The Minister for Finance Michael Noonan, through his actions since taking office, has proven that he was either completely wrong or blatantly hypocritical when he opposed the extensive powers being given to the Minister for Finance to deal with bondholders in the banks under the Credit Institutions (Stabilisation) Act 2010.
Fianna Fáil Spokesperson on Public Expenditure & Financial Sector Reform Michael McGrath TD has said: “The Government is clearly happy to take credit for invoking legislation that they opposed in a very cynical way in opposition. Fine Gael voted against the Credit Institutions (Stabilisation) Act 2010 in the Dáil on December 15th 2011, Michael Noonan describing it at the time as an “extraordinary Bill”.
Michael Noonan stated: “Not only is this Bill draconian in its intent, but it is unnecessarily draconian in the manner in which it empowers the Minister. The relationship the Minister will have with the Central Bank under this Bill is peculiar, to say the least”.
Deputy McGrath said: “This Government has proven itself very capable of taking credit for measures they didn’t introduce and making headline announcements of its own that have very little if anything behind them.”
Deputy McGrath concluded: “The Minister is rightly using these powers to achieve appropriate burden-sharing with holders of bank subordinated debt in AIB and also in Bank of Ireland, EBS Building Society and Irish Life & Permanent where liability management exercises are all underway. However, I think it is now appropriate for Minister Noonan to state clearly that he was wrong in his opposition to this legislation or simply opposed it for blatant political gain at the time.”