Séamus Healy (Tipperary South, Workers and Unemployed Action Group)

I support the motion in the name of the Technical Group and the amendment in the name of United Left Alliance Deputies. In the meetings over the coming days, Ireland's interests must come first and we must resist all attempts to force us into a fiscal union. I make no apologies to Deputy White or any other member of the Labour Party for making that comment. We cannot be dictated to anymore by the markets and we must not be dictated to by Merkel and Sarkozy, the Governments of Germany and France and the EU Commission. We must ensure there is no talk of burden sharing. It is not our burden. Even the Taoiseach told us in his address to the nation that it was not our fault but, of course, he wants us to pay for it. The EU must be told very clearly that we will not pay the private debts of bankers, speculators and bondholders.

We must tell the EU that bank debt must be cancelled because it is crucifying Irish people and will continue to do so if we do not stop this situation. Our corporate tax rate must be protected and the jobs of the people in those industries must be protected. The suggestion that the EU is like the good samaritan helping out a neighbour is way off the mark, as I said before. Reckless lending by European banks, in particular German and French banks, to Irish banks, which recklessly lent to developers, speculators and bondholders, has created this position and now ordinary Irish people, middle and low income earners and poor people, are being made to pay for a recession which they had no hand, act or part in creating. The Taoiseach must put a stop to that at these meetings.

The burden of debt is completely unsustainable. The single biggest rise in Government spending from 2008 to 2010 was an increase from €2 billion to €4.9 billion in debt interest payments. This figure will rise further to €6.8 billion in 2012 and to approximately €10 billion in succeeding years.

This increase is due to borrowing to bail out and recapitalise the banks and to fund the continuing fiscal deficit. Money borrowed to cover the debts of private banks should not be paid. A considerable portion of the debt payment arises from this source and is interest alone. Additional capital repayments will make debt servicing a crushing burden for Ireland for decades to come.

Regarding the promissory note, liabilities undertaken by the State in connection with Anglo Irish Bank and the Irish Nationwide Building Society, INBS, TASC, the progressive research group, stated in its budget 2012 proposals:

If we assume a fairly benign 4.7 % interest rate on Government borrowings after the country has exited the external financial assistance programme, we can estimate that the total cost of these notes between 2011 and 2031, including the interest cost on borrowings, will be 85 Billion. Under this scenario, the annual cost would peak at over 5.3 billion in 2023, and there will be continuing debt interest costs on payments beyond 2031.

This is horrendous and excludes the effect of servicing debt arising from the bailout of AIB and Bank of Ireland. TASC is assuming that the Government will be able to sell bonds at 4.7% after 2015. This is optimistic to say the least, particularly in the context of growing turmoil in the eurozone and in the world generally.

The State has undertaken €279 billion in bank-related liabilities. Were any substantial amount of this called in, the situation would go from horrendous to catastrophic. Not only is it unfair to make the citizens pay debts they never incurred, but it is unsustainable and will continue to cost jobs and fuel emigration. If our debt burden is not relieved, it will continue to destroy the economy, families and jobs.

The main promise made by the Government parties during the election was to reduce the high level of unemployment and to create hundreds of thousands of jobs. This week's budget will remove 20,000 jobs from the economy. In the February-July period, an additional 4,500 jobs were lost. This takes no account of the many people who have emigrated in the same period. An entire generation of people is being consigned to misery. Ireland must stop paying bank-related debts and the interest thereon. Otherwise, there will be no growth in the economy and more jobs will be eliminated. The budget will destroy a further 20,000 jobs, in that approximately 10,000 will be eliminated with the reduction of €750 million in the capital programme and 6,000 public service jobs will be removed. The €3.8 billion to be taken out of the economy will come out of the pockets of people who spend all their income. All of this derives from our acceptance that bank-related debt must be paid. If we do not stop paying those debts, our people and country will be ruined.

At a time when 450,000 people are unemployed and shops on every street in towns, villages and cities are closing, understanding how any government would increase the VAT rate and take €3.8 billion out of the economy is difficult. The budget proposals will create additional unemployment and lead to further closures, particularly of small businesses where employers are hanging on by their fingernails.

Arising from our financial difficulties and private and banking debt, a significant investment strike is under way and has already accounted for a reduction of €30 billion. Paying such a high level of debt is detrimental to the country and families. I support the ULA Deputies' amendment to the motion.

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