State's approach to fiscal crisis flawed, says justice group

THE GOVERNMENT’S Nama approach to the current fiscal crisis has been described as “flawed” by Social Justice Ireland (SJI).

It said that the “€7 billion gift to banks is likely to undermine State’s finances and public services for years to come while failing to secure credit for businesses.”

It has described this “gift to banks” as “unnecessary” and noted that it would place “no obligation on the banks to give priority to supplying credit to businesses”.

It has also said that the Government “may be over-valuing the assets being purchased.”

To correct these “flaws”, SJI proposes that the “Government ensure nothing beyond their true current market value should be paid for the assets being purchased.”

It said “the additional €7 billion should not be paid to the banks for these assets” and that the Government should “buy back the ICC Bank it sold some years ago and use it as the mechanism to address the credit problems being experienced by small and medium businesses.”

Social Justice Ireland is an organisation of individuals and groups, lay and religious.

Members are committed to building “a just society where human rights are respected, human dignity is protected, human development is facilitated and the environment is respected and protected”.

It was set up by Fr Seán Healy and Sr Brigid Reynolds, previously of the Justice Office of the Conference of Religious of Ireland (Cori).