Brian Cowen (Laois-Offaly, Fianna Fail)

I do not agree with Deputy Kenny's views. That is why I do not intend taking them up. I want to give my reasons. It is important that they are put on the record.

The Fine Gael plan appears to rely heavily on allowing the financial system to default on certain bonds or loans that have been issued or availed of. That has been clearly stated. In deciding whether the State can allow the financial system to default on such loans I would take account of an expert in this field, Mr. John Corrigan, director of the National Pensions Reserve Fund who, in his evidence on 14 May last to the Committee of Public Accounts, stated:

There is a close relationship in terms of how the capital markets view the bonds outstanding in respect of the banks and how they view Ireland as a sovereign borrower. Walking away from the bank debts and allowing them to default on the bonds, in effect their senior debt, would have a very negative read across for Ireland Inc. I have little doubt that the cost of borrowing to the State would hugely increase if that approach were to be adopted.

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