Advocacy groups broadly welcome Government's move on banks

AGENCIES' REACTION: SOCIAL AND community advocacy groups have broadly welcomed the Government's move to guarantee all deposits in Irish banks.

Cori director Fr Seán Healy said the Government should protect vulnerable people and the "working poor" as well as the economy.

"The Government's guarantee arrangement to safeguard all deposits was a decisive move to protect the economy as it tries to respond to dubious banking activities both internationally and nationally.

"In its budget on October 14th, Government will have a major opportunity to take equally decisive action to protect the vulnerable who are under serious threat in this current situation."

Meanwhile, the Combat Poverty Agency said the Government should use the opportunity to guarantee the right to what it called a universal "no frills" bank account for every citizen.

The agency's head of communications, Bevan Cody, said approximately 10 per cent of the population did not have a bank account.

"This has a range of implications in terms of their security and their ability to undertake normal transactions, accumulate savings or access mainstream credit rather than moneylenders."

A basic bank account for everyone would help end financial exclusion, she said.

On behalf of St Vincent de Paul, national vice-president Prof John Monaghan welcomed the assurance the Government's guarantee had brought. He said it was crucial that people remain calm. "This isn't 'Chicken Licken' country. The sky is not falling down," he said.

He said the Government should make clear that money in Credit Union accounts was also safe.

Age Action Ireland spokesman Eamon Timmons also expressed approval for the move. "Older people would have concerns so we welcome anything that would guarantee their savings. People who have built up savings after a lifetime of work and investment need peace of mind."

Anne Costello of the Community Platform, a network of 27 organisations, said she was concerned the Government's move might have negative implications for investment in health, education and social housing.

"As a society, we need to develop an analysis of why we are in this situation in the first place in order to ensure that it doesn't happen again."

The Consumers' Association of Ireland chairman James Doorley warned the Government's announcement had the potential to cost taxpayers. "It would be unacceptable if banks were to punish Irish consumers and taxpayers who fall behind with loans and debts because of the global downturn, while at the same time their taxes were being used to support the very banks that were being unreasonable in dealing with debt," Mr Doorley said.