Arthur Morgan (Louth, Sinn Fein)

They scarcely understand the concept.

There is major concern in respect of something the Minister and the other spokespersons dealt with in the course of their contributions. This is the notion that deposits are safe. I am getting telephone calls from worried constituents asking whether they should move deposits. No, they should not. Deposits are underwritten by the Government, to €100,000, but also by the EU. People should not have concern about deposits. Sums up to €100,000 are completely safe and will remain so. There is no doubt whatsoever about it and it is important that we acknowledge it. The EU and the IMF support will do no good unless we tackle the source of doubt about solvency. This is not what seems to have been discussed in Europe in the past few days. Instead, the idea was mooted that Ireland should tap European funds for the purpose of recapitalising its battered banking sector further. That would be a fatal mistake. It would keep the Irish people indentured to those who recklessly funded their banks for almost a decade. An EU-IMF bailout will not be a bailout for the Irish people. It will not secure social welfare, nurses' wages or the provision of education. It will be money provided for the Government to pursue its current failed banking policy. As the ECB is one of the largest investors in Irish banks, it is obvious this is money being frontloaded to the Irish Government under the pretext of a bailout so the Irish Government can, in turn, give it to the banks which will, in turn, give it to the ECB when it takes it back from the taxpayer. The added dimension is that this bailout will come with terms and conditions that strip future Governments of sovereignty in fiscal decision making matters. A bailout is only needed if the Government proceeds with its failed banking plan as it stands, a complete bailout for bondholders. A large percentage of the bailout costs arise from the decision to honour 100% of senior bondholders debt rather than burning or negotiating with them. I welcome the suggestion, at the very minimum a strong hint, in the Minister's statement that at long last international pressure has grown to buckle Government and bring it to some kind of common sense in terms of negotiation with senior bondholders. It should have happened a long time ago.

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