O’Donnell and Kenny at odds over Regulation-Darragh O’Brien TD

Darragh O Brien, Fianna Fáil TD for Dublin North has said that Fine Gael party are at odds over regulation. Yesterday (22 June) in the Dáil Finance Committee Fine Gael’s Finance Spokesman Kieran O’Donnell said even stronger regulation of the banking sector than that being proposed by Central Bank Governor Patrick Honahan may now be required. This contradicts what his party leader said just two months ago.

Deputy O’Brien said "The Fine Gael leader and the party’s new finance spokesman Kieran O’Donnell appear to be at odds already over their approach to banking regulation. In April last Deputy Kenny said I do have a concern here that I think the move from having effectively no regulation at all to over-regulation now could bring about a complete standstill to elements of the construction sector in general (Irish Examiner, 15 June 2010) . Yesterday however, Deputy O’Donnell contradicted this approach when he said Patrick Honohan’s comments on increasing the strength of the Central Bank and the regulators are most welcome. However, there are concerns that this may not be enough to reduce the future risks to the Irish taxpayer. Further radical reforms may be needed.

"The central bank’s new strategic approach to banking published this week will see a fundamental and far reaching shift in how banks operate in this country. The follows the recent reports into the banking crisis which cited regulatory failure as a major contributor to the banking crisis. How can Fine Gael be ready for Government when the main opposition party cannot even agree their approach on a subject which is of fundamental importance to our economic future", concluded Deputy O’Brien.