SIPTU President makes the case against nationalising the banks

Permanent tsb raises the interest rate on its standard variable rate loans and the leader of the largest trade union, Jack O'Connor calls for the guarantee to be withdrawn!!!

I would be generally opposed to nationalisation. However, like a lot of others, I would have supported nationalisation of the banks in the context of NAMA. The big worry about nationalisation would be that the government would interfere with commercial decisions which the banks must make.

Jack O'Connor gives those opponents of nationalisation so much ammunition with this stupid suggestion which, of course, gets the top billing on the Radio 1 news.

Brendan

The editorials of our two main papers (sorry Cork) struck distinctly different attitudes to this development. The IT took the populist bank bashing line whilst, surprisingly, the Indo took the much more mature approach of justifying the rise in interest rates.

The fact is that Ireland inc. is paying 5% or 6% on its sovereign debt. If mortgage holders are paying less than 3% then they are being subsidised by the government guaranteed banks and that subsidy is ultimately coming from the taxpayer.

I know many people who have been hit hard by the levies but who admit that they have gained even more from the government enforced fall in mortgage interest rates.

The taxpayer subsidising mortgage holders is deeply unfair and I would have thought any trade unionist worth his salt would have railed against such social inequity.