Michael Noonan (Limerick City, Fine Gael)

As the Deputy pointed out, there is an ongoing and far-reaching debate on these issues. However, there is not a consensus, as he suggested. There are different views and the debate continues.

I never said our debt was not sustainable; I said it could become unsustainable, which is a different issue. It could become unsustainable and we must be very careful to ensure it does not become so. There are variations regarding that and one such will be known at the end of the month. When the stress tests on the banks are made public, we will know what level of capitalisation is required for the banks in order that they can continue to trade profitably. However, there are other variables including, obviously, the level of growth one builds into the economic model and the actual level of growth achieved. Therefore, no matter how wise one is, it is not possible to say the debt will be unsustainable next week, next month, next year, or in three years' time. However, the total burden on Ireland at present would leave one to believe there could come a time when it would be unsustainable and we must consider all options to guard against that possibility.

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