Taxpayer risks getting poisoned by €90bn toxic debt nightmare

THE Government’s army of spin have been busy over the past week. They have been trying to convince us that the National Asset Management Agency (NAMA) plan is: the only way to restore bank credit to the wider economy; there is no alternative and they know what they are doing.

My scepticism starts with my intuition. I remember all too well when previous governments were bounced into similar bail outs. In 1985, as a government back- bencher, I recall entertaining delegations from AIB about their ICI debacle. Their systemic requirements necessitated special legislation and a financial levy. A short time later AIB shareholders prospered.

Some years later Larry Goodman encountered severe financial distress as a result of the Iran/Iraq war, export credit insurance default and diversified investments that went west. The Dáil had to be recalled to enact emergency legislation to provide examinership protection to his group. Goodman and the banks subsequently flourished.