that the banking sector in Ireland is vital to the economy and the standing of the financial services industry in the international financial system.  The Government’s action is welcome and it was a very necessary measure. 

“It was acting in extremis and it has safeguarded the banking system in Ireland. There are issues of responsibility and oversight but the Government has acted.

“However, the Government acts only when its back is to the wall, when it has no option but to act.  The Minister for Finance acted after Joe Duffy’s “Liveline” programme in raising the deposit guarantee for depositors in banks.  It was absolutely necessary that he act, despite the fact that our spokesperson on finance, Deputy Richard Bruton, had suggested that more than a year ago. He acted last night.  It is not a question of leadership, it is a question of no choice. This action was necessary and it is the banks who designed this policy, put it to the Minister and he had no option but to act.

“I do not think it is a question of leadership”.