Gerry Adams (Louth, Sinn Fein)

Go raibh míle maith agat.

The substance of the Government's approach to the EU summit seems to have been to convince our partners in Europe that we are not Greece. Nuair a bhí an pobal Gréigeach ag léirsiú tamall ó shin, dúirt siad "ní Éireannaigh muidne". Mar sin, tá dhá thaobh den scéal sin. The unfortunate reality is that if the Government continues to follow the failed the policy of austerity, including public service cuts and increased taxes, to pay a debt mountain that nobody believes is tenable, then this State will be where Greece now is in a very short time. The Taoiseach and his colleagues were elected on a completely different mandate, but since the election, they have been implementing a Fianna Fáil manifesto.

Irish bond yields have surpassed 12% this week, which is a record high. Anybody with common sense will know this tells us the market does not believe that the policies pursued by the Government are working, or that Ireland will be able to repay its debt. The Government continues to bury its head in the sand on this issue, refusing to recognise that we cannot borrow our way out of a debt crisis, particularly one of this magnitude. The Government also seems to be oblivious to the social consequences of its policies on Irish citizens, particularly the most vulnerable. It is irresponsible to insist on taking on more debt at oppressive interest rates, while imposing even more austerity policies on citizens. This failure has been compounded by the flippant response of the Minister for Finance that all of these problems can be sorted out if only people would go shopping. This is the same Minister for Finance who recently defended the despicable universal social charge.

Tá muintir an Stáit seo faoi bhrú. Tar éis trí mhí in oifig, níl aon dul chun cinn déanta ag an Rialtas, go háirithe leis an ráta úis a íslú. As far back as 11 March, the Heads of Government decided that the interest rate of the EFSF loan should be lowered to take account of debt sustainability, but apparently not when it comes to this State. At the conclusion of last week's summit, the Government had nothing to show for months of negotiations on this issue. The Government was elected on a promise to reduce the interest on the total bailout loan by 1%. It was claimed that this would save the Irish taxpayer around €400 million. However, the Minister for Finance told Deputy Doherty a different story this month. According to the Minister, this is not the Government's goal. The Government now wants a 0.6% reduction, which is almost half of its promised reduction on any further draw down of EU money, and this would save taxpayers less than €200 million. That is, of course, important, but it is a drop in the ocean when one considers our economic difficulties. The real issue in all of this is not a small reduction, but the fact that our partners in Europe have imposed a 3% handling charge on the €45 billion in loans they are providing. This means that those who claim to be our friends are actually profiting from this calamity to the tune of €10 billion. This is what the Taoiseach should be negotiating, if he will not face up to the absurdity and obscenity of this significant debt.

There can be no shying away from the reality that this State and the people cannot afford the bailout and its punitive interest terms. That is evident every single day and I am sure the Taoiseach sees it as he goes about the country. I see it in my constituency, with more cuts in our health and education systems, more closures of hospital accident and emergency departments, reductions in wages being paid to low and middle income earners and the introduction of stealth taxes. Yet the Taoiseach has agreed to another €3.6 billion of cuts in the next budget. The Taoiseach is committed to lowering tax bands and credits as part of this, to generate general tax increases amounting to €1.5 billion and reductions in spending that includes social expenditure reductions. That is what the Taoiseach has signed up to implement. Yet, the Taoiseach, as well as the Tánaiste, are saying to the citizens that he will not raise taxes or cut social welfare. One cannot have a deal in which the Taoiseach has agreed to generate €1.5 billion by increases in tax and cuts in social welfare and then tell people that he will not do it. What other cuts to public services will he introduce? How many more areas will have to be closed? How many more special needs assistants will lose their jobs? How many children with special needs will lose their lifeline to education, with parents and their children losing their entitlements as citizens? How many children will be walking to school next winter? How many more workers will have their wages sliced, while also having to pay the universal social charge, property tax and a water charge and any other stealth tax that the Government can concoct? The claim that Fine Gael is the party that will not raise taxes or that Labour is the party that will defend workers all ring hollow when set against the reality of the decisions that this Government is taking.

I want to briefly comment on the European Council's about the humanitarian situation in Gaza. I share that concern. I know the Taoiseach has been in Gaza and I welcome the conclusions of the Council which call for a resumption of direct negotiations in the Middle East to provide the only real and realistic chance of improving the situation on the ground and leading to a lasting and comprehensive solution in that part of the world. I have been there a number of times, including a few days in Gaza, and I warmly welcome the unity pact between the Palestinian groups. That needs to be responded to positively and built upon. I want to support the crew of the MV Saoirse, the Irish ship to Gaza which will travel with the international freedom flotilla. I know some of those on board, including members of Sinn Féin, and I wish them all well. I commend all of them on their courage and on standing up for the rights of the people of Gaza to live free of oppression. This second flotilla should be allowed safe travel and the Government should be speaking to the Israeli authorities to ensure that they get it. I further urge the Government to do all in its power to end the siege of Gaza and the suffering of the Palestinian people. It is neither right nor fair that, in an area as close to the county of Louth as makes no difference, people should be kept in an open air prison. The Government should support the unity efforts of all of the Palestinian groups and their demand for the recognition of their statehood, when it comes up in the UN later this year.

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