Time for adult supervision: Council to sue AIB over insurance

IT seems more than bizarre that two arms of the State should confront each other in court, that they cannot reconcile their differences as they have, in theory at least, the same objectives — serving the public. 

It seems a waste of money too and plays into the well-greased palms of the legal profession.

Public money spent paying legal firms’ incomprehensible fees could be, indeed should be, put to far better use than funding a shouting match between aggrieved public servants.

Yet that very scenario is in prospect once again.

AIB is more or less fully owned by the State and the bank is facing at least eight cases brought by Cork County Council.

The council wants the bank to release insurance policies it holds on developers who have not finished a series of housing estates pock marking the countryside.

The council’s chief executive Tim Lucey has been encouraged by councillors to take this action because they claim that “residents have had to endure dire conditions for years”.

The councillors also suggested that it is far more difficult to draw down these insurance policies from AIB than it is from any other financial institution. What a pity the bank did not show the same reticence when it lent so very recklessly.

It should not be forgotten either that the cost of these bonds was factored into the original cost of the houses so the residents have already paid for this cover.

It’s time for some adult supervision — over to you Minister Noonan.