BUSINESS OPINION: Unlike our island neighbours we seem to have lost our sense of outrage, writes JOHN McMANUS

IT’S A simple question: if the people of Iceland can apparently refuse to be made pick up the tab for the incompetence and greed of their banks and people who did business with them, why do we have to?

The answer is more complex. Iceland has done several things over the last 18 months that the Irish Government considers to be beyond countenance. Rather than prop up its broken banks, it let them fall; wiping out shareholders and forcing lenders to the banks – the ubiquitous bond holders – to accept the losses associated with their investment.

Small deposit holders in Britain and Holland who were lured into putting their money on deposit with Icelandic banks by high interest rates have been compensated by their own governments.

But the people of Iceland are now baulking at repaying the €4 billion paid out by Britain and Holland.

Iceland has done all these things and not disappeared under the North Atlantic. Life goes on there, albeit in somewhat more straightened circumstances than previously.

But you could say the same of Ireland: wages and welfare payments have been cut; unemployment is heading for 13 per cent, and so on.

Indeed, you could argue that things would be a good deal better than they are here if we did not have to stick €20-€25 billion of borrowed cash into the banks to keep them afloat.

We are just like Iceland - apart from where it matters - The Irish Times - Mon, Jan 11, 2010