Lenihan insists lack of detail is to protect the taxpayer

THE Government’s reluctance to divulge the full detail of the EU-IMF negotiations stems from the desire to protect taxpayers, Finance Minister Brian Lenihan has insisted.

“If the Government has been reticent in making public comment, it has been in the interest of protecting the taxpayer,” he told the Dáil yesterday.

He said it was the Government’s job in the discussions to “assess the options in light of the facts” and there was no benefit in “jumping to conclusions”.

His comments came as the opposition scorned the Government’s stance and praised Central Bank governor Patrick Honohan for giving extensive information on the situation in a radio interview.

“(This) was a classic example of the Government’s ineptitude when the governor of the Central Bank felt he had an onus to come out and explain what was happening in the absence of any explanation from the elected Government,” Fine Gael finance spokesman Michael Noonan said.

He claimed both Mr Lenihan and the Taoiseach had been “bluffing for weeks” but were now being found out.

Ireland’s right to self-determination had been given away because of the “arrogance and avarice” of the “inept Government”, Mr Noonan added.

Labour finance spokeswoman Joan Burton said Ireland would regain its confidence and sovereignty only when “we see the passing of this Government”.

Sinn Féin finance spokesman Arthur Morgan said the Government had been caught gambling “not just with the entire economy of the state but also with the future of our people”.

Following statements on the issue, Mr Lenihan took a number of questions.

He confirmed deposits in the country’s banks were safe, but said it was possible that the banks themselves would need more help.

The purpose of the discussions was to determine “the best way to provide any necessary support”, he added.

The provision of an EU-IMF “contingency capital fund” – in which money would be made available to Ireland to be drawn down by the banks only if required – “would be a desirable outcome”, he said.

“However, we are not at that point at this stage.”

He refused to estimate the scale of the fund that might be put in place, saying no figures could be given until the discussions were held.

He confirmed, however, that the banks are currently sourcing liquidity funding from the European Central Bank at an interest rate of circa 1.5%, and that were this money to come instead from an EU-IMF fund, the rate could be much higher, possibly between 4% and 5%.