Kieran O'Donnell (Limerick City, Fine Gael)

I welcome the opportunity to contribute to this debate. In discussing the Bill and agreeing to an additional bailout programme for Greece we are showing our solidarity with the Greek people. It is extremely important that Greece, like Ireland, meet its requirements under the programme.

In the limited time available to me I would like to touch on Ireland's solidarity with its European partners. It is stated in media reports that the Governor of the Central Bank, Professor Honohan, is attending a meeting of the ECB Governing Council in Frankfurt today. What we need is solidarity from the European Central Bank, the European Commission and the EFSF. We also need flexibility, in particular from the ECB which of late has shown a degree of flexibility not seen heretofore by way of the provision of €1 trillion in funding for three years at a rate of 1% to the banking system, in respect of which banks can bid on an unlimited basis.

We need flexibility on the Anglo Irish Bank promissory note for a number of reasons. The promissory note, in terms of construct, wa artificial. Interest was set at the prohibitive rate of 8%, which has had a major effect on our budgetary position on an annual basis and debt levels. If we are given flexibility in this area, particularly by our European partners and the ECB, we will be in a position to meet our 8.6% deficit to GDP target for the current year and our deficit to GDP targets in future years. We would also save approximately €1.9 billion in interest charges, which would have a positive impact on our day-to-day expenditure and benefit the European Union.

The Anglo Irish Bank promissory note needs to be restructured. The Government is in negotiations with the troika in this regard. It is important that sufficient time is provided to get this right. In the meantime, deferral of the €3.1 billion due on the promissory note at the end of this month should be facilitated by the ECB, the European Commission, the EFSF and our EU partners. This deferral could be accommodated by way of Government bonds or an additional promissory note. Sufficient time must be provided to allow the troika consider how best to restructure the promissory note, thus ensuring the burden on the general public and Irish taxpayer is reduced and our recovery continues. What is good for Ireland is good for the European Union. It must be made clear to our European partners that a restructuring of the promissory note and, in the event of a conclusion not being reached by the troika, deferral of the payment of €3.1 billion due at the end of this month would benefit Ireland and the European Union, as we are in this together. This is all about solidarity which we are showing today for Greece. We need continued solidarity throughout the European Union. I wish the Government and Professor Honohan well in their discussions on the restructuring of the promissory note.

See this speech in context