Brian Cowen (Laois-Offaly, Fianna Fail)

Are we going to have a serious discussion or not? If it was of that order, the interest that would arise, taking the average this year and last year of 5%, would mean a payment of €1.5 billion every year. The figure of €30 billion would be added to the national debt and as the Deputy is aware, the question of paying interest on the national debt and then paring down the national debt arises in regard to growth that comes into the economy over time, as happened in the past ten years during good times, when we saw our national debt-GDP ratio go down from €60 billion to €28 billion even though the volume payment of debt was around the same figure. Our economy grew, therefore, and out of that we were able to reduce the percentage of our debt as a percentage of our GNP.

If we look at the bank position and the reason the Governor would be suggesting this is a manageable situation, and I agree with him, it is on the basis of a €1.5 billion payment to be made annually. Our current deficit, in terms of spending and revenue, is €18.5 billion.

In the first instance we have to look at improving our public finances over a period that will deal with the current deficit of approximately €18.5 billion but in respect of explaining to the public the impact this has in terms of taxpayers' exposure and what it would cost, if it were a figure of €30 billion it would involve something in the region of €1.5 billion per annum.

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