Brian Hayes (Dublin South West, Fine Gael)

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"recognises that:

— the Government inherited a situation in relation to the banking sector and specifically in relation to Anglo Irish Bank and Irish Nationwide Building Society which resulted directly from the decisions taken by the previous Government;

— decisions taken by the previous Government included the decision to guarantee the debts of the covered institutions and this decision and consequential decisions taken by the previous Government have effectively transferred the liability for private bank debt to the taxpayers of this State and contributed to the need for the EU/IMF bailout; and

— the Irish Bank Resolution Corporation will fulfil its legal obligations to redeem €1.25 billion (gross) in senior unguaranteed bonds;

acknowledges that:

— the Government is working with our partners in the EU and IMF to address the situation and is actively involved in discussions with a view to reducing the overall cost to the State including the cost of the promissory note;

— the Government should not act unilaterally in relation to the repayment of unguaranteed senior debt and should have regard to the views of our partners who are providing the requisite funding for the State and for the financial institutions;

— the implications of not making such payments are such that the State's ability to fund the provision of services, pay wages etc. could be put at risk; and

— the Government must broaden the tax base and that the introduction of the household charge and the proposed introduction of water charges are part of this process;

affirms that the approach being pursued by the Government is, given the situation the Government has been presented with, the optimum approach which will produce the best medium to long-term outcome for the State and the Irish taxpayer; and

encourages the Government to press ahead with discussions and negotiations around a range of support measures that recognise the contribution made by the State in support of the stability of the Eurozone."

During the first years of this century, Ireland lost its way. Many people in positions of responsibility decided to take a walk on the wild side. Reckless borrowing by developers, crazy lending by bankers and lax to non-existent supervision by regulators all contributed to the toxic brew. It was party time. The excesses of the crazy years were celebrated by the media and cheered on by Ministers. When the German Ambassador questioned Irish payscales he was lambasted in the media. When the European Commission raised concerns about Irish Government spending, the former Minister of Finance, Charlie McCreevy, responded in his usual dismissive, know-all way by saying "when we have it, we spend it". As the property bubble accelerated out of control, a crash was inevitable. That crash has caused immense damage to the country and real suffering and hardship to many thousands of people.

After the party came the hangover. This Government was elected with a clear mandate to clear up the mess and progress has been made. The country is no longer in the accident and emergency ward.

See this speech in context