Michael Noonan (Limerick East, Fine Gael)

I thank the Minister for his observations. I found the plan very disappointing. I was expecting a magnum opus, but we did not get it. Like many people who have watched the development of this particular crisis through its final stages to the appeal to Europe for bailout funds last Sunday night, I thought there would be a heavy section on bank restructuring in the plan. That was what I looked for first when I received a copy of the plan. However, the plan is silent on banking. There is a reference on page 24 to the strengths of the Irish economy, one of which strengths is claimed to be the ready availability of a good flow of credit. Somebody must have discovered that while on holiday because it is not apparent in this country.

The Minister may say he will deal with the banking crisis or that he will make an announcement on bank restructuring shortly but my primary criticism is that the cost of servicing the bank bailout is not included in the plan. When challenged on this in a television interview, he stated that he was including everything up to 30 September 2010 but I do not know what interest rate will be applied to the bailout funds.

The rumours would suggest that the interest will be unaffordable. Even if we applied a simpler rate based on standard IMF charges of 5%, the cost over two years of the estimated €10 billion needed for recapitalising AIB and Bank of Ireland would be €2 billion. The correction of €15 billion should, therefore, be €17 billion. The failure to include this interest is a serious flaw in a plan that is supposed to inspire confidence across Europe's bond markets. A first year economics student would immediately notice this flaw after a quick read. I cannot understand how the plan could be published on that basis when such a flaw is apparent so quickly.

The plan is disappointing in regard to a growth strategy. The House and the public are familiar by now with Fine Gael's position. It is not enough to commit to fiscal correction. We are committed to the targets published in the plan but we would also pursue a parallel strategy of jobs and growth. The plan, however, contains the Government's usual scissors and paste copies of extracts and concepts it announced many times in the past in Dublin Castle, the media centre or down the road at the convention centre. It proposes the same old platitudes and shibboleths. The smart economy is to be organised by the greatest bunch of dummies who ever sat in Cabinet. They are going to major on bright ideas.

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