John Paul Phelan (Carlow-Kilkenny, Fine Gael)

I do not agree with the idea that the IMF is essentially here to attack the public sector. If it did not have a presence in this country, we would be paying extortionate amounts to borrow money on the markets. The reality is that if we were not receiving the support of the IMF, the public sector would be decimated. Perhaps Deputy Boyd Barrett can outline his understanding of the nature of banks and financial institutions. I do not think they consist solely of those who run them - chairman and board members, etc. Banks essentially comprise the deposit holders who put money into them, either individually or as part of businesses. It makes no sense to create the notion that if we unilaterally burn bondholders across the board it will have no effect. Numerous media reports in recent months, indeed in recent days, point out that the burning of bondholders would have a very significant effect on credit unions in this country because they are significant investors in banks. The financial institutions of Ireland and the world are intertwined in a very complicated and messy way. It is not as simple as saying that any unilateral decision by the Government would not have a direct effect, in this case on ordinary credit union members throughout the country. For the most part, these are working people who are just trying to put some euros by or get a small loan when they need to get some work done on their house, for their family or in their business.

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