Mattie McGrath: Government Abandoning Rural Ireland Over Bank Closures
Mattie McGrath challenged the government over bank closures and the costs of the bank bailout, accusing ministers of supporting banks over taxpayers and abandoning rural towns. He cited branch closures in Caire, Castle and Templemore, a dissolved bank levy and a 14% state shareholding in Bank of Ireland.
Allegations on bank support and levy
McGrath said the bank bailout has cost Irish taxpayers £60 million, including interest to date, and criticised the government for dissolving the bank levy - of which the banks have only paid £1.2 billion. He accused the government of supporting banks instead of taxpayers and said ministers were "in bed" with the banks.
Local closures cited by the deputy
He listed closures and exits affecting rural Ireland, naming three branches in Caire, Castle and Templemore in temporary closing, and saying banks are exiting rural towns. He also referenced EBS and "Osterbank" as examples of institutions leaving local areas and warned of multiple future closures.
State shareholding and calls for action
McGrath noted a 14% state shareholding in Bank of Ireland and urged the government to exercise that ownership to protect rural banking services. He criticised the minister's response as feeble and sought a stronger intervention to stop branch abandonment.
Minister's response on limits and commitments
The minister acknowledged the impact of branch closures on towns, businesses and residents but said a 14% shareholding does not give the government a role in running the banks. The minister emphasised that the government is not minded to run banks but is committed to rural Ireland.
Proposed alternatives and upcoming measures
The minister said the government will look at alternative supports for towns through other agencies and the OnPost network, aiming to maintain as much of the rural network as possible. He said a range of regional and rural development initiatives have been announced and more measures will be announced in the coming weeks.
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The bank bailout has cost the Irish taxpayers £60 million, including interest to date. Your government has dissolved the bank levy, of which the banks have only paid £1.2 billion. I'm talking to you today, asking you the concerns about what's happening with Bank of Ireland. Three branches in Caire, Castle and Templemore are in temporary closing. All over the country, banks are exiting rural Ireland. EBS are leaving temporary town. We saw what's happening with Osterbank. When is your government going to get real? We have a 14% share in... Bank of Ireland and exercise that. I also had Minister O'Brien this morning with feeble words and a little tickling of what's going on with Davies and elsewhere. So, you're not supporting the taxpayers, you're supporting the banks. You're actually in bed with them. You're allowing this closure and abandonment of rural Ireland to go on week in, week out, and there'll be multiple closures coming and they're ready because they get away with it. Thank you Deputy, time's up. Why have you abolished the banking, Libby? First of all, I want to thank all of the deputies for raising this issue because I do understand and I do accept the impact that these bank closures have on the various towns across the length and breadth of the country that the deputies raised and the implications for the towns concerned, for businesses in the towns, and for people in general in terms of doing their banking. The 14% shareholding does not give government any role in terms of the running of the banks and that has been the position for, as you know, for quite a long time. The government does not run the banks nor is it minded to run the banks. That said, we are committed to rural Ireland and we are committed to looking at alternative ways now to support those towns through different government mechanisms and agencies and also in the context of OnPost to see what we can do in terms of the OnPost network, in terms of supporting OnPost to, not just in the context of its deal with the Bank of the Bank, Ireland, but more broadly speaking, to maintain as much of its network as possible across rural Ireland and then to take other initiatives in terms of investment in such towns under a whole range of headings and we are committed not just to regional development but to rural development in terms of government funding of a whole range of initiatives which will be announced, some of which already has been announced and more of which will be announced in the coming weeks. Thank you.
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