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No division on Anglo options - Ahern

Dan Boyle - Government 'flexibility' on Anglo
Dan Boyle - Government 'flexibility' on Anglo

The Minister for Justice and Law Reform, Dermot Ahern, has said Fianna Fáil and the Greens are not at odds on Government policy on the future of Anglo Irish Bank.

Mr Ahern told RTE radio all parties shared the same goal - to find the cheapest and most effective way to restore the banking system.

Earlier, the Green Party's finance spokesman, Dan Boyle, said his party was leaning towards the position that the most cost effective way of dealing with Anglo Irish Bank was a quicker wind-down of the bank.

Speaking on Morning Ireland, Senator Boyle said he believed the the Government's policy had been one of flexibility, and that the Minister for Finance had articulated this in the past.

The Fine Gael finance spokesman Michael Noonan said he disagreed with the manner in which the Green Party was dealing with the issue.

He said the Greens should have discussed the issue in private with their Fianna Fáil colleagues and announced an agreed plan.

'By doing it they way they're doing it, they're adding a political instability to the financial instability and if it's not concluded quickly they'll make matters worse rather than better,' he told Morning Ireland.

Labour's finance spokesperson Joan Burton said it was now essential that the Minister for Finance clarified what the Government's proposals for the bank were. 'With the Greens now supporting a quicker wind-down of Anglo, the Fianna Fáil position of keeping the bank afloat regardless of the cost, is now a minority view within the Dáil,' she said.

'Government's aim to minimise cost'

A spokesperson for the Department of Finance said the department and other relevant authorities were in talks with the European Commission on the future of Anglo.

The spokesperson said the options for resolving the Anglo issue included the management's good bank/bad bank proposal and the potential for an orderly wind-down of the bank, adding that the Government's overriding objective was to minimise the cost to the State.

'If the orderly wind down of Anglo is selected as the most cost effective option, then obviously the time period for this wind down would be whatever time period minimised this cost,' the spokesperson said.

The European Commission is expected to make a decision on Anglo Irish Bank's plan to split into a 'good' and 'bad' bank in September.