Opposition, bank staff left in dark about IBRC plan

on 07/02/2013 00:00:00

Members of the Oireachtas were told only to be available for a late debate relating to the bust bank. Others were learning of developments through social media.

Government chief whip Paul Kehoe blamed the emergency liquidation of the bank on media leaks that had emerged throughout the day.

Some governments TDs openly stated how they were also unhappy with the choice of liquidators.

Pearse Doherty, Sinn Féin's finance spokesman, warned that rushing thr-ough banking legislation risked repeating the mistakes of the past.

President Michael D Higgins was called home from presidential business in Italy for any unforeseen circumstances surrounding the legislation needed regarding the bank.

Gardaí were stationed outside the bank's former headquarters last night as talks continued on its liquidation.

Earlier in the Dáil, Opposition TDs debated a motion to reject paying a €3.1bn promissory note due at the end of March.

Independent TD Catherine Murphy said Oireachtas members were learning of events through Twitter rather than through government or Oireachtas officials. She said members had learnt on the internet that the board of the State-owned IBRC was stood down.

By late last night, the Dáil was due to sit for two hours and 10 minutes from about 11pm to pass emergency legislation - the IBRC Resolution Act 2013.

IBRC chairman Alan Dukes also said the functions of the board of the bank were being taken over by auditors KPMG.

Pádraic Monaghan of KPMG has been given responsibility for running IBRC's board. Staff at IBRC were informed of KPMG's appointment by email.

Staff representatives said they were concerned about developments.

Banking union IBOA said an urgent meeting was being sought with Finance Minister Michael Noonan over fears the near 1,000 IBRC workers would be "collateral damage" in any deal.

Fianna Fáil's Michael McGrath said he wanted to know whether the deal would benefit taxpayers, and what it meant for repayments for the debts owed for rescuing the bank.

"Will this deal influence taxation and spending decisions? Will people feel it in their pocket?" he asked on RTÉ.

Opposition TDs agreed that the success of the deal would depend on the reduction of the burden of the debt on the taxpayer.

Department sources said discussions with the ECB would continue today.