The Taoiseach says there is a need for the state to invest in the banks to reassure the taxpayer and the international financial markets.
In a radio interview on the Marian Finucane Show, Taoiseach Brian Cowen spoke about the recapitalisation of Ireland's banks. The recent turmoil in the global financial markets and downturn in the Irish economy has undermined the Irish banking industry, with some banks in danger of becoming insolvent.
On RTÉ Radio this morning, Taoiseach Brian Cowen said that the economy’s financial needs will continue to be met via the government’s recapitalisation plan.
During an interview on The Marian Finucane Show, he told listeners that within this plan is a strategy to ensure the government gets its money back,
Investments that are being made here are seeking to take account of taxpayers’ interests as well as the need to ensure that markets internationally see that our banks are being supported for the purpose of being able to the job that they need to do.
The opposition are sceptical however. Fine Gael’s Richard Bruton asks if this move will make credit available for small businesses, which can not readily, access it at present,
There’s no point in putting all this money in, just to see the banks nurse along dodgy property loans.
Eamon Gilmore pf the Labour Party wants to see changes in the upper echelons of banking management,
There has to be a cleanout of the Irish banking system.
Given the current environment of recently collapsed pay talks, public sector pay deferrals and an imposed pension levy, Irish Congress of Trade Unions (ICTU) representative John Carr says public service workers will not be happy at this news,
Public servants are being giving 2.35 billion to this government at this particular time, at a time when the government is giving millions to the banks. And people will be aghast.
The recapitalisation plan will also include the introduction of a statutory banking code, which the Taoiseach says will help to prevent or delay home repossessions.
An RTÉ News report broadcast on 7 February 2009. The reporter is Conor Mark Kavanagh.