Bank Winddown  But Not The Debt – Crowe

Dublin South West TD, Seán Crowe, has said that the Government’s  decision to winddown the Irish Bank Resolution Corporation (IBRC), the entity made up of the former Anglo Irish Bank and Irish Nationwide Building Society is to be welcomed but the burden of placing the banking debt on the Irish taxpayers  and future generations is wrong.

Crowe added  “that any ‘windfall’ arising from the restructuring of the promissory note will now have to be used to pay down the state debt rather than be invested in jobs or any relief from planned austerity.”

Deputy Seán Crowe said:

“I welcome the fact that the IBRC will be wound down and liquated, but the Government, through this legislation, has now  saddled  Irish taxpayers,children and possibly their grandchildren  with a huge debt.

“I believe like others that this private debt was never created by Irish taxpayers and the state should have never taken on the responsability for this private  gamblers debt.

“This Government following in the  well worn footsteps of Fianna Fáil and  have basically traded the €28bn promissory note debt for a sovereign liability, which could cost the state up to €60bn.

The government’s “much-hyped deal on the Anglo Irish promissory note doubles the cost to the taxpayer of now bailing out Anglo Irish Bank.

“When you cut through all the spin and hype, the so called deal on the Anglo Irish promissory note is another burden on the backs  of irish taxpayers and future generations.

“Rather than seek a write down in the debt the government has kicked the debt can further down the road.

“This debt will now not only be paid by this generation of citizens but by their children and their children’s children, for at least the next 40 years.

“While it may provide the state with some short term deficit relief it significantly increases the cost of bailing out Anglo Irish Bank.

“Across the country understandably following hype ordinary people are asking themselves has the debt been reduced and will it mean less tax hikes and spending cuts next year and the years after that.

“The answer to the first question is an unequivocal ‘no’.

“The answer to the second question is not yet clear and will be determined following discussions with the Troika.

“When my party  Sinn Féin met the Troika  they made it clear that any ‘windfall’ arising from the restructuring of the promissory note will have to  be used to pay down the debt rather than be invested in jobs or relief from planned austerity.

“This week the government had a historic opportunity to secure a real reduction in the cost of the toxic banking debt a legacy of the Fianna Fáil /Green Government.

“Not only have Governemnt wasted that opportunity, they have increased the cost of that burden for generations to come.”