Tom Fleming (Kerry South, Independent)

Today, €1.25 billion was paid to unnamed and unguaranteed bondholders. This country is being bled dry by Goldman Sachs, Credit Suisse and a conglomeration of hedge funds. Reliable sources indicate these are the principal holders of the bonds. Anglo Irish Bank is likely to end up costing the Irish taxpayer close to €50 billion by 2031, with future related borrowings and interest charges bringing the possible total bill to approximately €85 billion. While Greece and Portugal are negotiating haircuts to their debts of more than 50%, Ireland is held to ransom and obliged to pay bondholders their full capital plus interest, which in some cases is charged at up to 8%.

The taxpayer is being forced to pay through the nose for the reckless behaviour of Mr. FitzPatrick and Mr. Drumm. Between 1978 and 2008 Anglo Irish Bank's loan book grew from IR £1 million to €78 billion. To cover these loans, it bridged the gap by borrowing cheap money on the international markets and issuing bonds. Many huge transactions were not approved by the board of directors and there were ad hoc arrangements whereby massive sums were approved over the telephone. The regulator was gone missing at this stage and good ship Ireland was drifting towards the rocks. This reckless and irrational borrowing by developers was facilitated by irresponsible lending on the part of banks, lending which amounted to acts of criminality.

One of the most worrying aspects of all of this is that these people are still at large, whether abroad or still in this State, and are continuing to trade. By contrast, we saw what happened in the United States where such persons were brought before the courts in a very public manner and the appropriate custodial sentences were handed down. It irritates and disgusts the people that we have not acted in a similar manner to the authorities in America. There is no sign on the horizon that this will happen. Irish people are experiencing unprecedented hardship and the most vulnerable and helpless in society are bearing the brunt of all these wrongs. The most extreme draconian measures are being inflicted on them to address the financial quagmire in which we find ourselves.

No one envies the Minister for Finance, Deputy Noonan, in terms of the dilemma he faces. Despite that the sum of €1.25 million was paid out today, I am sure we are all agreed that he, with the support of Government, should play tough and hard ball in the negotiations on the promissory note of €3.1 billion due to be paid at the end of March. It is hoped the Government will be able to obtain a sizeable write-down in this. If we do not secure a better deal or have our debt repayments spread out over a longer period, this country will remain deflated, with more unemployment, emigration and austerity measures of the type introduced during recent years. If this continues, the backbone of the country will be broken. It is hoped that will not happen.

See this speech in context