Lenihan refuses to clarify Gormley statement on bank guarantee
A Department of Finance spokeswoman said the minister had already explained the background to the decision to a Dáil committee and would not respond to calls for him to clarify statements made by Environment Minister John Gormley that the guarantee had been agreed a full day prior to that previously claimed.
In the interview on RTÉ radio last Saturday, the Green Party leader said the proposal had been discussed “in some detail” at a Sunday, September 28 cabinet meeting, more than a day before the Government claims it was bounced into the decision by the possible collapse of Anglo Irish Bank late on Monday, September 29.
He also said the cabinet had received “expert advice to go down the guarantee route.”
Labour Party finance spokeswoman Joan Burton said: “In the account given by Minister Gormley, it was revealed for the first time the entire cabinet had met on Sunday, September 28, and had agreed to introduce the blanket bank guarantee that was announced in the early hours of September 30.”
She added that it was the first time it had been disclosed that there was a cabinet meeting that Sunday and that all ministers had been involved in making the decision to issue a blanket bank guarantee.
Ms Bruton added: “These new revelations call into question what else we have not been told about the events leading up to the issuing of the fatal blanket bank guarantee on September 30, 2008.”
Yesterday Mr Gormley said: “A meeting of Government was held on September 28, 2008, to discuss Budget 2009 which was then in preparation.
“At the end of this meeting, the Minister for Finance briefed colleagues on problems experienced by Irish banks in the context of international developments; that contingency arrangements were being prepared; that the situation was being closely monitored and that the focus was on banking system stability.
“While no formal decision was taken arising from the briefing, there was a clear understanding some government action would have to be taken if the situation deteriorated.
“There were discussions between myself and the Minister for Finance on that Sunday. The further deterioration in the situation on that Monday led on to the discussions and decision on the night of Monday/Tuesday, September 29 and 30, 2008.”
