Call for referendum on Anglo bonds

PROTESTORS and the opposition ratcheted up demands for a referendum on the EU-IMF deal for Ireland, claiming the Government had done a U-turn on its pledge to withhold the payment of €715 million to unsecured bondholders.

There were angry exchanges in the Dáil yesterday after Government parties voted down a debate on the massive payment to Anglo Irish Bank bondholders, prompting Sinn Féin and United Left Alliance TDs to walk out in protest.

Critics of the bond pay-out point to Greece’s decision to hold a referendum on its latest bailout, saying Irish people deserve the right to vote on the EU-IMF deal.

Independent TD Sean Donnelly referred to comments by Finance Minister Michael Noonan, who last December, before being in government, said it was “obscene” that the liability of bank debt was transferred to taxpayers and that it was “indefensible” that people should have “to underpin the speculation of hedge fund investors”.

Mr Noonan said he was unhappy paying the bonds but it was the “better of two evils”, rather than defaulting.

Sinn Féin leader Gerry Adams called for a motion to instruct Alan Dukes, chairman of what was once Anglo, not to pay up.

“I’ll give you an explanation why it’s still being paid — the ‘Golden Circle’ is still in place,” Mr Adams said.

He said the country was broke and could not afford to foot the bill for Anglo bondholders. “Fianna Fáil created the mess. This government is implementing Fianna Fáil policies. They need to get real around the fact that these are unguaranteed, unsecured bonds. It’s a huge amount of money, given the state of our health services and schools.”

The next due payment of €1.5bn to bondholders in January meant that people needed to “cause ructions”, Mr Adams said.

The Government’s voting down of the debate was a “charade”, he said, reiterating a call for an Irish referendum.

Protestors outside Leinster House echoed Sinn Féin’s calls for a vote. United Left Alliance’s Richard Boyd Barrett said: “When the Greek people have forced their government to concede a referendum on the whole mad austerity and bondholder bailout policy, we can’t even have a vote in this country on €700m being handed over to a toxic bank like Anglo Irish and the bondholders in that bank.”

Earlier, Tánaiste Eamon Gilmore said the Government would continue to negotiate changes to paying bondholders with the European Central Bank, who are strongly against Ireland reneging on payments.