Michael Noonan (Limerick East, Fine Gael)

If, for example, a hedge fund buys Irish unguaranteed bank debt at 80 cent in the euro, it stands to make 25% on its investment if Ireland continues to guarantee to redeem the debt at par. The position has now become indefensible that the Irish taxpayer, even the poorest taxpayers, should be required to underpin the speculation of hedge fund investors.

There must be transparent, open, negotiated burden sharing of bank debt. It must deal with both subordinate debt and non-guaranteed senior debt. If one wants to find the origin of the phrase "burden sharing", it was Mr. John-Claude Trichet who first used it as chairman of the Paris Club, which was the first international institution involved in the discounting of debt.

If the EU finds this approach unacceptable for fear of a knock-on effect in Europe and if the Irish taxpayer is expected to underpin the banking system in other member states, then where is the quid pro quo? Where was it in the negotiations? The Icelandic Government has negotiated 15 year money at 3.2% from the UK and Dutch Governments for its bank bailout. Ireland is being charged 5.8% and at least one tranche of EU funding has a built-in profit margin of 2.9%.

This is not solidarity or in accordance with the spirit of Article 122 of the treaty. The Government's negotiations have led to a very bad result and deal. The deal needs to be re-negotiated and Fine Gael, in the election, will look for a mandate to do so.

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