Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

That is correct, a Cheann Comhairle. You might indicate when I have one minute remaining.

On the day we passed the most recent troika review it is fitting that we examine the review in terms of the economy. In the short time available to me I will touch on a few key themes. I hear a great deal of sound and fury from the Opposition but in many cases we are on common ground. We want to look after the vulnerable, but we are challenged with the task of ensuring that we have the resources in place over a sustained period to enable us do that. Government must make difficult decisions. If we reflect on the past two years, our economy is in a much different place now than then. We were looking over the precipice when we came into office in February 2011. We have pulled back from that. Ireland Inc. is on a sound financial footing. We want it to be sustainable and for growth to take off. That requires other elements such as bringing down our level of overall debt as an economy. It requires the level of debt in the banks and the level of personal debt to be addressed equally.

We have seen the multinational sector do well. Jobs are being created, particularly in my constituency in Limerick where nearly 1,000 foreign direct investment jobs have been created since February 2011. That is to be welcomed. We have restored confidence in the public image of Ireland abroad, which is extremely important, first with the Taoiseach appearing on the cover of Time and second him being honoured by a German business association. These things matter because we are a small, open economy. We are export driven. Our foreign direct investment sector is extremely important but of equal importance is our small and medium enterprise sector in which over 600,000 or 700,000 are employed by up to 200,000 employers, many of those in the export sector. We are looking to export into markets and it is extremely important that our public image is restored.

In terms of the challenges we face in the coming period, the first is the need to regain our full economic sovereignty and exit the bailout programme. Second, we must restore a higher level of consumer spending. Consumers are not spending to the level we need as an economy to achieve growth. A significant section of our GDP comes from consumer spending. Third, unemployment is the most serious issue for this country, and it is not a complicated issue. If someone is taken off the live register there is a saving to the State of approximately €20,000 made up of savings on social welfare and the contributions in terms of income tax. That is often overlooked. It is clear that is the next major challenge.

Another key element would be that credit becomes available in the banks. The banks are not lending at the required level. They have their part to play. I want to send them a message in that regard. People say banks will be banks. I do not accept that. The Minister, Deputy Ruairí Quinn, made reference to that earlier. We live in a different age. The banks cannot do what they did in terms of the DIRT inquiry and what they did successively in the 1970s with farmers. They cannot go back to the way it was previously. They must play their part. Taxpayers' money has gone into them and they need to show cause.

I will make two points on the bank debt deal. First, on the promissory note, the late Brian Lenihan stood up in this House as Minister for Finance and said that Anglo Irish Bank will have a residual value at the end of its life. That residual value must be factored in to the current value of the promissory note and bring down its value, so to speak. That is a key. It should be extended over a long period because that will lighten the load.

Second, they speak about legacy debt in Europe. Ireland had a special case. No bank was allowed to fail in Europe because of the overall situation and many bondholders were repaid in Europe out of Irish banks. They need to examine the long-term economic value of banks into the future and factor that in. Ultimately, what is good for Europe is good for Ireland and what is good for Ireland is good for Europe. We have a very good relationship with Germany and other countries but we need to see them walking the same road and giving Ireland a break.

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