Overhaul of €31bn Anglo notes ‘key’

An overhaul of the repayment of billions of euro in loans used to bail out Anglo Irish Bank is the most urgent financial issue facing the Government, Tánaiste Eamon Gilmore said.

The Labour leader said the €31bn in promissory notes used to bail out Anglo was a “bum deal” agreed by the last government.

His comments come as the Government moves to renegotiate the IOUs or note repayments with the support of European countries, while hosting the EU presidency this year.

Speaking to RTÉ’s This Week, Mr Gilmore said the terms of the promissory note were unfair. Under the terms, Ireland must pay out €3.1bn every year up until 2023. Several ministers have said that Ireland will not meet the next payment, which is due at the end of March.

Mr Gilmore said: “The eurozone and Europe needs a winner and we have been making it very clear to our partners in Europe that Ireland can be the first country to exit from a programme but, in order for us to do so, we have to have this issue of a promissory note resolved.

“I think the arrangement made by the previous government was a bum deal for the taxpayer.

“It [a deal] is something that is very much a priority for the Government, it is very much an immediate priority. It is the issue in terms of our finances that we are now giving the most immediate and urgent attention to.”

Mr Gilmore said that Ireland was beginning to see a return to financial recovery.

Mr Gilmore also outlined changes agreed with Colm Keaveney over the weekend about the chairman’s role at Labour executive board meetings.

Mr Keaveney lost the Labour whip, or his place among the parliamentary party, after voting against budget cuts last month.

It was agreed at the weekend by Labour’s executive board that the Galway East TD would withdraw from meetings where Mr Gilmore delivered his report or where sensitive political issues are discussed.

“Clearly it wasn’t tenable that you could have discussions about government business or about the business of the parliamentary party or about political matters when someone who has voted with the opposition was in the room,” said Mr Gilmore.

He also said it was a matter for the party membership if they wanted to table the issue of Mr Keaveney’s continued chairmanship at the next party conference in the autumn.

Mr Keaveney was removed from a number of Oireachtas committees last week but the rebel Labour member has refused to step down from his position as party chairman.

Mr Gilmore also said he welcomed an announcement made last week by TD Willie Penrose, who said he intended to rejoin the parliamentary party. The former minister had lost the party whip after opposing the closure of Mullingar barracks.