Ross criticises building society report

SEANAD REPORT:A CONFIDENTIAL report prepared for a major building society displayed dishonesty of the most appalling kind, said Shane Ross(Ind).

Banks, along with building societies, had been bailed out by the Government. "We should realise when we talk about recapitalisation, which will undoubtedly happen very shortly because it will be forced on them, that the banks have been deliberately misleading people about what they need to do."

He had come across a report prepared at enormous cost for the EBS by its public relations people. There were two very dangerous trends running through it. It was advising the building society of the need to get itself bought by someone before it had to tell its members, who were also its owners, what it was up to.

"In other words, get out of this quickly because you will have to produce your financial results by the end of the year, and that will be deeply embarrassing. That is dishonesty of the most appalling nature."

The second trend running through the report was the absolute desire to protect the reputations of the board and the management. It appeared that this was all that mattered, added Mr Ross.

Eugene Regan(FG) said he believed the Government was waiting for another full-blown crisis in the banking sector before it acted or signalled any type of coherent policy. The Minister for Finance had got a lot of kudos for the recently-introduced guarantee scheme. Yet a new Financial Timessurvey now ranked him bottom of all the finance ministers in Europe. "I think that is very bad for this Government and for the economy."

Joe O'Toole(Ind) said he believed there was a sizeable number of people in the country who were in safe and secure employment, but who were not spending. They were not doing so because Fianna Fáil were now doing what it had been accusing the Opposition of indulging in over the last two years - talking down the economy. "People are afraid to spend a shilling. The Government better get its act together and encourage people to spend money if they have it."

Phil Prendergast(Labour) said people with acquired-brain injury were the latest in line to be targeted for savings through health cutbacks. The mileage allowance for home-liaison nurses was to be discontinued. Around 10,000 people would be worried and disadvantaged by this move.