TheJournal.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 11 °C Tuesday 21 May, 2013

Hayes: “Substantial contingency planning” by government on IBRC

He also said that Ireland is the most likely country to get back to the markets due to the “extraordinary patience and hard work” of its people over the last five years.

Minister of State for Finance Brian Hayes
Minister of State for Finance Brian Hayes
Image: Mark Stedman/Photocall Ireland

THE GOVERNMENT HAD undertaken “substantial contingency planning” on the IBRC liquidation bill before yesterday, the Minister of State for Finance said today.

Junior Minister Brian Hayes spoke to RTÉ’s Morning Ireland this morning, when he said that the Minister for Finance said last night that he would have preferred to “do this another way” but when the leak emerged yesterday afternoon, it had to act quickly.

As the government is responsible for the IBRC’s assets, which lie somewhere in the region of €12 -14 billion, said Hayes, the bill was:

absolutely prudent and right – if you are going to liquidate you don’t do it with notice to people; you do it with the clear legal guarantees that you can do it so that we can protect the substantial assets that are there within the IBRC.

Contingency planning

Hayes said that there has been substantial contingency planning by the Department of Finance and by the government “for quite some time”. He also said that the late-night meeting “wasn’t analogous to the night of the [banking] guarantee or anything close to that”.

“We have been working on this for a very long time,” he said.

We will wait and see what comes out of Frankfurt today. But as far as we are concerned the prudent, the right thing to do was to safeguard the assets that were there in the IBRC.

According to Hayes, the European Central Bank “have no fundamental disagreement to the action that was taken last night by the Irish Government in so far as we were protecting what was rightfully ours”.

He said the government will continue to negotiate with the ECB and are “confident and optimistic” that they can get the best deal for Ireland.

We are ambitious for a larger deal in terms of breaking the link between the banking and the sovereign debt – that is something that will continue.

With regard to IBRC staff, Hayes said that they have skills in dealing with legacy assets and legacy debt. He believes a number of staff will be offered positions in that context now that the debt will transfer to NAMA.

Hayes said the government is “very confident about the constitutionality and legal robustness of the legislation”.

The Quinn family case will continue, he said, as the government “is determined to follow the money trail”.

According to Hayes, there is goodwill towards Ireland across the EU, and “people know the most likely country to get back to the markets away from the Troika is Ireland, because of the extraordinary patience and hard work of our people over the last five years”.

Read: Noonan: IBRC bill brought through due to “immediate risk” to bank>

Read: TDs vote to liquidate IBRC in dramatic late-night Dáil sitting>

Read: Financial services union calls on Noonan to guarantee IBRC jobs>

Read next:

Comments (45 Comments)

  • I hate making personall comments on ministers but this man really turns my stomach. He always has a certain smugness in his voice and on his face whenever I see him being interviewed.

    Reply
  • A lot of talk about this ‘leak’ which triggered this farce we witnessed last night in the Dail. Anyone in government know who leaked this? If so, will action be taken against them? It smacks of a government approved ‘leak’ so this bill could be shoved through last night.
    Just simply can’t believe or trust anyone in FF/FG/LAB and I have a feeling last night will go down in infamy.

    Reply
  • How nice of Enda to afford the opposition 45 minutes to read and digest the 58 page draft last night.
    If that was ample time for them,then why does he need two weeks to reflect on the magdalen report.

    Reply
    • Because Billy,

      Magdalene was an historic Irish slavery issue covering the periods 1922 to 1991.
      The irish debt issue is a current and future slavery issue that only covers the next 3 years, the life of the current government,.

      Reply
  • There will be no deal from ECB, and you can take that to the bank !!

    Reply
    • What a muppet. Its like him dating ahhh sure lads its grand we will be rewarded in heaven. What a totally muppet. All the imf and ecb want is that those bondholders past and future get paid for making bad investments. Oh and getting the bailout money back of course with that lovely interest on top. Special case/special deal me arse there is not one cent in free aid. But why should there be? Because why is tax payer bailing out failed private enterprise. This country has changed so much in last 4 years. There is no joy anymore

      Reply
    • Like him saying **** not dating…… predictive text

      Reply
  • I sat and watched it unfold last night and likened it to being in a car with no brakes headin straight for a cliff. You know it’s going to happen but cannot do a thing. At least with the car scenario you have the option to jump out but this government won’t let us jump they want to take us all down with them. It’s like watching a Stooges film. Complete idiots.

    Reply
  • The opposition were backed into a corner last night and they were bullied into voting for a bill that they had no time to fully examine and with the threat of what would happen if the bill wasnt passed. And to hear the shouting and heckling when Pierce Doherty was speaking was an embaressment. This government are a disgrace and if FF pulled this stunt Enda would be standing in the Dail shouting his head off. Arseholes

    Reply
    • sean 07/02/13 #

      All of the opposition really should have voted no then ,
      You don,t vote in something you know nothing about ………which tells me the FF td,s knew full well what was.in this deal ……….all that hot air from mehole martin is simply part of the act.

      YET AGAIN WE HAVE BEEN DONE UP LIKE A COUPLE OF KIPPERS, another day of shame in this sham of a country

      Reply
    • Yes ,

      Michael Martin should have led their TD’s from the dail and went to war with the partionists. Ohhh no Silly me that’s allready been done and look where we are now. But the irony would have been lovely

      Reply
  • A line from a cartoon keeps going around in my head:
    “Oh Magoo, you’ve done it again!”

    Reply
  • Someone please point this man away from the camera/microphone… Anything for a sound bite!

    Reply
  • ECB to let us know at 1.30 today what they think of this action by the government and the deal they are prepared to offer.But as it stands a promissory note has now been turned into sovereign debt.Any deal offered even it is bad will be “spun”as fantastic for the country.Well done to all 113 who voted yes i hope we the people don’t find ourselves regretting it.

    Reply
  • What does ‘DEAL’ mean in our governments mind?. Seems a bit like this, when I think of ‘deals’ in the public eye drug deals come to mind and essentially the drug deal our government commenced last night is this: Our government (the stoner) just gave the ‘Dealer’ a specific amount of money for an unspecified amount and quality of dope, the dealer just said he had to go and get the dope, he told the government to ‘wait right there’ the government watch him disappear up a dark alley. The government waits and waits, desperately needs the dope, the dealer finally comes back with a small package and hands it sneakily to the government. The government looks at the grubby little package, it is a tiny, the government tries to unwrap the package, it seems to be mostly tinfoil, a vague smell of mixed herbs, the dealer urges the government to hide it quick because someone might see the deal. The government, shocked, pushes the little package into its pocket, confused and regretting the entire transaction, and the dealer slaps the government on the back then disappears up the dark alley.
    The government returns to its base with the deal, we wait expectantly as it takes the package out of its pocket. Our collective faces drop, our money is gone, we have nothing.

    Reply
  • 07/02/13 #

    “s the government is responsible for the IBRC’s assets, which lie somewhere in the region of €12 -14 billion”, said Hayes

    In the region of €12-€14 BILLION. That’s BILLION. Don’t they even know that figure ? How can anyone have any faith in what’s going on when the Government that’s supposedly on top of this situation doesn’t even have exact figures to hand. We are not talking about a few quid here and there – it’s BILLIONS !!!!!

    Reply
    • Mr No Name
      It’s very simple if one has average intelligence. So let me try to help you understand.
      The assets are largely made up of properties and business that cannot be accurately determined until sold!
      Simple?

      Reply
    • richard/paddy rodgers
      that kinda rules you out so as according to my son you have less than average intelligence
      bit of a belly on you aswell, probably all the cruises and no exercise

      Reply
    • 07/02/13 #

      Richard Rogers – there is no point to your posts.

      You are obviously so blinded and blinkered I would hazard a guess that if FG ordered the annihilation of all people with blue eyes, you would be defending it to the hilt (by the way, judging by this Governments performance, I wouldn’t actually rule that out – they seem to be capable of all sorts of illogical and unjustifiable crap)

      Reply
  • I see the government cheerleaders are out in force, the media falling over themselves to claim its a good deal for the country. Fasicist dictatorship we are living in, media, mega corps and government colluding to enforce their neo-liberalism agendas on us. Everything that is happening is going according to plan,the bond market crash will be the final piece in the jigsaw and the majority in the country either dont care or are lapping it up.

    Reply
  • Interesting to see the ISEQ up a bit on the news so it can’t be all bad. It’s the not knowing that makes everyone panic and assume the worst and maybe we are right but then again maybe this will be a good turning point once all the details have been worked out and revealed. If these developments were all bad it would have been reflected in the markets this morning.

    Reply
  • I sincerely believe the government did what was the right thing last night. Of course, one would prefer the Icelandic solution of default, but even that would have best been done four years ago. It would be economically disastrous to do it now, with the people already weakened by four straight austerity budgets. A default would guarantee another four years of pain. The one chilling phrase in the Junior Minister’s comments is ‘back to the markets’. Please don’t. Actually, let me rephrase that – Just Don’t. With no true international banking reform being negotiated anywhere in the world, the hacks, thugs and predators of Goldman Sachs and their ilk will be all too happy to sell the same poisoned bonds that started this global mess in the first place. Ireland has and can expand upon a strong, local, market economy base and that is where it should focus itself – NOT trying to play with the ‘big boys’. They’ll steal our ball, kick us up the jacksie and send us home crying…again.

    Reply
  • The “economists” who frequent the comments boards on this site have really gone into overdrive today.

    Some colourful and helpful comments this morning included “this move will benefit only a few (ie the rich)”, “the ministers smug face” etc. At the same time everyone is saying they dont understand what happened but are convinced we’re getting screwed.

    People need to relax a bit, wait for conclusions from actual economists and then comment on the physical appearance of ministers.

    Reply
  • Only the butters and the crazies voted ‘no’.

    Reply

Add New Comment