Congress Demands Nationalisation of the Banks

27 Nov 2008

Congress today (November 27) called on government to nationalise the country's banks and warned that any investment from private equity funds or venture capitalists would cause turmoil in the banking system.

Congress General Secretary David Begg said that "it beggared belief that government could even countenance investment from venture capital and private equity funds - precisely the same sources which have brought about the current international crisis. You only have to look at eircom and our deficient communications' infrastructure to realise the damage these people could do to the banking system."

Mr Begg said that the plan to recapitalise the banking system recently put forward by Irish investment managers was "infinitely preferable to proposed involvement by the short term 'vulture capitalists'. If they are serious we would be happy to meet with them to explore the proposal in greater detail.

Mr Begg was joined at the launch of the Congress proposals on bank nationalisation by leading finance union officials, Mr Jerry Shanahan of Unite and Mr Larry Broderick of the Irish Bank Officials Association (IBOA). The two unions represent over 40,000 workers in the financial sector.

Both warned of catastrophic job losses if private equity funds or venture capitalists were allowed to invest and said this would be resisted with every resource at the unions' disposal.

"Ultimately," said Congress Economic Advisor Paul Sweeney, "we strongly believe that the state needs to be centrally involved in this process. After all, an investment now will almost certainly reap a huge dividend....why shouldn't the Irish taxpayer benefit from that and, in the process, protect thousands of jobs. In terms of securing the economy and protecting livelihoods nationalisation of the banks is the only realistic and sustainable option."

Read the full text of the Congress proposals 'Don't Sell Out the Banks' here.

 

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