Michael Noonan (Limerick City, Fine Gael)

The simplest way of looking at unsustainability is the following: if the State were to reach a point whereby we could no longer afford to service our debts, then we would be coming to the point of unsustainability. However, there are many variables that would build up to that and we are a long way from that position. I have great confidence in this economy. In tandem with the jobs budget we discussed that will put growth back into the economy, we can change the profile and the arithmetic. However, we are certainly in a serious situation.

The stress tests will be available at the end of the month. People whose opinion I respect tell me the figure will be more than €10 billion but I cannot give the Deputy a precise figure. The figure of €10 billion is built into the arithmetic and therefore there will be an additional burden put onto the Irish taxpayer. We will look at the situation then but must move in the context of a bailout agreement being in place with the agreement of the IMF, the European Central Bank, the European Commission and the Irish Government. That Government, our predecessor, spoke for the Irish State. Therefore, the contract is not with the Fianna Fáil-Green Party Administration but with the Irish Republic and one must remember that when considering these issues.

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