Tánaiste rules out all-party group on financial crisis

THE GOVERNMENT has rejected calls for the establishment of a cross-party group to set out a strategy for regulation and oversight of the banking sector, and has ruled out the introduction of a new budget.

Amid heated and personalised exchanges in the Dáil, with recriminations from both sides about lack of co-operation on the economy, Tánaiste Mary Coughlan declined a Fine Gael offer of an all-party group to deal with regulation of the banking industry.

She said the Minister for Finance would bring forward regulatory proposals and all deputies could make an input then.

Ms Coughlan also told Labour leader Eamon Gilmore there would be no new budget. He referred to a newspaper interview with the Tánaiste, in which she was quoted as describing some features of the October budget as a disaster.

He asked if the Government “has any plans to introduce a new budget”, given her comment. Ms Coughlan said “there is no legislation promised to introduce a new budget”.

Fine Gael leader Enda Kenny said he was prepared to “supply financial spokespeople to participate in an all-party group which will set out clear regulation, a clear mandate and strategy, provide for no deals and ensure proper oversight in the banking sector if the Government is prepared to participate in such a group”.

Ms Coughlan said “it is bizarre that the Opposition is offering to facilitate the Government when every time the Government asks the Opposition to facilitate it, the Opposition is not forthcoming”.

The Government would put forward proposals on regulatory reform. “The Minister for Finance will bring forward new regulatory frameworks and I am certain all members of the House will have the opportunity to have an input in that and would welcome it,” Ms Coughlan added.

Earlier, Mr Kenny complained that “there is no sense of realism from this Government” about the economy as he and the Labour Party called for Dáil business to be set aside for a discussion on the “grave and escalating situation”. He said that, because of the imposition of “a selective, biased and unfair pension levy, every State office in the country is being picketed today”, including the Dáil.

Mr Gilmore claimed “the Government has had its lapdogs out over the past week or so asking why the Opposition does not stay quiet and support the Government and why we cannot all get together and agree these things”.

The Dáil was the forum to agree things, he said, criticising the Taoiseach for comments that “the time was not appropriate for discussions with the trade unions. The reality is that the economic problems facing the country will not be solved in the absence of agreement”.

He said the Government insists “on doing things its own way and then spins the line that it cannot get the agreement of the Opposition”.

When Minister for Transport Noel Dempsey said “if you came up with a few ideas we would have something to discuss”, Mr Gilmore rounded on him: “We produce more ideas in one day than in 12 years from you.” There were personalised exchanges between Mr Dempsey and Mr Kenny over who had an “agenda”. Mr Dempsey claimed Mr Kenny and his “henchmen” were involved in “character assassination” and called on him to repeat his remarks outside the House, in apparent reference to Mr Kenny’s questions about whether members of the Cabinet were involved with or protecting the 10 Anglo Irish Bank investors.