State's two main banks ‘cannot be trusted’, Fine Gael parliamentary party is told

THE State’s two pillar banks “cannot be trusted” and the banking and investment system has “utter contempt” for the Government, the Fine Gael parliamentary party has been told.

A number of TDs and senators heavily criticised the country’s banking and investment system in the wake of the Davy stockbrokers scandal, Bank of Ireland branch closures and the withdrawal of Ulster Bank in recent weeks.

Finance Minister Paschal Donohoe acknowledged it had been a “very difficult few weeks” for Irish banking but said the decision to close bank branches was not something he could influence.

He said the prospect of a new bank entering Ireland was “very, very low”.

Mr Donohoe said the Davy scandal was “inexcusable” and the stockbroker had engaged in “terrible” behaviour, but that the NTMA had made a “really big decision” to cease working with it.

He said the Central Bank had the power to levy more sanctions if they decided to do so, but said he could not comment any further.

Tánaiste Leo Varadkar said he would have preferred if the Central Bank had forewarned the Government of its announcement of a record €4.1m fine for Davy.

Former housing minister Eoghan Murphy said the withdrawal of Ulster Bank only strengthens the two pillar banks, AIB and Bank of Ireland, and said he did not trust them or their culture. He said the recent announcement of the closure of 88 Bank of Ireland branches underlined the risk of being reliant on it.

Senator Jerry Buttimer said he did not trust the pillar banks given how people had been treated during the pandemic.

Mr Murphy said that credit unions should play a greater role, a view echoed by Senator Joe O’Reilly.

Veteran backbencher Bernard Durkan said the banking and investment system have “utter contempt” for Government and public representatives. He said they represented a serious threat to politics that need to be dealt with.

Mr Varadkar suggested that closed bank buildings in certain towns should be used as government offices that could include a post office and a remote hub to access State services.

Ministers Patrick O’Donovan and Josepha Madigan both criticised the EU’s vaccine procurement, while backbench TDs Joe Cary and Alan Dillon queried whether pharma companies based in Ireland could carry out third party manufacturing of generic vaccines.

The parliamentary party held a lengthy discussion on plans to revitalise town centres. Former rural affairs minister Michael Ring said that grants were needed for people to renovate buildings in rural towns. Senator Paddy Burke called for tax measures to incentivise people to move into rural towns.

Veteran TD Fergus O’Dowd criticised Housing Minister Darragh O’Brien over the lack of funding for his hometown of Drogheda in the announcement of urban regeneration and development funds this week.

Mr O'Dowd said it was “entirely unacceptable” that a Fianna Fáil minister had left local government representatives in the dark over the announcement. He warned that nobody in Drogheda would vote for Fine Gael over the lack of funding and that he didn’t know if Louth would have a Fine Gael TD after the next election.

The meeting was also told that Fine Gael will hold an online ard fheis in May. Mr Varadkar noted that this week marked 10 years of Fine Gael in government. He said the party had a lot to be proud of over the last decade.

Online Editors