Pearse Doherty (Donegal South West, Sinn Fein)

Today's announcement draws a clear line in the sand and brings to an end the fallacy and pretence that some type of radical or fresh innovative approach would be taken by the Government. It draws a line in the sand with regard to all of the commitments given by Government spokespersons while in opposition and government. Previously Deputy Gilmore, now Minister for Foreign Affairs and Trade, waved the IMF programme and said the Labour Party would not be bound by it, yet today it has been announced that the Government is committed to the EU-IMF programme. On his first day the Taoiseach, buzzing from his election victory, came here and said not one cent extra than what had already been committed would be put into the banks until burden sharing had been achieved. He has repeated that statement on three occasions. Today the Minister for Finance has said there will be no half measures and that if it must be done, it will be done without delay. We heard other Ministers talk about the need for burden sharing by senior bondholders, but there is no mention of this in the announcement. The programme for Government talks about another bank, not one of the two mentioned by the Minister today but the strategic investment bank. The veil has been lifted and the fallacy has been brought to an end. There is little surprise that previous speakers have broadly supported the Minister's strategy because it is a continuation of the reckless strategy of the previous Fianna Fáil-Green Party Government.

The Minister said 30 September 2008 was the worst day in Irish history since the Civil War. It is within his gift to call a ceasefire. It is within his gift to stop this and apply aggressive burden sharing to senior and subordinate bondholders in the banks. However, that is not the gift he has announced today, rather the gift he has announced is that senior bondholders will continue to be paid. The gamblers who gambled recklessly in the banks will be paid by the Government. Is it the Government which will pay? The Minister is making the decision, but it is the taxpayer who is struggling to make ends meet who will have to foot the bill. This is a decision the Minister should not be allowed to take because he has been given the opportunity to make these decisions on false pretences. A commitment was made during the general election which resulted in both parties in government being given a substantial mandate, but that commitment is being reneged on today in the House.

This is the fifth attempt to recapitalise the banks. The four previous ones failed, at a cost of €46 billion. At the end of the process this year approximately €70 billion will have been invested in Irish banks. In 2008 we had the €400 billion guarantee scheme, covering the six main institutions. In 2009 some €11 billion was injected into Anglo Irish Bank. Before October 2010, a further €21.8 billion was put into the main banks and after that date some €13.3 billion was put into them. Today, the Minister has announced a capital requirements of €24 billion. That is a far cry from the statement made on the floor of the House a number of years ago by the previous Minister for Finance, Deputy Brian Lenihan, when he said it would be the cheapest bailout in the world.

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