Brendan Howlin (Wexford, Labour) | Oireachtas source

What the Deputy is saying is not wrong, but it is just not practical. It is like saying the value of my house was €500,000 and that it is only worth €200,000 now but I will pretend and carry on as it is still worth €500,000. The reality is that the previous Government made the disastrous decision to nationalise the banks' debts. My party and I voted against it. That was what we were lumbered with and we cannot make it go away by saying we will not pay it anymore because there would be enormous consequences if we were to do so.

The Government has three strategies. I sound like a school teacher when I say this because I repeat it all the time but it is important to now what these strategies are. First, we must work towards having a balanced budget - so-called austerity - because ultimately we must achieve a balance between what we take in and what we spend. That is self-evident. Second, we must have a growth and jobs strategy which we doing our best to put on the European agenda. I launched the €2.25 billion stimulus package and we are seeking further elements to augment it.

The third element of our economic strategy aims to deal with the point the Deputy has been talking about. There are two parts to the bank overhang issue. The Deputy knows we are working might and main to deal with the promissory note before it next becomes due. We are determined to do that.