Lucinda Creighton (Dublin South East, Independent) | Oireachtas source

Like many, but perhaps not all, colleagues on both sides of the House, I shall begin by paying tribute to the Minister of State, Deputy Brian Hayes, and the Government on working very hard to ensure we can exit the bailout on 15 December. Many people, both in the press and in the Houses of the Oireachtas, will contend international factors brought about Ireland's capacity to re-enter the market and pull back from the precipice. Some attribute this to the reduction in interest rates in 2011 and some will cite the ECB's decision to provide €1 trillion in liquidity later in 2011. Others will cite Mr. Mario Draghi's crucial speech in London in 2012. There is no doubt all these external factors have been of great benefit to Ireland and have had an important impact on bond market sentiment. However, it is also true to say that none of these external factors could have improved investor sentiment dramatically in Ireland without strong, stable management of our public finances. That is the contrast and what has been delivered over the past two and a half years or so.

We must acknowledge that fiscal consolidation began under the late Minister for Finance Brian Lenihan. It is important that we pay tribute where appropriate. The policy has been continued and developed by the current Minister for Finance, Deputy Michael Noonan. It has been a gargantuan task in the face of what was a huge existential crisis in this State. It was probably one of the biggest since the arms crisis in the 1970s.

The Irish have shown great maturity and willingness to exercise their democratic rights where they are best exercised, namely, the ballot box. The exercise of democracy might not produce the sort of social discord or clash of ideologies which brings people onto the streets, which certainly sells newspapers and from which some in this House might hope to profit for their own political ends. That said, it is a genuine reflection of the true nature of our Republic and I am very proud of it.

In March 2011, at a time of great uncertainty and turmoil in this country, the Irish voted for something new and entirely different from what had obtained previously, and something that would remove them from the failings of the past. They voted for more than they have received under the current Government but I commend the Government and all Members of the Oireachtas on their collective role in steering Ireland through this unprecedented period.

It is fair to say the threats the State faces are not over. Our enormous national debt, which is referenced by many speakers, the ongoing political instability in the euro zone, particularly in Italy and Greece, and continued economic stagnation right across the Continent mean that very serious risks continue to exist. We must remain on high alert. Against this backdrop, the decision not to avail of a credit line as part of our exit from the bailout on 15 December is one I simply do not support, for three reasons. Deputy Barry has got it wrong by suggesting a credit line would actually cost Ireland rather than result in saving taxpayers' hard-earned money. There is a €600 million cost associated with maintaining the high cash reserves in the NTMA. That cost is approximately 12 times the estimated cost of a credit line. Those are the figures.

The second reason is Ireland's self-imposed exclusion from the ECB's limitless bond-buying programme, or OMT.

Third, I am seriously concerned that the independent advice of the NTMA, the agency responsible for managing our €200 billion in national debt, was completely ignored in March, July and as recently as October, as was the advice of the independent Irish Fiscal Advisory Council. The two parties now in government called for the establishment of the latter when in opposition.

I have listened very carefully to the comments of the Minister for Finance, Deputy Noonan. I have commented on his comments several times in recent days and do not believe his arguments stack up. He stated the main reason he believes we ought not to benefit from a credit line is that he wants to re-enter the markets when conditions are benign. Nobody disagrees with that. It is a false choice as nobody is suggesting we should not re-enter the market. It is simply being suggested that we do so with a safety net. The other suggestion is that the German Bundestag, along with other parliaments, would vote against a proposed credit line. That has been debunked by senior spokespeople in the German Government and elsewhere.

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