Workers Party councillor
Davy Walsh (Waterford), has said that the Governor of the Central Bank should concentrate on his own job rather than trying
to steer government policy further in the direction of public service cuts.
Cllr. Walsh was responding
to comments by the bank’s governor Mr. John Hurley who in publishing the Central Bank’s annual report for 2008
today had called on the government to avoid tax increases and to concentrate on spending cuts, particularly in the public
sector, as a means of riding out the current financial crisis.
“It was on Mr. Hurley’s watch as Governor of the Central Bank and Financial Services Authority
that the banking sector in this country lent itself into severe crisis and precipitated the greatest financial disaster that
this State has seen in its 90 year history. Despite engaging in reckless lending
practices, particularly in the construction area, not one bank was warned that it was doing wrong and not one bank was threatened
that its banking licence could be removed. In fact in any other country
serious questions would have been asked and heads would have rolled”, said Cllr. Walsh.
“It is not the job
of the Governor of the Central Bank to set public policy and Mr. Hurley needs to be reminded of what his role is. He is a
civil servant, not a policy maker and not an advocate of the banks or the private sector.
If he cannot see this then maybe he is in the wrong job”.
“There is no justification
for any further cuts in public services. They are at breaking point already and
the public sector, which has been the engine of the economy since the foundation, still has the potential to get this country
moving again if only it were allowed to do so free from the interference of people like Mr. Hurley who want to regulate the
public sector to death while removing all meaningful regulation from the private sector with inevitable results like we have
already seen in the banking sector”, said the Workers Party Councillor.
Issued 14th July 2009