Greens lean to short-term nationalisation of banks

GREEN Party councillors will meet tonight to discuss their approach to NAMA.

If some of the councillors have their way, short-term nationalisation of the banks could become a condition for the party’s support of NAMA when it is voted on in the Dáil. Temporary nationalisation is being pushed by a number of Green Party members who say they will seek concessions to ensure the taxpayer is protected before agreeing to allow their TDs to support the plan.

Following a number of meetings of local organisations in recent days, the party’s three county councillors and a number of town councillors will meet in Dublin tonight to discuss the NAMA legislation and the imminent review of the Programme for Government.

“NAMA looms over everything now,” said Louth county councillor Mark Dearey ahead of today’s meeting.

He said a number of issues in the draft NAMA legislation have “agitated members in a big way”, adding that the depth of feeling should not be underestimated.

The party is to hold a special convention on September 12 to debate NAMA and then reconvene the following month to vote on the issue. That vote will, in turn, decide whether the six Green TDs support or reject the NAMA legislation in the Dáil. Party members say they are looking for an “absolute thorough analysis” of the possible risks of NAMA and the options available to protect taxpayers, including temporary nationalisation of banks.

“I’m coming to the notion that temporary nationalisation will have to go hand in hand with the establishment of a bad bank,” said Cllr Dearey.

Gary Fitzgerald, who was unsuccessful in June’s local elections, said the Government will pay too much for the loans on assets, leaving the taxpayer with a massive bill. “If we have realistic valuation of the loans and nationalise the banks – which is probably inevitable since the banks will need to be recapitalised – then there could at least be some upside for the taxpayer.”

The party’s National Executive Committee confirmed on Friday that five constituency organisations had called for a convention – the number required under party rules for such a meeting to take place.

If two-thirds of the members were to vote against the bad bank plan, Green Party ministers and TDs would be blocked from supporting the legislation, plunging the coalition into crisis.