Labour, FG vote against extending bank guarantee
Published 30/09/2010 | 05:00
FINANCE Minister Brian Lenihan last night warned the State's financial stability would be "seriously jeopardised" if the Government did not renew the bank guarantee.
Yet the Labour Party voted against the extension for the state bank guarantee, contrary to the advice of the Central Bank and the approval of the European Commission.
Taoiseach Brian Cowen accused Labour Party leader Eamon Gilmore of playing a "populist game".
Two years after opposing the original guarantee, Labour again refused to back the bank guarantee.
Labour finance spokesperson Joan Burton said her party was not going to sign another blank cheque for Fianna Fail.
"We are being asked to extend the guarantee today, but we are not being told yet what the cost of the last blank cheque will be -- the Government are insisting on voting this through, but they won't tell the taxpayer the cost of the Anglo bailout.
"It is simply not acceptable that the Dail should be asked to make a decision on the guarantee while the information on Anglo is being withheld from TDs," Ms Burton said.
Fine Gael also voted against the Government motion to extend the guarantee, even though it agreed in principle that the bank guarantee was still needed.
The party wanted the Government to introduce new legislation to allow the Central Bank to wind up failing banks and spread the cost across with all the institutions lenders.