Government TD votes against extension of bank guarantee

A Labour backbencher has become the third TD to rebel against the coalition after the Government moved to extend the bank guarantee scheme.

In a second show of dissent in the party ranks in just a number of weeks, Tommy Broughan has refused to support the scheme, which is due to expire at the end of December.

Emmet Stagg, Labour chief whip, confirmed the north Dublin TD has been kicked out of the parliamentary party just days from the Budget.

“His actions today are regarded as a grievous breach of party discipline and he has been expelled from the Parliamentary Labour Party with immediate effect,” Mr Stagg said.

The backbencher’s expulsion follows Labour’s Willie Penrose, who rebelled over the closure of Columb Barracks in Mullingar, and Denis Naughten, who was expelled from Fine Gael for refusing to support the closure of Roscommon hospital.

The latest row broke out over the renewal of the Eligible Liabilities Guarantee scheme which Labour voted against in opposition.

It was originally established in 2008 for the State to protect deposits held in banks, including Allied Irish, Bank of Ireland, Anglo Irish and Irish Nationwide.

Opponents of the scheme have said they are concerned the Government is writing a blank cheque to the banks on the taxpayers’ expense.

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