Draconian laws, but that's reality
Published 16/12/2010 | 05:00
WE have waited a long time for legislation to deal with failing banks, but we've certainly got some now. Labour deputy leader Joan Burton was entitled to a bit of hyperbole when she described it as reminiscent of North Korea. Draconian it certainly is.
The delay and the severity of the legislation are connected. The Government has been behind the banking crisis since the beginning. While it was possible, just, to understand the difficulty of keeping pace with bank losses, the delay in producing what is known as "bank resolution" legislation was inexplicable.
Everyone recognises that one lesson of the crash is that there must be a recognised way to deal with failing banks. Others have produced such legislation, including Britain, but the Government here seemed paralysed by the scale of the task.