Labour will introduce tough new rules to clean up the financial sector if elected to government, leader Eamon Gilmore vowed today.
The party pledged to roll out a binding code of practice for all companies on the stock exchange and scrap cross-directorships.
The position of chairman and chief executive would no longer be allowed to be the same person, while a former chief wouldn’t be able to become chairman.
Mr Gilmore said the measures would restore confidence among consumers and investors. “Basically what we’re trying to do is to put an end to what Brian Lenihan described as the culture of crony capitalism,” he said.
Labour said its "Never Again" plan aims to ensure the interests of a golden circle of developers, bankers and speculators would not be put before the interests of the country.
The party also said it would extend the powers of the Oireachtas to make committees hold people to account.
Other points of the plan include setting up a banking commission to clear out the boards of the major banks, approving new appointments, and vetting and approving business plans; prohibiting non-executive directors from serving on a board for more than seven consecutive years; and requiring a chairman and chief executive to assume direct responsibility for good corporate governance.
“The Labour Party’s proposals today are about restoring integrity in our politics and our economy,” Mr Gilmore said.
PA