Brian Cowen (Laois-Offaly, Fianna Fail)

The Minister for Finance and his Department have not yet had an opportunity to inform the Government of that cost. However, I note the announcement by the rating agency Standard & Poors that it is revising its rating of Ireland from AAA to AA+. In considering this, one also should bear in mind the following key points. Ireland is not unique in this regard as a number of other countries have had their credit ratings revised recently. A range of factors, both domestic and international, influence the ratings that countries attract. While we recognise that we have challenges, particularly in the public finances and our banking system, the Government has taken considered and deliberate action to help stabilise and bring sustainability to the public finances for some time. That will be further evidenced in next week's budget.

Ireland is currently experiencing a significant contraction in economic growth and it is expected that we will grow above trend once world growth resumes. After a long number of years running surpluses, the Government will have to run deficits for the next number of years. A sizeable part of the deficit relates to the very substantial public investment capital programme we continue to pursue. While there is considerable pressure on the public finances, we should recall that we are coming at this from a position of relative strength given our relatively low public debt burden. While it will rise over the next few years, our debt levels should be at projected EU averages. Many of the factors that facilitated Ireland's economic success in recent years still remain. The NTMA has already successfully raised significant sums on international markets this year.

Regarding the banking situation, we have continued to take a strategic approach regarding the State guarantee, the recapitalisation policy and risk assessment is being actively considered by the Minister.

See this speech in context