Labour’s banking plans offer no new solutions - Collins

Limerick TD Niall Collins has said that Labour’s solution to the banking crisis published today (25 March) 18 months after the crisis began provides no new solutions.

Deputy Collins continued, “Labour's plans on the banking crisis are similar to those proposed by Fine Gael which would also be funded from the National Pensions Reserve Fund. Labour’s plans would require their new Strategic Investment bank to raise capital on the bond markets. This is what our banks covered by the state guarantee are already doing. Their plans would see yet another institution in the same crowded market looking for money.”

“I accept that credit for small businesses is still an issue. However NAMA will remove the uncertainty surrounding our banks balance sheets and allow the banks to attract sufficient funding again. The fact is, without NAMA, there will be no credit. And having set up NAMA to cleanse the banks, the Government is determined to ensure through the guidelines provided for in the NAMA legislation and through the Credit Review System that the banks will begin to perform their proper role in this economy: supporting viable and sustainable businesses and households”.

“Much of what Labour’s new bank would do is actually happening already. We are already investing 5% GNP in infrastructure this year and are committed to investing more than €39billion between 2011 and 2016 in infrastructure. This will not only create employment, but lower construction and tendering prices means the taxpayer will get greater value for money”, said Deputy Collins.

“The Labour proposal proposes investing in green energy, micro-finance and next generation broadband. Again this is already happening through the National Insulation Programme, The Smart Meter programme and the rollout of the National Broadband Scheme. We are also providing tax incentives to encourage companies to buy the most energy-efficient equipment. The Green energy sector is estimated to be worth €70 billion in Ireland alone and 800 billion worldwide. We are committed to ensuring the we benefit from this vibrant sector which we believe has the capacity to employ 80,000 people over the next few years”, concluded Deputy Collins