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Dublin: 17 °C Tuesday 21 May, 2013

TDs to vote on extending bank guarantee for another year

The Government is seeking to extend the controversial measure – which it voted against extending while in Opposition.

Michael Noonan
Michael Noonan
Image: Sasko Lazarov/Photocall Ireland

THE DÁIL WILL vote today on extending for another year the controversial bank guarantee agreed in September 2008.

The guarantee is currently due to expire at the end of this year, thanks to an extension agreed in November 2010 – which Fine Gael and Labour deputies opposed at the time.

However, Minister for Finance Michael Noonan confirmed last month that the Government would seek to extend it until December 2012. He said the Government had consulted the European Central Bank on the guarantee, which covers deposits and some senior bonds at participating lenders.

The extension requires approval from the European Commission, which has currently approved the scheme only until June 2012.

When the Fianna Fáil/Green government sought to extend the guarantee in November 2010, Labour’s Pat Rabbitte strongly criticised the move.

It emerged earlier this month tat banks covered by the guarantee had spent almost €7million on legal fees relating to repossessing the homes of boreowers.

Read: Noonan confirms plans to extend bank guarantee>

More: Anglo tops chart for bank spending on home repossessions>

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Comments (48 Comments)

  • Fine Gael / Fianna Fail / Labour : all cut from the same cloth. Theres not an inch of backbone between them. Why is’nt there a credible political alternative to their ilk for the people of this country? Surely with the collapse of the PDs there is scope for a new party dedicated to ireland as a sovereign republic.

    Reply
    • Well Sinn Fein is more or less what you’re looking for there.
      Unfortunately, they just will not drop their petty crusade to rip Northern Ireland out of the UK.

      Oh, plus the murder and terrorism and bombing and whatnot.

      I’d love to vote for them, but it’s just not going to happen with them in their current form.

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    • Do you mean something like the PDs – if so – have you not being paying attention these last 20 years or so?

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    • Is that the same Sinn Féin Daniel that voted FOR the bank guarantee day one back in September 2008?

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    • Who admits to voting YES FOR LISBON YES FOR JOBS now? Ireland’s sovereignty and Independence is gone now, get used to it. The Irish constitution is worthless, nobody took it away from you…Irish people voted for it

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    • How exactly did the Lisbon treaty affect our sovereignty or independence? I think you’ll find that it was the deal made with the EU/IMF (which the public did not have a say in) that eroded our independence. If anything, lisbon, had it lived up to it’s purpose of speeding up decision make within the larger EU, should have enabled our glorious leaders to actually do something about the crisis rather then reacting (badly) everytime things get worse. The anti Lisbon crowd never mentioned giving up our sovereignty, they said it would lead to a European army, which already existed, and the right to abortion, which I support.

      Reply
    • It also said that it would prevent the bigger countries calling the shots……oh dear!

      Reply
  • I can’t believe how naive I was when I voted for Fine Gael. Next time an election comes around, they can stick their vote where the sun don’t shine. All that’s happened here is a swapping of jerseys. And because of the whip system, (which I don’t agree with), a vote is a complete waste of time, since the government has such a large majority. Prepare to be shafted for another year folks.

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    • It was well known that Fine Gael and Labour would have to pursue the same policies – I think the votes for FG and Labour were understandable wishful thinking on the part of a lot of people. Maybe a golden rule – never trust a politician in the run up to an election!

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    • I have to agree with you Spud, but the problem is who do we vote for? I swore I’d never vote for FF again, and I won’t so that leaves these gobshites, SF (sorry, I just cant do that), the PD’s (don’t make me laugh), the Greens (haaaaa haa haa, hoooo. Sorry) whats left is independents or smaller parties. So, who DO we vote for?

      Reply
    • Enda and his 5 Point Plan still have a 66% approval rating with the Irish… lol Only in Ireland, then again only in Ireland would a nation willingly sign away their Independence and Sovereignty because um, politicians told them it would get them jobs lol

      Reply
    • I’d say a lot of people voted labour expecting them to lead a strong, largely left opposition rather then joining forces with a party whose ideals are the opposite of theirs!

      Reply
  • Simon 01/12/11 #

    In a classic Volte-Face, I assume Michael Martin and FF will be opposing this!

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  • While I understand, and support, the changing of opinions when parties/people get into power (not everything is known in advance of getting in the hot seat), the number of u-turns and FF like decisions by the ‘Vote for real change’ govt. we now have has been jaw dropping

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  • Yet another blatant u-turn by benda & his fanatical followers, we saw yesterday how in Britain the people said enough is enough, maybe it’s time for us to do same?
    Why should we continue to bail out the banks that bought this country to it’s knees, the ECB & Frau Merkel don’t care has they have the upper hand.
    FG/FF & Labour don’t care, in fact does anyone in the dail care?
    Answer NO!!!
    Big fat cat wages, they are too far distanced from the ordinary person to care!

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  • So if the banks go oh sorry we’re out of cash again the govt will bail them out again… FFS we have no money to keep old folks homes open or help out people with crippling mortgage debt and are going to be hiked with increased VAT and a host of new taxes but they are proposing to use tax payers money to pump into the banks if they mess up again. Enough is enough this govt is spineless reneging on one election promise after another. End the guarantees now the banks are a disgrace. The govt is a joke and Michael Noonan is completely brainless as Finance Minister. If they do this and the banks need the money it will have to come from the tax payer and we all know what that will mean!

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  • Bruce 01/12/11 #

    Why are people surprised? Smart and all as ye think we are ye fell for classic pre election promises. Wake up! The real decision makers are the senior civil servants who are running rings around the govt. The spin and manipulation of information makes Sir Humphrey look like an amateur. Big decisions are needed. 1. Nobody in civil service gets a pension over 75k per annum. 2. All tax payers earning over 100k pay a rate of 50%. 3. Leave vat rates as they are. 4. Reduce public sector size by 20%. 5. Abolish all 40 plus city and county councils and replace with 5 regional authorities. I could write an entire column on the options available.

    Reply
    • How is it that the common sense of the average person is so lacking in our elected representatives? All legal contracts can be renegotiated if the circumstances call for it but the civil servants have so much power and our govt are such cowards out to look after themselves that the obvious will never happen. Totally agree with your suggestions and add to that a wealth tax on personal assets of over a million, decent wages for frontline workers with a pay reduction and then freeze on public sector managerial salaries. The CP agreement needs to be gotten rid of asap. If a company gets into trouble it restructures and reduces payroll and it certainly doesn’t continue to give incremental pay increases regardless of performance. This agreement is holding Ireland to ransom with the sheer volume of debt it causes. As for the councils dead right get rid of them more bureaucratic nonsense that costs the tax payer money.

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    • Agree with in principle with 1, 3 and 4 but have issues with 2 and 5.
      2. Are you suggesting a flat 50% tax on incomes over €100k, meaning take home of €50k for these people. If that’s the case then where’s the incentive to do these jobs, many of which (leaving it vague as I don’t know every case) are quite demanding and require very long hours. Yes €50k net if enough for people to live on however it would stop the best applying for these roles (not necessarily getting them though it seems). I’d have reservations. Taxing the portion over €100,000 at 50% though (which is likely what you are suggesting) is very much a move I would support.

      5. Abolish all town councils and amalgamate some smaller councils yes. 5 regional councils, no. It would inevitably leave huge areas of rural Ireland unrepresented. With proper political reform stopping TD’s doing councillor’s jobs (single seat STV constituencies) as well as a functional Seanad with more power. open to all to vote on using a list system, with half of it up for election at the same time as local elections, it would give a lot more responsibility and use to the councils. A slashing of the number of council officials (as part of your point 4) would further save on the council bills and allow commercial rates to be reduced, promoting local business.

      Reply
    • To clarify the higher rate of tax is on earnings over 100,000 anything under would be taxed at the lower rates. Also a reduction of 1% on both lower tax bands which would obviously benefit low and middle earners. Anyone earning over 100,000 would also benefit from the reduced rate on this but the higher percentage paid would still bring in more revenue while giving lower earners more disposable income which would in turn help the economy giving a boost to jobs etc.

      Reply
  • Madness, just madness.

    I get the logic that the guarantee will be seen as an endorsement of the Euro and all that, but what happens if the Euro does actually go under? Is it worth potentially signing away the nation’s future, just to send a signal to “the markets”?

    I just can’t believe this.

    Reply
  • No more guarantees it is totally unethical to prop up institutions that are draining the people of this country of its wealth and dignity. Dissolve the banks that cannot pay their way and let healthy banks do business in this country.
    100% dept forgiveness and do not allow dept transfer to the new banks a fresh start for everyone.
    Burn the bond holders and get the root of the problem, these people took a risk and it went wrong they should pay for it. We need to peel back the onion, the situation is really very simple to deal with, its just the power brokers use fear and complex bullshit to scare people into agreeing to what ever terms they dictate!
    Start with who owns the Banks?

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  • Tired of all the talk, how do we get a government that actually represents the people of Ireland?

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  • Voting for what you voted against previously. And they say the public are cynical???

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  • Noonan said “” the Government had consulted the European Central Bank on the guarantee “” . Not likely to have been a two-way consultation. The ECB are running the show here and the only ‘consulting’ they’ve done with Noonan and his cohorts is to tell them to toe the line.

    Reply
  • made 01/12/11 #

    The one way to take a stand is to not pay the new taxes them being the household charge and septic tank charge and any other tax that has to be physically handed over, what can they do if the majority of people turn around and say we can’t afford it we don’t have any money left to give?

    Reply
  • Wars happening to the Irish people at the moment is no different than pre 1916 governed by foreigners(hand puppets for a government) landlords( bankers) putting us out on our ear left right and centre
    Been whipped for every penny.
    Our sovereignty lost
    It’s almost like we have gone full circle

    Reply
  • The only real alternative is Sinn Fein …….. Look what the axis of FF / FG / LABOUR have done I for one want real change next time round ……. And S. F. couldn’t be any worse than that bunch of lying two faced thieves !!!

    Reply
  • we need Pearse Doherty to take control and not under a Sinn Fein banner, let him bring the most suitable candidates to the fore in the next general election, he will walk in if he brings a brand new mandate and a new vision to the table

    Reply
  • I am willing to set up the DTT Party,
    Demanding The Truth Party, the forthright party. Visit demandingthetruth.com for more info.

    Reply
    • Unfortunately the truth is stranger than fiction and the sheeple wont believe it or can’t handle it. Your party will quite quickly become the conspiracy theory party.. You can’t just tell people the truth. They have to want it first and be open-minded enough to understand it. Lets try an experiment thumbs down anybody who think the events in EU are a long planed financial coup by the banking elite to take control of Europe or thumbs up if it just incompetence and greed..

      Reply
  • Petty crusade Daniel ! I’m glad they won’t ! Sinn Fein have a sovereign Ireland at the very heart of their agenda and long may they do so.

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    • It’s not their crusade for a united Ireland that’s a worry. I think most people would support that, the differences would surround how and when. The real worry is Sinn Fein’s ultra hard left policies. If they had their way we would be a cross between Cuba and North Korea.

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    • @ peter. I do agree that their policies can be loony however I wouldnt mind seeing then as a minority as their more stupid policies could be muted by the bigger party while still giving a leftist edge to the whole affair.

      However I do get the feeling none of them have actually any hope of being good managers. It’s just their outlook is hard-left. So it might add balance in small amount.

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    • A ‘Sovereign’ Ireland? lol I guess that’s why they are so pro EU :D

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    • Pat… Theyre not? Also this ultra hard left nonsense simply isnt true- you have the ULA calling them Centre-right and FG calling them ultra hard left while theyre left wing, not hard left not ultra left just… Left. Since when is capping PUBLIC sectors pay at a generous 100,000 euro ultra hard left… I call it common sense

      Reply

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