Government’s 'bull-headed approach’ to AIB sell-off has cost state €5bn - Doherty
The Donegal TD said it was yet another example of Fianna Fáil and Fine Gael's reckless mismanagement of public assets and public money
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has said the government’s bull-headed approach to the sale of AIB has cost the state an eye-watering €5 billion.
The Donegal TD said it was yet another example of Fianna Fáil and Fine Gael's reckless mismanagement of public assets and public money.
Deputy Doherty accused the government of ignoring his persistent warnings that their approach would amount to ‘throwing away money’, adding that the only people who will now benefit from the government's sell-off will be the AIB bosses.
“The government’s bull-headed determination to sell off public ownership of AIB has cost the state billions,” said Teachta Doherty.
“What’s worse is they are now trying to brass-neck it, portraying the sale as a success. The reality is this: Just by holding onto the shares, the state would be €5bn better off, and that is before we even account for dividends foregone.
“What is infuriating is that this could easily have been avoided. For years, I warned the government that their irresponsible approach amounted to throwing away the public's money.
“They ignored those warnings, hell-bent on ploughing on regardless. The result of them burying their heads in the sand is the now undeniable fact that the 2022 decision was a mistake.
“This was a time when inflation began to rise, and most credible analysts were saying that this would lead to higher interest rates and higher bank profits. In 2022, the public owned over 70% of AIB. Back then the share price was €2.32 when the state began its sell-off.
“The share price is now around €7. It is hard to overstate how bad a piece of business this has been.
“To add insult to injury, the only people who will benefit from the government's rapid sell-off are the AIB bosses - the CEO of AIB is likely now in line for a massive salary increase once state ownership is removed.
“This decision seems to be made on the belief that the private market is somehow better than public ownership because it simply makes no financial sense for the state finances or the public interest.
“This gung-ho and reckless decision is yet another damning indictment of the government’s staggering mismanagement of public assets.”