Sinn Féin Cllr Michael Browne has said the money saved through cuts to social welfare payments is being spent on a maturing bond in Anglo Irish Bank. Michael is referring to the €750 million which Anglo will pay for a senior unsecured debt which is not covered by the state guarantee.
The social welfare cuts imposed by the Fianna Fáil/Green Party Government will save the state €873 million in the short term but in reality will cost the state more as disposable income is cut, consumer spending reduced and, inevitably, more jobs will be lost.
This week Anglo Irish Bank, the bank that is being paid for by Irish taxes, will pay out €750 million for a maturing bond despite the fact that the debt is not covered by the state guarantee.
This is the result of the Government’s refusal to burn bondholders in Anglo. So if people are wondering where the money is gone from their social welfare payments we can see clearly that it is going to senior bondholders in Anglo Irish Bank.
Sinn Féin is the only party that has called for Anglo’s bondholders to be burned, for the introduction of a bank resolution bill to guarantee deposits and for a reversal of the savage cuts implemented by this Government.
That is the political choice that is before the people of South Tipperary in this election.