Today’s BOI announcement will make the taxpayer money unlike opposition proposals - Collins

Limerick TD Niall Collins has said that Government’s announcement today regarding the Bank of Ireland will make the taxpayer money, unlike Opposition plans which would have cost the state money.

“Today’s announcement means that the state will hold 36.5% in a well capitalised, cleaned up Bank of Ireland. The bank is now in a position to provide credit and support jobs and economic recovery. Private investment in the bank is a real vote of confidence in the bank and the wider Irish economy."

Deputy Collins continued “This solution would never have been possible if the Fine Gael proposal of good bank /bad bank had been implemented. They proposed the Government do nothing until the end of the guarantee next September. Their plans would have seen the bank treated as insolvent even though it is viable. This would have ensured no private investment, no return for the taxpayer and no return to lending. If Fine Gael had their way they would have taken funds from a viable bank that can lend into the economy and turned it into a questionable proposal."

“The Labour Party plan is equally flawed, but for different reasons. Their plan would have seen all the banks nationalised. This would have made the taxpayer liable for all of Bank of Ireland’s capital and funding requirements, as is the case with Anglo Irish Bank. The Government’s proposal today will yield an immediate cash return of €550 million and medium and long term returns for the taxpayer. This would have been impossible under the Labour Party’s plan.

“Today’s announcement sees Bank of Ireland meet their capital requirements through a combination of state investment and private sector investment. Private sector support is evidence that our banking strategy is working. It will ensure the bank is properly capitalised and in a position to lend to jobs and businesses. Likewise the taxpayer will see a healthy return for their investment. None of this would have been possible if a either the Fine Gael or a Labour Party approach had been adopted," Deputy Collins concluded.