Labour urges Anglo wind-down

Anglo Irish Bank should be wound down within a six-year timeframe, Labour’s Eamon Gilmore said today.

The party leader said there needs to be a “finality and certainty” brought to the Anglo situation because the “lack of certainty” is contributing to the State’s economic problems.

Mr Gilmore said what is “killing” the country at the moment is the “sense” that there is no end to the Anglo problem. “There’s no end to it in terms of time and there’s no end to it in terms of cost…that is what is contributing to the uncertainty about the bank itself, Irish banking and the Irish economy.”

Mr Gilmore said Government policy regarding the bank is increasing the cost to the taxpayer and instead it should “set an objective to wind-down Anglo over a period of time and to give an indicative timescale for that.”

By Labour estimates, the wind-down of the bank within five or six years would cost the State €4 to €5 billion less than the Government’s current approach.

The Government appeared to favour an orderly wind-down over a lengthy period following yesterday’s Cabinet meeting.

Minister for Finance Brian Lenihan will travel to Brussels for a routine meeting with his fellow EU finance ministers on Monday, and the issue of Anglo is expected to feature in discussions. A final decision on the fate of the bank will depend on the view taken by the European Commission and the European Central Bank on the issue.

Speaking at an event in Dublin today, Minister for Health Mary Harney said the bank would have to be wound down in the “appropriate way”.

Ms Harney said she was not in a position to say whether or not the wind-down would be less than 10 years. "It's under discussion with the ECB and the Central Bank."

Meanwhile, Mr Gilmore also denied weekend speculation that Labour would be prepared to go into coalition with Fianna Fáil after the next election should Taoiseach Brian Cowen step aside as leader.

He said Labour will not put Fianna Fáil back into power irrespective of who was leading the party. Mr Gilmore said his party would not join Fianna Fáil in “any shape or form”.

Mr Gilmore said the Government’s desire to hang onto office for as long as possible is contributing to the problem of uncertainty surrounding the country. “The only thing that will bring about a sense of political certainty and a sense of political stability is the calling of a general election and the sooner that that is done the better.”

He also said it would be “very brave” to predict the Government would survive beyond Christmas.