Mattie McGrath (Tipperary South, Fianna Fail)

I welcome the Bill and thank the Minister and his officials for all the work they have done on the Bill and on the entire financial situation that pertains in our country and throughout the eurozone at this point in time. Ireland along with all the other eurozone countries has agreed to assist Greece through the issue of loans, which Greece must repay within a fixed time period. We are not paying money to Greece; we are lending it money and it is important that we all understand that. If Ireland needs to borrow money to fund these loans it will be at a lower rate than Greece is paying us back, allowing the State to make a profit. While it should not be about profit, we need to have cognisance of our situation in Ireland.

It is important to remember that not only is there a financial return to the State for providing these loans, but there is also a far wider economic return safeguarding financial stability in the eurozone. That cannot be overstated. It is vital for all of us that we have a stable euro currency and that we safeguard the situation throughout Europe. We cannot under any circumstances allow any undermining of the euro. We cannot even entertain any implied threats that we might have a two-tier system for some countries regarding support for the euro. This cannot be accepted in any shape, make or form.

Stability is essential for businesses, citizens and the State. Businesses need financial stability to trade with our European and global partners. We all know how difficult it now is for businesses to stay alive and have the cash flow they require on a weekly and daily basis to meet their commitments to pay for wages, commodities, imports etc. It is vital that to have financial stability for our businesses whether they be big or small. I refer to small and medium-sized businesses right up to some major organisations. Without that stability they cannot have the confidence to continue trading and the banks may not have the funding to support those businesses, which they had a commitment to support heretofore. In many cases they are withdrawing that commitment and are uneasy about it probably because they do not have the financial certainty or stability that is required on a euro-wide basis.

As citizens, all of us need financial stability to spend and invest with confidence, which is vital for every household in the country regardless of their income. I know many of them are very chastened and worried at this point. Above all confidence is required to allow people to be able to go about their business and live as normal a life as possible in difficult circumstances. By spending their money prudently they can give a boost to businesses. It is a holistic situation as far as I am concerned and if the consumer does not have the confidence to make ordinary day-to-day spending or invest in a new car or house renovations etc., we know what that leads to. We have seen too much of that in the past 18 months since the financial crash. In this regard the bankers have a major responsibility. While we have ring-fenced in the business stabilisation fund certain funding for the bankers to lend, clearly they are not doing this.

This bailout needs to be seen as a total commitment by Government and now by extension from governments of all the European countries to stabilise the situation in Greece. Above anything else we will not be at any loss for doing it, but we need to stabilise the euro currency. This country has a proud record of supporting many countries throughout the world in times of dire need going back over generations. In the present situation in which Greece and we find ourselves, I welcome the austerity measures that Greece has introduced despite the upsetting reaction. We understand where we are ourselves that we have had to do a major job of financial rectitude. We are well on the road to doing that but it is not easy. I compliment the citizens of this State for accepting their share. We all need to accept our share. There is no point in having the blame game. We all made many mistakes, including bankers. We are all in it together, ordinary people, investors from Ministers down and bankers. We know where we are and what we need to do. We need to find another €3 billion, which will not be easy this year.

When I came in to the Chamber Deputy Burton referred to the comments of the Minister, Deputy Ó Cuív, which was timely. From my point of view there is no question of vulnerable people, including old-age pensioners, being undermined or having money taken from them by the Government, because I, for one, would not stand for it. We need to look at every euro that is spent and examine how it is spent to ensure that it goes to the most needy and deserving. In this context what we are doing for Greece is also vital. It needs to be spent fairly and there needs to be a plan. Here at home we need to examine where every euro is spent and that the most needy are getting it. While I know people have entitlements, if people are in a comfortable position, they may not need as much as the people who are in need and may be on a small single pension in a household. We need to look after those people.

My party has a proud record of looking after the pensioners. I intend to ensure that continues, which I am sure is the intention of the Minister, Deputy Ó Cuív, and the Cabinet. It is a matter of examining the system. It is only May and the budget will not be announced until the end of the year. It is timely. The media have picked up on it which is also welcome. I resent the scare tactics from Opposition parties which understand how bad the situation is. We need to ensure that the most needy are looked after.

EU governments are confident that the new Greek Government is making determined efforts to meet its fiscal and structural challenges. The significant reforms announced on 2 May are clear evidence of this commitment. Those reforms needed to be announced and acted upon before any other European states could give their backing to the euro area loan facility. It is important that we would have the confidence now as partners in Europe given that it has made those commitments. While we see that taking place we should not shirk from our responsibilities and should provide this necessary propping up of a fellow member state. Given the difficult times we are in, we must show solidarity with our European partners and we cannot turn our backs on a fellow European state in its time of need. Those who live in glass houses should not throw stones.

We never know at what time in the future we might have different crises other than financial ones. As we have seen recently with ash problem from the volcanic eruption, we do not know what kind of act of nature or God might defeat us all. We are not the mightier than the man above. Anything can happen and we always need to understand from where we have come and where we are going. We should try to support our colleagues as we would expect the same support from them, which I feel we would also get.

We need to send the message to the world markets that the EU as a unit is strong and acting in unison. We need to try to bring all the countries on to a level playing field to ensure that they are supported while they are committed to putting their own houses in order. People can claim that Greece was reckless as they can claim that Ireland was reckless. We were and we are paying the price now but thankfully we are not in the same situation. Nobody knows how long we might be involved or the different reasons. It is not for us to apportion punishment or blame but to realise that mistakes were made, be man or woman enough to admit them and support everybody who admits to making a mistake. A person who never made a mistake never made very much and that applies also from a business point of view.

We all made mistakes and Greece probably made them to a bigger extent but now it is trying to sort out its problems. It is vital that we, as a Government and as a country along with all EU countries, provide that necessary shoulder and support for a colleague country in a difficult time. However, we must not contemplate any undermining of the euro. That is vital for all member states. We must not give any credence, lip service, engagement or discussion to the mention of a two-tier euro. I know where such talk comes from, as we all do. That would be totally counterproductive and bad for the eurozone. It would send out the wrong messages and we cannot afford that.

We are making a profit on this, not that we wish to crow about it, but it is important that the citizens of the State should understand that. It is not throwing money into a black hole as has been enunciated by some people but a matter of supporting a colleague state and, in so doing, making a profit. There will be a risk for the three-year period during which we must pay our share. I hope all member states will play their fair part although a bigger portion is involved for other countries. It would be an undermining of the entire eurozone if any of our colleague states did not engage fully, step up to the plate and support Greece at this time.

I thank the Cathaoirleach for listening and I commend this Bill to the House.

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