SENIOR FIANNA Fáil figures have questions to answer about their links with bankers and developers following RTÉ’s Prime Time programme on Monday night, according to Labour Party deputy leader and finance spokeswoman Joan Burton.
She said the programme had once again brought into sharp focus the cosy relationship that existed in the boom years, between Fianna Fáil, the bankers and the developers, which ultimately brought the country to the brink of bankruptcy.
“Irish banking and the Irish economy has been laid low by this golden circle and last night’s disclosures that a number of Fianna Fáil figures had access to loans from Irish Nationwide Building Society on easy terms were particularly disturbing.
“The question now arises as to whether or not other figures in Fianna Fáil, including figures at senior level, were customers of this institution and whether they operated a system of favoured relationships for particular clients,” said Ms Burton.
She said clarity was particularly required on this in the light of the fact that €8 billion of Irish Nationwide loans were to be covered under Nama and that a reported figure of up to €2 billion had been agreed by Minister for Finance Brian Lenihan as part of a rescue package.
“At the same time we as taxpayers are committed to taking on another €20 billion in Anglo Irish Bank bad and doubtful debts under Nama, while we have bailed out that bank to the tune of €4 billion in 2009 and will probably have to put inject an additional €4 to €6 billion in 2010.
“These two institutions were at the core of the international loss of Irish reputation and were at the core of the banking crisis. In many ways the guarantee scheme, which Labour opposed, was structured around these two with their close links to Fianna Fáil and to Government,” said Ms Burton.
Fine Gael’s enterprise spokesman Leo Varadkar said the victims of the banking disaster were the thousands of people mentioned in the Financial Regulator’s report yesterday who were suffering negative equity, facing crippling mortgage arrears or who have had their homes repossessed.
“The year on the calendar has changed but another generation of Fianna Fáil politicians and their friends in banking and building have succeeded in bankrupting the country.
“A 21st century golden circle has corrupted our banking system and destroyed our economy.
“The drivers of this phase of economic destruction were, again, a cheerleading Fianna Fáil Government and greedy speculators and banks,” said Mr Varadkar.
He said Fine Gael would continue to campaign to amend the Nama legislation to include a new homeowner support scheme that would make non-performing mortgages on primary residences facing repossession, a new class of eligible asset for compulsory acquisition at current market value by Nama.
“Families could then apply to enter into a shared home ownership scheme with Nama in order to reduce their monthly payments to affordable levels, and will have the option of buying back the equity stake owned by Nama after a three-year period at future market prices.
“The Government’s recent Budget commitment to review the current repossession moratorium is a completely feeble and inadequate response to the mortgage crisis facing Irish society in 2010, and betrays this Government’s greater concern for the health of banks than for ordinary families,” said Mr Varadkar.