THE TWO Government parties yesterday played down suggestions of divisions over how to deal with Anglo Irish Bank.
It came amid claims from all opposition parties of a U-turn by the Greens after the party signalled it now favours a quicker wind-down of the nationalised bank than either of the two options being considered: a good bank/bad bank split and an orderly wind-down that could take up to a decade.
Minister for Justice Dermot Ahern said Fianna Fáil and the Greens were not at odds about the future of the bank, the failure of which will cost the taxpayer at least €25 billion.
Mr Ahern, speaking on RTÉ, said that both parties – and indeed the opposition parties – were agreed that a solution would have to be found that minimised the cost to the taxpayer.
However, Mr Ahern would not be drawn on whether or not Fianna Fáil supported the Green Party’s new position that the wind-down should be quicker than the 10-year period that is envisaged under an orderly wind-down.
Mr Ahern pointed out that Senator Dan Boyle of the Green Party had said that he wasn’t calling for the immediate wind-down of the bank. Asked should it happen more quickly, he replied: “We have not come down on how soon it should be wound down. We are working in conjunction with the European Commission. It’s not really an issue of how soon. It’s what is the minimum exposure to the Irish taxpayer. If that takes however long, so be it. It is to ensure that taxpayer pays the least.”
Earlier Mr Boyle had said the Greens had arrived at a view that a quicker wind-down was desirable and that was a debate that would be happening in Government.
Fine Gael finance spokesman Michael Noonan said the Green Party’s singular initative on this issue added “political instability to the financial instability. If it’s not concluded quickly they’ll make matters worse rather than better.”
Those sentiments were echoed by Pat Rabbitte of the Labour Party, who said the uncertainty created by the rift had made the situation more difficult.
The party’s finance spokeswoman Joan Burton said Fianna Fáil’s determination to keep the bank afloat was now a minority view within the Dáil, following the Greens’ about-turn on the issue.
“It is now absolutely essential that the Minister [for Finance Brian Lenihan] makes a comprehensive statement on Government plans for Anglo. This cannot await the resumption of the Dáil at the end of next month,” she said.
Fine Gael’s Phil Hogan described the change of Green policy as a “180-degree turn” and said the Government’s approach to Anglo was “the most costly mistake in the history of the State”. Arthur Morgan of Sinn Féin said the Greens had changed its stance on Anglo “very late in the day”.
