Pearse Doherty (Donegal South West, Sinn Fein)

The Taoiseach claims we must pay our way. Will he acknowledge that today the State will pay out €12 million on unguaranteed and unsecured bonds in Anglo Irish Bank? This is four times the amount needed to halt the cuts in the school transport scheme and would more than cover the deficits in some hospitals in the west. Last week, up to €14 million was paid out in such circumstances while over the next seven months up to €2 billion will be paid out because the Government has not yet moved against these unsecured bonds.

There has been a monumental failure on the Government's part to secure a reduction in the bailout interest rate. In fact, since the Government took office the cost of interest on the European Financial Stabilisation Mechanism, EFSM, portion of the European loan has increased by 1%. On 12 January 2001, the rate stood at 5.425% but by 31 May 2011 it stood at 6.425%. Has this been brought to the attention of our European partners who are profiting to the tune of €10 billion from the 3% surcharge? The Taoiseach claimed the issue of pricing was discussed at the European Council. Was the fact that the interest rate is becoming more unsustainable discussed too?

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