Joe McHugh (Donegal North East, Fine Gael)

I welcome the opportunity to speak in this evening's debate. I wish to put on record an important classification of the issue at hand with respect to the overall transfer of funds within the EU. Currently, a total of €457 billion worth of funds is being lent through the European Central Bank through the inter-European transfer system with respect to national central banks borrowing and lending to one another. It is important to put that into context. Equally, it is more important to put into context that the biggest lender with respect to the transfer system are our friends in Germany through the Bundesbank, to the value of €325.5 billion that is being lent to various countries within the EU. Other countries such as Luxembourg, Holland and Finland are net contributors to the lending system. The list of countries that are borrowing within the euro transfer system include Greece at €87.1 billion, Portugal at €59.9 billion, Spain at €50.9 billion and France at €28.3 billion. The country that is at the top of the pile of net borrowers is Ireland with €146.1 billion borrowed from the European Central Bank through our banks. That is before we even refer to the EU-IMF deal of €67 billion. That is the situation. It is the reality of where we are at as a country and the straitjacket that has been passed to us by the previous Administration.

We must consider the matter in context. Between 2004 and 2010 there was an exponential rise in borrowing by this country, by a factor of seven. Our rate of borrowing continues to rise. We must examine constructively at a European level where we are going. We should bear in mind the recent commentary by Finnish politicians in the context of the formation of a new government there and the stalemate situation that has arisen. We should also bear in mind the comments of the Dutch Minister for Finance on the corporation tax rates in various countries. A circumspect debate is going on at an individual country level which must change. A constructive debate is required at EU level. If the type of borrowing practised by Portugal, Greece, Spain and this country is to continue, it will continue to damage confidence which will have a detrimental effect on the marketplace in terms of our liquidity.

We must look to structural funding in the short to medium term. The new round of structural funding will be of the utmost importance to this country because for every €1 billion worth of investment in capital projects, it will have a knock-on effect in the creation of up to 15,000 jobs. We must examine how we can work with Europe on the significant EU problem that has landed on all our doorsteps in order to try to get us out of the situation.

We should look closely also at what is happening in this country on a cross-Border level. I am aware of the co-operation and synergies that have been created by all parties on both sides of the Border in trying to keep alive capital projects. I will refer to two of them. There has been constant and consistent goodwill and co-operation towards the Altnagelvin project in Derry, the aim of which is to provide a cross-Border radiotherapy facility for the north west. A new government is due to come on-stream in the Northern Assembly in the not-too-distant future. We must also continue the co-operation, goodwill and joined-up thinking with respect to the N2-A5 road network. We must continue the all-party co-operation, communication and synergies with respect to one-to-one projects for both sides of the Border. The message we must deliver to Europe is that if we can co-operate on an all-party, cross-Border level, we must consider similar projects that have been hampered by the austerity measures with which we are faced.

There will be a probable reduction in many of the capital projects that have been on the table. We must look at Europe as a vehicle for new rounds of Structural Funds for tangible capital projects that will get people back working. All Members are singing from the same hymn sheet in that regard. If we get people back working, we will get money back into the Exchequer, we will create revenue and be in a win-win situation. I have a simple message for Europe. If the EU-IMF will not interfere with international projects, such as the Altnagelvin project and the N2-A5 project, which is welcome, we should send the message to Europe that there are other win-win projects which will create employment.

To return to the figures, we owe €146.1 billion, apart from the €67 billion we already owe. One should listen attentively to what people on the street have to say, something the previous Government failed to do during the good times. Under the previous Administration, people on the street were saying quite succinctly that the bubble would burst, the boom could not last, we could not continue to get free money and would face a watershed at some stage. The question now being asked by the man or woman on the street is from where will the jobs come. People are at a loss as to from where the jobs will come. There is no point in politicians articulating just for the sake of it the argument that they can create jobs here or there. We need capital investment. We need help, we need Structural Funds to be spent sensibly and we need co-operation at all levels.

We need to think about procurement and procurement rules. If we lose out on projects as result of the EU tendering system, social benefits will be restricted for many parts of the country. Obviously, we must have guidelines on procurement, but there is no point in ensuring we get Structural Funds in place through the next round of structural funding, if we then lose out on projects. We must ensure there is some sort of social contract in place that will ensure that we can create jobs at local level.

We continue to grapple with the idea of being in Europe and of losing some aspects of our natural resources, such as our fisheries - an issue always on the agenda in my constituency in Donegal. We must listen more to people expressing their sentiments on these matters, particularly the fishermen in Donegal. We had a successive "No" to Lisbon in Donegal, which should not be forgotten. We must ensure our continued participation in Europe is a two-way street and is not just about paying back money which, if the situation continues as it is, we will never be in a position to pay back.

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