Billy Kelleher (Cork North Central, Fianna Fail)

Even the Taoiseach, as late as two weeks ago, was still of the view that if he could cuddle up next to Chancellor Merkel that he still might get some burden sharing. We now know that was dishonest at the very least in the context of the campaign prior to the election by Fine Gael and Labour. They knew full well then that there was no chance of our still receiving liquidity from the Central Bank and at the same time burning bondholders. It is simply something that was not countenanced by the ECB. Quite clearly, the Minister for Finance has been told that to enact the policies that were being pursued prior to the general election.

On the issue of mortgages and the challenges facing mortgage holders, we all know there is a sovereign crisis, a banking crisis and an individual debt crisis. This will be a real challenge in the context of the years ahead as the ECB begins to ramp up interest rates. Something that all political parties in this House will have to come to some arrangement on is how we deal with the issue of impairment of mortgage loans. That is the real collateral damage out of this issue of banks lending recklessly in recent years. That is one area on which there must be considerable debate. At present the only thing saving many people from further default is that interest rates are so low, but that is not sustainable in the medium term. There will be an increase in the ECB rate.

The other issue about which I was disappointed and which we need to discuss further is the establishment of a strategic investment bank. I have read through the legislative programme for the summer session 2011 and I cannot find it listed. It includes a betting tax measure, a Central Bank supervision enforcement Bill, a finance Bill, a fiscal responsibility Bill, a Ministers and secretaries (amendment) Bill and a public service pensions Bill but is there a vehicle for the establishment of a strategic investment bank?

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