Olivia Mitchell (Dublin South, Fine Gael)

I agree that a guarantee is necessary and concur with the Minister that other countries are also extending guarantees. The difference between Ireland and other countries, however, is that the end is in sight in the latter, whereas in Ireland no progress has been made and no end is in sight. If one compares Ireland with Britain, where the authorities nationalised and recapitalised the banks, one sees that UK banks are already turning a profit for British taxpayers. Two years and billions of euro later, however, Ireland has dysfunctional banks with no sign of an improvement and no credit in the economy. As a result, unemployment has more than doubled since the employment peak whereas in Britain it has increased by a mere 1.2% from peak employment in 2007. This very different outcome for Ireland is primarily a result of the calamitous decision in respect of the blanket guarantee for Anglo Irish Bank.

The Government's decisions on Anglo Irish Bank may have been justified if, as we were informed at the time, the problem was one of liquidity. In fact, the problem was one of solvency or, rather, insolvency and we still do not know the full extent of Anglo Irish Bank's insolvency 24 months and billions of euro later. The Government's decisions are directly responsible for the downward spiral in which we find ourselves. We have learned that the Government was probably in possession of the relevant information on the night the guarantee was provided. If the Minister was not in possession of this information, the banks clearly ran rings around him on the night in question. Within weeks of the decision on the guarantee, everyone knew precisely what was the position and that Anglo Irish Bank was an insolvent, zombie institution. If the Fine Gael Party proposal for an orderly winddown had been adopted, Ireland, like many other countries in Europe, would be experiencing economic recovery.

To the extent that this financial amendment ends the guarantee for Anglo Irish Bank debt acquired prior to the guarantee date of September 2008, it is welcome in that it provides for an option to renegotiate the subordinated debt. It is a tragedy, however, that it has taken two years of pouring money into a black hole to the realise the folly of supporting a zombie bank. If the Minister were present, he would probably be able to inform the House that now that the guarantee is gone, Anglo Irish Bank will be immediately mandated to negotiate a buy-out for outstanding subordinated debt and try to make some saving for taxpayers. As I stated, it is tragedy that this has come so late.

How much of the debt acquired prior to September 2008 matured in the two years that have passed and was redeemed at full face value? Was the figure €10 billion, €12 billion or €15 billion? How much was spent recapitalising Anglo Irish Bank as if it would ever operate again as a functioning bank? The waste of money is particularly acute given the policy changes the Minister announced recently in respect of Anglo Irish Bank.

Billions of euro could have been saved and Ireland would not be a nation on the brink of economic disaster if the Government had listened to Fine Gael two years ago or at any time since it was realised that Government decisions were not working and were dragging the country down. However, to listen would have required admitting it was wrong, which this Government never does. Instead, it blames the markets, rating agencies, Opposition and media, all of which are accused, to use the Minister's phrase, of causing "unremitting gloom" and reputational damage to Ireland. What a joke. The Government need not have any fear on that score because that boat has long since sailed. The international media and markets know precisely what is taking place in Ireland and look on mesmerised at the Government's willingness to inflict limitless pain on Irish people to support a policy position on Anglo Irish Bank that the whole world knows is wrong.

Making mistakes is one thing — God knows Government policy on Anglo Irish Bank was a monumental mistake — but not learning from them is unforgivable. Continuing to dig a hole, as the Government has done for the past two years, and ignoring what the entire world and what this side of the House have stated repeatedly is unforgivable folly. Giving total protection to professional investors in a high flying bank such as Anglo Irish Bank was in the past and paying for it out of the pockets of our children and grandchildren has been the deliberate policy of this Government. After 24 months, our banks are still not functioning. We do not know what will be the final cost or whether we will ever get out of the hole the Government has dug for us.

Earlier, the Taoiseach was at pains to explain that the interest on the money borrowed for Anglo Irish Bank was very low — insignificant almost. This borrowing is bleeding the country dry when the money should be spent on capital projects to revitalise the economy and create badly needed jobs. The narrow options available to the Government to introduce any kind of jobs plan was demonstrated yesterday by a jobs plan that consisted solely of setting up another quango. I plead with the Minister to ensure the questions asked in this debate by Deputy Noonan, me and other Members are answered because, as Deputy Noonan pointed out, we are not of a mind to buy a pig in a poke again.

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