Kieran O'Donnell (Limerick East, Fine Gael)

The Leas-Cheann Comhairle might let me know when a minute remains to me. I support this straightforward motion. We are in the midst of the greatest defining moment in the history of this State since the achievement of independence. A sense of urgency is needed and Fine Gael has proposed that the Government would bring in the budget with immediate effect and would facilitate the passage of all the legislative measures, namely, the social welfare and finance Bills, through the House before the end of December. That would allow the people to have their say in a general election. Before it resumed its consideration of this motion, the Dáil heard statements on the 40-page IMF plan. The representatives of the Irish people in this House did not get to vote on the plan, however, which is anti-democratic. A proper debate, involving a vote where Deputies troop through the lobbies to state how they view this plan, should have been allowed to take place.

We cannot afford the 5.8% interest rate that has been agreed by the Government under this plan. The growth rates projected will not give us the capacity to make such repayments. In the first six months of this year, a growth rate of 0.1% was achieved after cuts of €4 billion had been imposed. The Department of Finance has projected that a growth rate of 1.75% will be achieved in 2011, despite the fact that cuts of €6 billion are planned. It does not add up. The European Commission has said the rate will be 0.9%, which is half that predicted by the Government.

I noted with interest reports in the media today suggesting the European Central Bank may engage in quantitative easing, in terms of purchasing government bonds throughout Europe. It would certainly have the benefit of bringing down the bond yields. It would probably inflate the debt as well. When the Minister replies in the House tonight, I would like him to indicate whether he believes the ECB will engage in this policy. The rate the Government has negotiated with the ECB and the IMF on behalf of this country is not sustainable, based on our growth rates. As a simple rule of thumb, the growth rate added to the rate of inflation must be greater than the cost of borrowing. That is not the case in this instance, as we are well below that figure.

Earlier in this debate, Deputy O'Rourke raised the issue of how we should deal with bond holders. Governments have to make judgment calls and decisions. Unfortunately, most of the decisions made by this Government, particularly during the banking crisis, have been disastrous. We have ended up with the kind of rule book that would have to be adhered to by a schoolboy looking for his pocket money. If we do not deal with all of these issues, we will not get the money. The weekly reporting requirements are extremely onerous. What level of flexibility does this plan provide to the incoming Government?

I will return to the original question of the banks. The Central Bank published a report today that suggests bankers are paid too much and the system has not been reformed. Not one banker has been brought to court or to proper justice. We have yet to see credit flowing to the real economy. This motion demands that the Government should show urgency by working with the Opposition to bring the budget and the finance and social welfare Bills forward. If the Members of the House can discuss these matters, the people will be able to see democracy at work. We could have the proper election we need in the new year and allow the people to have their say.

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