Question 19: Would you reverse any decisions made in propping up the banks with taxpayer’s money?

Posted by Dylan Haskins in Answers

I believe that taxpayers’ money should be used to pay for public services rather than propping up failing banks. Such was the failure of our banking system that banks were able to hide their debts from both government and regulators for decades and the money needed to re-capitalise them is endless.

Banks should be broken up, and failed sections allowed to collapse. While the blanket bank guarantee voted for by Fianna Fail, Fine Gael, the Green Party and Sinn Féin has had disastrous consequences, it would not help economic stability to reverse these decisions.

The blanket guarantee was supposed to help consumer confidence and assist the banks start lending to small firms. That hasn’t worked. Irish companies are still failing because their credit line has been cut off, despite billions having been poured into the banks.

We need to find new, affordable and sustainable ways to plug the hole in the banking sector and get Irish banks back to work. This ultimately means letting some fail.

Unfortunately, it is not certain that it would even be possible to recover the funds already lost.

The ANSWERS series will be updated daily until Feb 25th. All answers were those given by Dylan to questions received online or on the doorstep.

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