Banks must explain role in Greenstar receivership – O’Brien

Published on: 23 August 2012


Fianna Fáil Seanad Spokesperson on Finance Darragh O’Brien has expressed concern that unreasonable demands from the lenders to Greenstar have threatened the company’s future and the security of 800 jobs.

 

The waste collection company has gone into receivership after AIB, Bank of Ireland, Ulster Bank and 4 foreign banks demanded full and immediate repayment of loans.

 

Senator O’Brien commented, “This is a concrete example of the extent of credit crisis as outlined in the latest Central Bank report on lending.  It is proof that the lack of flexibility and entrepreneurship from our banks is putting jobs at risk and threatening economic growth.

 

“Greenstar management were in the process of seeking investors before the banks pulled the rug from under them.  Instead of supporting Greenstar in seeking investment, the banks have ensured that the jobs of 800 people are under threat and a company which could have a strong future is at risk of closure.

 

“As the owner of AIB and shareholder in Bank of Ireland, the Government has a duty to find out exactly what happened here.  Once again it is clear that there has been absolutely no joined up thinking. Local authorities, dominated in most cases by Government parties, are privatising waste services. Meanwhile the Government controls AIB and a large share of Bank of Ireland, which in turn is pulling its support for a major private waste collector. 

 

“What needs to happen before the Government starts getting tough with the banks? The lack of political leadership in tackling the credit crisis is glaringly obvious. It is time we heard from the Finance Minister about his plans to address this so that no more jobs are put in jeopardy.”

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