Finian McGrath (Dublin North Central, Independent)

In May 2010 the euro area members states agreed to create a European Financial Stability Facility, EFSF, to financially support the euro area member states that were in difficulties caused by the exceptional circumstances beyond their control. The EFSF was incorporated on 7 June 2010 for the purpose of providing stability and support to the euro area member states in the form of guaranteed loans of up to €440 billion within a limited period of time. To ensure a AAA rating, which provides access to low cost funds, the EFSF adopted complex structures involving over-guarantee of lending and credit enhancement measures such as cash buffers and prepaid margins on loans. These measures reduced its effective lending capacity to some €250 billion and also increased the effective cost of borrowing for borrowers.

Under the EU-IMF financial assistance programme agreed on 28 November 2010, Ireland has accessed a loan from the EFSF of €4.2 billion, maturing in July 2016. The amount available to Ireland from the EFSF under the programme is €17.7 billion. That is what is at the heart of the legislation. This is what we are talking about.

We also need to change our mindset in the House and in the country with regard to dealing with proposals for solving our economic crisis. It is important we do not dismiss those who say we should look at the taxation issue. We should not walk away from the T word as we debate ways of getting out of our current situation.

I wonder if the Minister and other Deputies are following the debate in the United States where a multi-billionaire, Warren Buffett, says the mega-rich should pay more tax. This idea should be taken up in Ireland. This wealthy billionaire is advocating a policy of taxing the rich rather than lower and middle income people. Ever since the Thatcher and Reagan era of the 1980s, there has been a steady transfer of wealth to the very rich, which has accelerated in recent years as hard-working people have taken the cuts in income to bail out super wealthy bankers. Not only is this socially unjust, it is also economic insanity. Those on low and middle incomes reinvest practically all their money in their local economies, keeping more people in work. On the other hand, the mega-rich hoard much of their wealth, buy gold and silver and high end luxury imports or speculate on money markets, which is causing so much turmoil in the European Union. All of this generates fewer jobs. If money is given to lower and middle income people, they will spend it in their localities and employment will be created.

I say to Deputy Durkan and the Minister that it is time the Government stopped implementing the failed policies of the past ten years-----

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