Colm Keaveney (Galway East, Labour)

Both Government parties have made clear that they favour burden sharing with senior bondholders in banks as long as it is part of a European-wide framework for senior debt. The Government has made clear that burden sharing will not apply to banks that will form part of the two new pillars of Irish banking. This makes complete sense. The Government seeks a systemic banking force in Ireland that will be supported to ensure the domestic economy's ability to get through this dark period. Were burden sharing to be introduced, it would only involve banks that were not part of those new pillars, namely, Anglo Irish Bank and Irish Nationwide.

Ireland is not in a position to act unilaterally with regard to the senior bondholders as this would create serious difficulties for the Irish economy in respect of international confidence. One need only consider last weekend's commentary regarding our international competitors and how they view the Irish situation with regard to confidence within the domestic economy. We must try to position the country to be able to attract outside investors to have confidence in this economy and to have the confidence to take risks by creating jobs here. Some commentators argue that Ireland should engage in some form of high-risk game of brinkmanship on the basis that burden sharing with senior bondholders is in the country's immediate interests. That is a highly risky strategy because it would create serious doubts in the minds of those investors who Ireland so desperately needs, including in my constituency.

I would be grateful were the Minister of State, at some point this evening, to expand on the significance of the restructuring approach that ensures there will be €12 billion per annum in lending made available for each of the next three years. In light of the Central Bank's estimation of a requirement of between €11 billion and €16 billion during that period, how will we ensure these moneys will be circulated into the local and national economies to encourage risk-takers in the SME sector to get involved in job creation and to keep the next generation of young people in this country? Iceland faces a greater crisis in respect of emigration, the delivery of public services and job creation.

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