OVERNIGHT DEBATE:MINISTER FOR Finance Brian Lenihan "failed the test" to provide "appropriate protection for the taxpayer", Labour finance spokeswoman Joan Burton claimed as her party opposed emergency legislation to underwrite financial institutions.
At the end of the 10-hour committee-stage debate at 2am yesterday, she said the "law of unintended consequences" had come into play, with the possible inclusion of more banks in the scheme, less than 48 hours after the original announcement.
But Fine Gael finance spokesman Richard Bruton welcomed the extension to "significant players who are important to the competitive environment that exists in the banking sector".
Mr Lenihan said the Government was "still devising appropriate criteria and standards to evaluate the issue of whether [more banks] can be admitted".
He agreed a proposal that the Oireachtas would debate the scheme, but it was "important" that the House "make up its mind fast on whether it wants to accept or reject the scheme. We want to define our relationship with these institutions in the shortest possible period."
Ms Burton compared Government assurances on protection of taxpayer liability to the indemnity deal between the Government and the religious orders to compensate victims of clerical abuse.
"We were told the religious orders would pay significant amounts, and that the burden on the taxpayer would be relatively modest." But it turned out to be "an enormous burden on the taxpayer and a relatively light charge on the religious orders".
Government had a 124-18 majority to pass the Credit Institutions (Financial Support) Bill, backed by Sinn Féin and Fine Gael. As the Bill was declared passed Government TDs and a number of Fine Gael backbenchers applauded.
Sinn Féin economy spokesman Arthur Morgan stressed the necessity of better regulation, because the banks were "simply dancing a jig" around current controls. Mr Bruton said his party supported the Bill because "it is vital to the stability of the banking system". He said "misgivings remain" and "we must take it on trust that the Minister . . . will develop and effectively apply the appropriate controls".
Three votes were taken during almost 10 hours of debate. Shortly before 11pm a Labour motion, supported by Sinn Féin, which called for the publication of the guarantee scheme before the Bill came into effect, was defeated 74-22 after Fine Gael abstained.
Opposition party amendments were defeated 73-67, including one aimed at preventing bank chief executives earning more than the Minister for Finance.
Shortly after midnight the Opposition were again united but defeated 74-67 on amendments including their call for the creation of an oversight board appointed by the Public Accounts committee.
