The Labour Party has proposed the establishment of a State investment bank, with party leader Eamon Gilmore saying the economy was “gridlocked” and the private banking system was no longer working, writes .
Mr Gilmore said the bank would be capitalised initially with €2 billion from the National Pension Reserve Fund and have the capacity to borrow up to €20 billion.
“We feel such an initiative is necessary to get the real economy moving again.
“We don’t believe we can wish jobs into existence. All of the talk about smart economy . . . it won’t happen of its own accord. It will require active intervention by the State and by Government through the mechanism of a State investment bank.”
Mr Gilmore said the State- established bank would have a Government-appointed board but would function independently as a “commercial State enterprise”.
The party’s finance spokeswoman Joan Burton said the Government appeared only to be concerned with “looking after Anglo”.
Fine Gael has welcomed the Labour Party’s banking proposal, with the party’s finance spokesman and deputy leader Richard Bruton saying it was “entirely consistent” with his plan for a national recovery bank.
