Shane Ross (Dublin South, Independent)

I wish to respond the Minister of State's comments. His attempt to wrap those in opposition around him and state we were united in agreement on the bones of the motion was complete and utter nonsense. He said: "They also are agreed, to various degrees, that the State should continue discussions with its international partners on how this can be achieved and in general terms that the State should not act unilaterally in this regard." I reject this assertion. The State should act unilaterally. That is what we are seeking, particularly if it proves necessary and we are pushed in that direction.

There is a gross misunderstanding among those on the Government benches of what is happening in respect of these and other bonds. I accept that I sometimes speak from a different perspective from those on these benches who are opposed to the Government. I do not know what those in government believe was in the minds of those who were buying bonds at 55 cent, 60 cent or 70 cent. However, Deputy Catherine Murphy put her finger on it when she stated the people concerned thought they had won the lottery. The market had clearly indicated that there was no one on God's Earth who would pay 100 cent on the bonds in question, unless, of course, they were mugs. The only mugs who have emerged from this episode of market madness are those in the Government. The Government has actually paid 100 cent on bonds which were purchased at 55 cent.

Because I used to work in the financial world I am familiar with the individuals to whom I refer. They would not have been too worried if the Government had not paid them back. They did not expect to be paid back, which is why the market had priced the bonds in question at the level to which I refer. Those who bought them cannot believe their luck. The Government did not have to pay back the money for these bonds and it would not have suffered any great hit to its credibility if it had burned bondholders who had expected to be burned.

What is the Government doing? It is showing extraordinary deference to the ECB. Like the gladiators in ancient Rome, it is saying to that institution, "Those who are about to die salute you." It is showing deference to the ECB when it does not need to do so and the ECB is responding by kicking it in the teeth.

When commenting on this issue this morning, the Taoiseach made two large mistakes. The first, as Deputy Finian McGrath stated, relates to the fact that the Taoiseach continues to refer to the 1.3% growth rate on which the deal with the troika is based. That is nonsense and the rate in question no longer applies. On that basis, the Taoiseach is going to have difficulty in paying back the money to the troika. The second error he made was when he stated we were not going to write off any of the debt and that we were not looking to do so. The first thing we should be seeking to do is write off some of the debt on all counts.

The Taoiseach was mealy-mouthed and uttered weasel words when he stated the Government was seeking to reduce the cost of the debt. All that would involve is the lowering of interest rates and extending the period for repayment of the debt. The first thing the Government should be seeking to do is not pay back the principal amount.

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