Readers like you keep news free for everyone.

More than 5,000 readers have already pitched in to keep free access to The Journal.

For the price of one cup of coffee each week you can help keep paywalls away.

Support us today
Not now
Dublin: 13°C Tuesday 16 August 2022
Advertisement

Tánaiste: 'There was a bailout of the banks 12 years ago'

There have been calls for the Taoiseach to correct the Dáil record over his statements.

Image: Oireachtas.ie

TÁNAISTE LEO VARADKAR has told the Dáil that the Irish bailout of the banks did happen, stating that the Taoiseach misspoke yesterday.

“There was a bailout of the banks 12 years ago and the Taoiseach misspoke yesterday. He’s said that already this morning,” he said.

Varadkar said the Taoiseach did correct himself in the Dáil, adding that what Martin meant to say was the shareholders were not bailed out. 

Labour’s Brendan Howlin has said the Taoiseach should correct the Dáil record over comments he made yesterday about the bank bailout. 

Micheál Martin told the chamber in the Convention Centre that the government’s recapitalisation of banks during the financial crisis was not a bailout, saying: 

I’ll talk to you about the banks. The banks were not bailed out. Shareholders in the banks were not bailed out; the State took equity. The shareholders were not bailed out. That’s not a popular thing to say, but it’s the facts.

Howlin told RTÉ’s Today with Claire Byrne that the comments were “bizarre” and represented “alternative facts.”  

“You can’t reinvent history,” he said, adding:

“By any plain understanding of English the Irish people bailed out the banks in 2008. The then Minister of Finance, Brian Lenihan, with the agreement of the Government gave an unconditional guarantee to the liabilities of failed banks, without actually knowing at the time the full cost of that.”

The time of the bank bailout was a “painful” chapter in the State’s history, he said.

He called on the Taoiseach to correct the Dáil record. 

Making a difference

A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article.

Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

For the price of one cup of coffee each week you can make sure we can keep reliable, meaningful news open to everyone regardless of their ability to pay.

“Technically those who actually bought shareholdings in the six covered institutions were burned as well, they lost the shareholding and suffered grievously.

“And so, if you like, if you want to look at that technical issue to the owners of the banks, where they are bailed out?

“No. But were the banks themselves, the institutions bailed out with a wall of money? In any objective economic sense, of course that’s exactly what happened,” he said.

Read next:

COMMENTS (98)

This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
write a comment

    Leave a commentcancel