Doherty: ‘Donohoe protecting bank profits against official advice is unjustifiable’

Sinn Féin spokesperson on Finance, Pearse Doherty TD, has said the revelation that Paschal Donohoe went against official advice to reverse a decision to make AIB and Bank of Ireland pay a fair share of the bank levy is unjustifiable.

The Donegal TD said that this was done at the expense of the majority state-owned bank, PTSB, and ultimately the Irish taxpayer. 

Responding the reporting in the Irish Times, Teachta Doherty said: “The Irish taxpayer is being asked to pick up the tab again to protect the obscene profits of AIB and Bank of Ireland.

“The decision to reverse plans to make these big banks pay a fair share of the bank levy is frankly hard to believe and in the words of department officials ‘difficult to justify’.

“These banks are making billions in profits and paying no corporation tax. This modest proposal would have at least meant they paid a little more towards the bank levy.

“Currently PTSB, a majority state-owned bank, is paying a disproportionate amount of the bank levy while the more AIB and Bank of Ireland get away with yet another sweetheart deal.

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“The state no longer owns shares in AIB and Bank of Ireland making this a really bad deal for Irish taxpayers. 

“This decision benefited these highly profitable banks at the expense of the public purse and Irish taxpayers and raised more serious questions for the former finance minister. 

“This comes on the back of a decision he made to give the world bank €10m more than the bank had requested before going on to take up a €600,000 a year job with the same institution.

“This is yet another example of how Fianna Fáil and Fine Gael looked after the interests of those at the top in this year’s budget.”