EXTENSION OF BANK GUARANTEE SCHEME DISAPPOINTING

Fine Gael’s Dr. Twomey has said that he is disappointed that an extension of the bank guarantee scheme is necessary.

“The European Commission will decide before the end of this month if it will extend the bank guarantee scheme until December 31st, as the government’s guarantee for senior debt which has priority over unsecured debt is due to end on September 2010.”

“Minister Brian Lenihan first issued the guarantee for €400 billion of bank liabilities during the credit crisis in September 2008. It was to last for two years and it is disappointing that it now has to be extended until the end of the year. The European Commission would like to see an end to the bank guarantee but at the moment Ireland still has to have this guarantee in place. “

“Unfortunately, the banks still need the guarantee as the international market is not making funding available to Irish banks at the moment. Despite what the government says the facts are that our finances are still not on the road to recovery and the banks are still not supporting small and medium Irish businesses. With over 4000,000 people unemployed in the country and over 18,500 in County Wexford, the government needs to implement policies that will stimulate the economy and create jobs. Unlike the government, Fine Gael has produced its New Era policy which could create up to 105,000 jobs country wide. “