Junior minister warns of repeat of Ulster Bank debacle

The Ulster Bank debacle could be repeated in another bank and the “whole country” could be brought to a standstill if action is not taken now, a minister has said.

Shane McEntee called for the Central Bank and the financial institutions to be hauled in to ensure systems were in place to prevent a repeat.

“This can happen any bank,” said Mr McEntee. “It can happen again and the whole country can be brought to a standstill.”

Mr McEntee, a junior agriculture minister, was speaking on the Government’s behalf during a Dáil debate on the issue yesterday. The matter was raised during topical issues, which allows TDs to raise urgent matters of concern.

Ordinarily, the response is given by a minister or junior minister whose portfolio is linked to the issue at hand.

Mr McEntee initially stuck to an official script after the matter was raised by the opposition.

He said Ulster Bank’s chief executive had assured the Government the matter was being addressed as a top priority. “Ulster Bank’s management have stated that no customer, including customers of other banks, will be out of pocket as a result of this issue,” said Mr McEntee. “We know that they will keep to their word and ensure that this will be the case for all Irish customers — we’ll have to hold them to that.

“Once their systems are up and running, they will commence the process of refunding customers for any interest or fees or charges that have occurred as a result of this incident.”

Sinn Féin finance spokesman Pearse Doherty asked why the oversight and regulatory systems had not been robust enough to stop the problem.

Fianna Fáil finance spokesman Michael McGrath, warned that assurances that no customers would be out of pocket were insufficient.

He said additional assurances were needed that no black marks would be recorded on the credit histories of those who missed mortgage or loan repayments through no fault of their own.

When Mr McEntee responded, he went off-script and conceded the issue could happen again, and to any bank. “[For that reason, it is] crucial… that the relevant bodies should be brought in here, and go through what went wrong.

“Someone going for a car loan in six months’ time or 12 months’ time, a button will be pressed, [and there could be] a black mark against you. We have to get those people in from the Central Bank, in conjunction with the banks, to ensure that that does not happen.”