Irish Nationwide: Taxpayers’ money used to bail out gamblers

Some explaining to do: Fine Gael/Labour Finance Minister Michael Noonan

TAXPAYERS’ MONEY should not be used to bail out gamblers, Sinn Féin Finance spokesperson Pearse Doherty TD said today as Irish Nationwide made a settlement to bondholders after its buy-back of subordinated debt which is unguaranteed.

Deputy Doherty said that the Stg£29million being pumped into “this defunct institution” could be better used in any number of ways to benefit the taxpayer such as building nine schools.

Pearse Doherty said:

Unguaranteed subordinated debt is the riskiest form of debt and the burden of buying back these bonds has fallen upon the ordinary people of this state.

The fact that any money is being paid out of the public purse by nationalised banks to buy back these unguaranteed bonds is absurd.

Given that the bonds are not due for repayment until 2016 and 2018, the Government are overseeing a blatant waste of taxpayers’ money.

The Minister for Finance needs to justify the payment of taxpayers’ money in such a nonsensical fashion by an institution that will be liquidated and wound up by the time these bonds mature.