Lenihan: Fury at bank crisis ‘reasonable’

FINANCE Minister Brian Lenihan said he understands the public “incomprehension and anger” at the vast sums of money being pumped into the banking sector, particularly Anglo Irish Bank.

Delivering the keynote speech at the annual Michael Collins commemoration ceremony in Béal na mBláth yesterday, Mr Lenihan said fury was “a quite reasonable response to the incredible recklessness and incompetence” that fuelled the banking crisis and that “like others, I hope that anyone who broke the law will face its full rigours”.

Defending Government support of the banks, Mr Lenihan said its decision was based on expert advice that it needed to stand behind the banks to ensure a sustainable financial system is established.

“And, in the case of Anglo, to ensure that the resolution of debts does not damage Ireland’s international credit-worthiness and end up costing us even more than we must now pay,” Mr Lenihan said.

The minister said neither the bond markets nor our EU partners would tolerate any slippage and this meant, inevitably, that the next budgets will continue to have strict control of expenditure.

“What I can promise is that as minister I will try to ensure that the burden is borne by those who can best afford it,” he said.

Speaking to reporters after the ceremony, Mr Lenihan said research had shown that those who were in the most exposed position had suffered the least in the recession.

He said he and the Governor of the Central Bank, Professor Patrick Honohan, agreed matters concerning the banks needed to be resolved quickly and that whatever solution was found “must keep the cost to the taxpayer to an absolute minimum” and must also secure the approval of European authorities.

Mr Lenihan said his department was in discussions with European officials to bring matters to a speedy conclusion.

He also said he did not believe his health was impairing his capacity to do his job. The minister, who is suffering from pancreatic cancer, said he had been to every cabinet meeting since January with the exception of a couple he missed while on European business. He also said he had not shirked participation in Dáil question time or avoided his legislative duties while completing various treatments.

The minister, who made history as the first Fianna Fáil party member to deliver the keynote oration at Béal na mBláth, called on all in public life to let the spirit of Michael Collins inspire them through the current economic crisis.