Anglo bailout bill - Last chance saloon for Government

A cement mixer with “Anglo Toxic Bank” displayed on the drum of the truck blocked the gates of Leinster House yesterday. The stunt was obviously carefully planned.

Maybe this was just coincidental with the return of the Dáil after the summer recess and yesterday’s planned demonstration against the forthcoming budget cuts, as part of the European day of action. Coincidental or not, the events are indicative of mounting public frustration.

Today marks the second anniversary of the Government’s decision to guarantee the Irish banks. People may argue over whether such a complete guarantee was necessary, but before anyone can come to a confident conclusion, it is necessary to understand the full implications of the extent of the guarantee, especially in relation to Anglo Irish Bank.

There is little doubt that Anglo Irish Bank did not come clean about its situation initially. As a result, the Government was misinformed and it, in turn, misinformed the public.

Finance Minister Brian Lenihan at first denied that the Government was bailing out the banks, but then he later described it as the cheapest bank bailout ever, and now it is being widely described as this country’s greatest financial gamble ever. What is it? If the Government does not know, how can the public have any confidence in what is being done? Whatever needs to be done to calm the international uncertainty in relation to our banking crisis needs to be done. The cost of the Anglo Irish Bank bailout is due to be announced today.

Some recent political messing, which has led to the unprecedented ridiculing of the Taoiseach abroad, may have no direct connection with the banking crisis, but it has apparently hurt international confidence in the Government.

Earlier this month Finance Minister Brian Lenihan admitted that there had been reports suggesting that public opinion feared that the Anglo Irish Bank debacle would bankrupt the country, but he insisted the costs were manageable. He also disputed that there was a lack of international confidence in our ability to handle the problem. Maybe there is still confidence, but this has obviously been dented, as has been evident on the bond market in recent days.

The Government has staked its own credibility on resolving the banking crisis. There has been call after call on the need for certainty. Most of the experts and analysts have emphasised that the cost of the bailout of Anglo Irish Bank must be clarified, and the Government have been promising that this clarity will bring certainty and a levelling off of tension.

If there is no certainty to stabilise the pressure on Irish bonds after today, then we should recognise that this Government are a busted flush. Its credibility to handle the crisis will be utterly shattered.

They have got things wrong time, and time, and time again. Today they are all drinking at the last chance saloon.