Mick Wallace (Wexford, Independent)

I have noted a few of the nice quotes made during the election campaign. Fine Gael's banking strategy, Credit Where Credit is Due, which is part of its five point plan, states: "Fine Gael was the first party to argue that it was unfair for the Irish people to shoulder all of the losses of our banks, and that it was right that investors who had lent recklessly to the banks should also share in the pain." The document goes on observe: "It is neither morally right nor economically sustainable for taxpayers to be asked to beggar themselves to make massive profits for speculators." It is hard to credit that this is the party that has given us the medicine that we have got for the past week.

In a press release in February the Minister, Deputy Michael Noonan, stated that the Fine Gael Party "will prevent the banks from ever again holding the country to ransom". The Tánaiste, Deputy Eamon Gilmore, was confident that they could renegotiate the so-called rescue deal and said: "The current deal cannot be worked". It is hard to credit the neck that the coalition has brought to this equation. There was so much talk about change and doing things differently during the election campaign, but those parties made promises which I am not sure if they knew they would not be able to keep or they just changed their minds. However, it is dishonest to promise the people one thing and to deliver something completely different.

When he was interviewed on radio on Friday morning last, the Minister for Finance was asked whether burden sharing is no longer an option. He replied that inquiries had been made with the ECB and that it had said "No". So, that is it then.

We were informed in the past that the European Union is supposed to be a family of nations and that we all look after each other. We were also informed that if one country got into trouble, the others would provide assistance. There was supposed to be a spirit of fellowship among the member states. I am not sure whether we have put the question regarding burden sharing in strong enough terms. In general, European politicians are generous and they would be sympathetic regarding the massive problems the Irish people are facing. I accept that those who run the ECB are incapable of being sympathetic towards us. If, however, we pressurise European politicians, we may obtain some comfort from them. They must be made to realise that we are in a crazy predicament.

The dogs in the street know that this deal is not going to work out. At some stage, our colleagues in Europe are going to state that they will provide us with assistance. If, however, we accept their policies in the interim, the less well off will suffer most. It is crazy that we are providing money to reckless banks while the numbers of learning support teachers and special needs assistants are being reduced. What we are doing to the young people of this country is unreal. It is all being done in the interest of paying back reckless investors who made mistakes. People invested poorly in banks that were not well run. The essence of capitalism is that one makes one's gamble and one accepts the results. One wins some and one loses some. However, the investors to whom I refer are all winning. That is incredible.

When the results of the stress tests were announced last week, an economist wrote an article in The Guardian newspaper in which he stated:

A new Irish finance minister would do three things to make a fresh start. He would reveal the full financial horrors; he would reorganise the banks to bring some order to the chaos; and he would say that Ireland, as a consequence of guaranteeing its banking system, was carrying too much debt, was doomed to economic stagnation and must invite creditors to share some misery.

Michael Noonan scored well on the first two points. On the third, he said nothing.

Late last year, the IMF agreed with this outlook when it stated, "effective resolution tools are required that can ... preserve financial stability, while ultimately allowing losses to be borne by creditors rather than taxpayers". Last November, Angela Merkel stated that bondholders should take the hit when a country is in trouble. The EU intends to make sure this happens after 2013. What is wrong with doing it now?

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