O’Keeffe to voice opposition to assets agency

THE budget will be criticised from within the Fianna Fáil ranks in the Dáil today when rebel backbencher Ned O’Keeffe speaks out against plans to introduce a toxic assets agency.

The Cork East deputy will use the special budget debate to hit out at the Government’s decision to set up the agency to buy up to e90 billion in property and development loans from troubled banks.

Taoiseach Brian Cowen, insisted yesterday that the decision was taken to ensure a functioning banking system in order to “maintain jobs and get back to the functioning economy we all want to see”.

But Mr O’Keeffe believes the Government should have opted for setting up a state bank, similar to the old ICC bank, which would provide funds for businesses in trouble and new enterprises. The euro-candidate for the Ireland south constituency already made his views clear to Finance Minister Brian Lenihan, at a Fianna Fáil parliamentary party meeting just hours after the budget was delivered in the Dáil.

Fianna Fáil backbenchers have so far avoided a revolt similar to the one caused by the medical card controversy after October’s budget.

But they are expecting anger from voters when they return to their constituencies at the weekend.

The majority of the calls they are getting so far relate to the decision to cancel the Christmas welfare bonus which is a double payment of social welfare for the month of December.

But most TDs said it is too early to tell the extent of the anger because they have not yet returned to their constituencies. “The bonus seems to be an issue for a lot of families, it is something that people have been accustomed to over the years and, as we have sorely learnt, it is hard to take something back once you have given it,” one TD said.

A Cork TD said: “The Christmas bonus is different to the medical card issue. Yes it is very hard but it’s better than taking a 10% cut in their welfare payments. With this budget, we are all bleeding.”

Referring to the public’s perception of the Government in light of the budget, one TD said: “They hate every bit of us. Because when you’re taking something out of someone’s pocket they’re not going to like you.”

The Taoiseach had to postpone a trip to China following the October budget because of a revolt among his backbenchers which lead to one of them — Joe Behan — resigning from Fianna Fáil.