Joan Burton (Dublin West, Labour)

When did the Minister become aware of the potential impact of these promissory notes on the general Government balance? When the Labour Party received its briefing in the Department of Finance, it was perfectly clear that the officials had not worked out what might be the implications of those notes. I have been trying to ascertain the position in this regard - through the tabling of parliamentary questions - since the Minister announced the establishment of the promissory note structure last Easter. Was the Minister aware of what might be the impact of promissory notes or was he unaware of the position in this regard? If he did know of the possible impact, did he simply choose not to inform the Dáil that they could lead to the payment of an additional €1.5 billion per year? At the end of the year there will be some €31 billion outstanding.

The international markets have lost confidence in Ireland because the facts relating to this matter have only just emerged. Promissory notes worth €9 billion are due to be issued before the end of the year. Ireland's bond rates currently stand at more than 8%. This means that the promissory notes to which I refer will be issued at a rate that will be somewhere between 6% and 8%. It is to be hoped that the rate will decrease to some degree. However, if today's rate applies, then the amount in interest we will be obliged to repay will be extremely high. The Minister and his colleagues are leaving an appalling liability in respect of these promissory notes for their successors in government.

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