Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

Cuirim fáilte roimh an díospóireacht seo. Is mór an trua, mar atá ráite ag an chainteoir dheireannach, má ghlacaimid leis an reachtaíocht seo gur seo an díospóireacht dheireannach a bhéas againn ar athraithe ar bith do phacáiste na Gréige, ó thaobh reachtaíocht ag teacht os comhair na dTithe seo de. Rud dona don daonlathas é seo, go háirithe nuair atáimid ag caint ar dhá thír atá i gclár an troika. Tchímid an damáiste atá an clár sin ag déanamh don daonlathas i ngach tír, sa Ghréig agus anseo, agus táimidne ag vótáil le níos mó daonlathais a bhaint de shiúil as an Teach seo mar nach mbeimid ábalta é a phlé, ó thaobh reachtaíochta de.

Once again it is clear we are being asked to rubber-stamp another change to the bailout regime in Greece. Today marks another attempt at resuscitation of a bad policy by tweaking it. The austerity regime being heaped on the Greek people should be allowed to die. When things do not work in politics we should stop doing them. It is important that we are having this debate today after last night's meeting of the Eurogroup and today's meeting of ECOFIN. Last June we were told the Eurogroup had decided to separate banking and sovereign debt. We were told that this week's meeting on Monday would be about finalising the details of how the ESM would capitalise banks and how to deal with legacy debt. However, we find ourselves in the same situation as we were this time last year. They have tweaked our plan when in reality fundamental review is needed. It needs actual progress on recouping the taxpayers' money that was pumped into the pillar banks and a write-down of the Anglo Irish Bank debt which should never have been the people's debt.

What the people have been saying to me and, I am sure, to Government Members, is that they have had enough of the tweaking and spin. Those suffering most from austerity will be no better off tomorrow or even next year as a result of what the Government secured last night or as a result of its spin this morning. In Ireland’s case the need for a change is as clear as day. Austerity has meant a steady decrease in employment, a stagnant economy and forced emigration of its young, amounting to nearly 250,000 people since 2010. In Ireland’s case the troika must stop resisting reality. We need real deals, including a capital write-down on the promissory notes.

It is not enough to shift the burden to another generation by extending the repayment period. A deal on promissory notes must lead to a real reduction on our debt-GDP ratio. More critically - this is the litmus test of any deal - it must shift the burden away from the taxpayers and citizens who did not create the debt. The €28 billion outstanding on the promissory note needs to be paid back to the State. The promissory note should be torn up and should not be paid out. Any deal which does not reflect that is one that will disappoint me and the vast majority of people.

On our legacy debt and the debt we have injected into the pillar banks, €24 million, the remainder of the promissory note, people hope that this week's meetings of the Eurogroup and ECOFIN would bring us closer to the day when working citizens are no longer paying off the bankers' debt. However, based on the announcements last night and today, those hopes seem to have been dashed once again. There appears to be hardening of opinion on just how special Ireland is. The opposition of the triple-A Eurogroup countries to any deal on retrospective debt being recapitalised seems as resolute as ever. The comments this week from the Finnish Prime Minister who said that the old bank debts of Irish banks are, above all, a problem of the Irish Government is a worrying indication that the opposition of Germany, Finland and the Netherlands to a sustainable deal has not budged.

I have made this call numerous times and I repeat it now: the Government needs to up its game. After nearly two years of negotiations on this issue of banking debt, little if anything has been achieved. We have not got back one cent of the €64 billion that was pumped into or committed to the banks. Concrete and beneficial results are overdue. The commitment to consider extending the maturities of our EFSF loans and potentially our EFSM loans if it comes to pass is a small step in the right direction.

However, it is not the crux of what we need. What we need is a genuine resolution and not window dressing or Government spin. As in the case of Greece, the EU is now admitting its plan for Ireland was not good enough. This is a failure not alone of the EU but of those who sit around the table at the Eurogroup and ECOFIN, including our Minister for Finance and other Ministers for Finance across Europe, whose heads were stuck so far into the sands of austerity they could not see the reality that the Greek plan would never work and that the Irish plan too was flawed.

We were told that Ireland is not like Greece, that we would pay our way, meet our targets and would live happily ever after. However, this was never going to happen. This reality has finally been accepted. What we are witnessing is the beginning of a restructuring for Ireland, which is a start. It is long overdue. It is unfortunate this was only extracted after painful years of forcing the plan to work. The Government needs to seize this opportunity and put the ball in the back of the net. It is almost a year since the EU announced the separation of banking and sovereign debt yet the Government still has not run with the ball or been able to deal with this issue effectively. In the intervening period, different countries have started to take a more hard lined position.

We are now entering a critical period. If the Government stands up for Ireland it can achieve a real deal on restructuring that will be immediate and long term. It is naive to believe that the markets will not turn against Ireland if it does not receive a fair hand on the promissory note and the issue of legacy debt because the markets have factored this in. The Government should, as mentioned by the Minister of State in his speech, examine the Greek amendment in detail. Last November, Greece secured two essential things which the Irish Government has to date failed to secure, namely, a reduction in the interest rate and an interest holiday. These are key requirements. Neither seems to be on the table, which is a failure of the Government and its banking strategy.

Despite the assertion of the Minister for Finance last night that billions of euro will be saved, it appears, when one cuts away all of the spin, that during the term of office of this Government - which I expect will run to December 2015 - not a single cent will be saved by the Irish State or taxpayer based on what was announced last night. On waking this morning many people heard the spin that progress had been made on Ireland's debt deal. Listening to the Minister, Deputy Noonan, people would have thought millions of euro would be saved. The only potential for any savings, unless we get an interest holiday or interest reduction, neither of which appear to be on the cards, will be our not having to roll over these debts when they mature. Some of our loans from the EFSF are of 29 years duration. The term of one loan is 25 years and others are for shorter periods. The first time we could potentially save any money, without securing an interest holiday or interest reduction, will be in December 2015.

It is important to be up-front and frank with people. What people want to know when they hear progress has been made on the debt deal is if we will get back the €24 billion paid into the pillar banks or, at least, as much as possible of it. They want to know that when their taxes, including VAT and excise duties, will not end up in Anglo Irish Bank to pay off bankers' debt. They want to know if the impact on them today or next week, in terms of the austerity burden which they have been carrying, will be eased somehow by these pronouncements by our Minister for Finance as he emerges from the Eurogroup meeting. It is clear, when one cuts through all of the bull and studies the detail of what was announced, that without an interest reduction or interest holiday, which I understand are not yet on the table, there will be no savings whatsoever by this State until 2016 at the earliest.

I am on the record as saying last November when the Greek deal was announced that there were parts of the Greek deal which Ireland needed to examine and achieve. I also said that on its own this deal was insufficient as it would not reduce the overall burden of Greece and kept the foot of austerity firmly pressed on the Greek people. I still believe that. The events of this week are indicative of Ireland's failure to grasp the opportunity to, like Greece, secure a reduction in interest rates and an interest holiday. The argument that Ireland is not Greece and should not, therefore, be looking for the same benefits does not hold water. Some Ministers would like the people to believe that if we got the same preferential treatment as Greece, in terms of an interest holiday or interest reduction, we would, when we wake up in the morning, be able to speak Greek, which is not the case. Obviously if we got the same deal as Greece we would not have the debt to GDP ratio - 186% - of Greece but it would benefit us and leave us confident of being able to exit the programme we are in.

Ireland is unique. We expect fair play across Europe. There are positives in this Bill in terms of the interest rate reduction, extension of maturity and the interest holiday, which I welcome. It is clear that this was forced upon European leaders and that this was not done in solidarity to help the Greek people. It is also clear this came about as a result of the potential Greek exit and the realisation that Europe's plan, of which our Minister for Finance was part and which set targets of 120% of debt to GDP, was simply unrealisable, leaving Europe having to stick another plaster on the sore which is the Greek problem. Unfortunately, this will not go far enough and this will be proven correct after the passage of time.

While the extension of the period over which Greece can repay its loans and reduction in the interest rate is a pragmatic step, it is not being taken by choice by the EU or the troika rather, it is being forced upon them. What we should be trying to do is lift the weight of austerity off the Greek working people. Anything that would do so should be commended. What we really need is a reversal of the EU's total reliance on austerity as a solution to the ills whether those ills manifest themselves in Greece, Portugal, Germany or Ireland. Fundamentally, this new agreement is not about helping the Greek people. It is, once more, about protecting the system. It is not worthy of our support because it does not offer solidarity to the people of Greece. It recommits us - this is important - as a contributing country to forcing a bad economic policy on a country whose sovereignty and democratic institutions are not being recognised as they should be.

Let us be clear. What we are being asked to support is no let-up on the cuts being imposed on Greece. Every positive aspect of this deal is conditional on Greece continuing to cut wages and slash services. This is no great gesture of magnanimity or solidarity. It is a pragmatic admission that the programme designed by Europe was unrealistic to begin with. It is a sticking plaster on a gaping wound, and in terms of how it will improve the lives of the unemployed or vulnerable in Greece, it means a slightly less painful experience over a longer period.

We do not have the right to tell Greece that it must cut wages and essential public services. The EU cannot be absolved from responsibility for the Greek crisis. The broad macro-economic policies of the EU and the ECB contributed to the crash in the Greek economy. This is most definitely not a simple case of the EU riding to the rescue.

The man on the streets of Athens or the working family in a rural area are not responsible for the destruction of their country's economy. We must be honest in accepting it is not a purely unselfish act by the EU to include Ireland in committing to Greece. Greece is a part of Europe and it deserves our solidarity not our condescension.

I also note the Bill means no discussion will take place in the House with regard to future legislation if an adjustment to Greece’s programme emerges. This begs the obvious question as to how many more adjustments the EU and troika think will be necessary. They seem to be preparing for the long haul, and they are right because there is no way Greece will be able to meet the targets set for it. It points to a refusal to accept reality for as long as possible, and this has been a trait of Europe. It pretends the problem does not exist, sticks its head in the sand and does as little as possible for as long as possible.

For years, I, Sinn Féin and other commentators have pointed out the obvious, that Greece’s programme set for it by Europe was unsustainable, would not work, was cobbled together in an attempt to shore up market confidence, and has completely failed. The legislation before us is an example of the fact that it has failed time and time again. The adjustments before us today will do to nothing to boost growth or employment in Greece and nobody even claims they will. It is baffling how many times the EU can talk about growth and jobs and then implement policies which kill off any hope of achieving either. Unfortunately, this is the same approach taken by our Government also.

Once more the troika has put its faith in austerity as a policy. On occasion, the IMF has wobbled on this, but when push comes to shove it backs austerity over growth every time. We are now years into the euro crisis and growth and jobs are as elusive as ever. Starting at the top and working at every level on the way down, a change in direction is sorely needed. A change in direction means investment and stimulus at EU level and nationally in member states.

Today's debate has been punctured with figures and references to meeting targets and setting new ones, and it would be easy to forget in all of this that we are speaking about people and their future. Immediately we hold in our power today the ability at least to try to stop potentially another 30 years of austerity being forced onto the Greek nation. A total of 50% of young Greeks are unemployed. The anti-social and arbitrary nature of austerity has led many into the vicious arms of fascism. More generally, as a Parliament elected by the people we have the power to bring about policies which promote growth and job creation at home and, through our Presidency, throughout the EU. Unfortunately, the Government, the troika and its masters shown no interest in taking this route.

Fianna Fáil surrendered our sovereignty and this shame is its to carry. There comes a point when the Government must stand on its own record. To get back to targets, when we will see a target to reduce unemployment and when will we see it reached? When will we see a target set and met to reduce the number of children living in poverty in this country? Are we content that 23% of households are in mortgage distress as we tick the boxes our masters have set for us? Are we happy to rely on immigration and a generation with massive levels of unemployment to pay off the debts of future generations?

I have welcomed some of the positive aspects of the Bill for the people of Greece. However, on balance the deal must be seen as another attempt to force an unsustainable way of dealing with the Greek situation into a box into which it simply will not fit. Reality dictates that Greece needs a write-down on its EU loans like Ireland needs a write-down on its promissory note. Kicking this can down the road serves no purpose and directly leads to the misery of working people. Yesterday's announcement, as I stated earlier, was a small step forward but what we really need is the Government to keep its eye on the big prize. It needs to take the giant leaps forward. The big steps are obvious. We must make a write-down on the promissory note a reality, not a sleight of hand like we had last year. We need to recoup the €24 billion pumped into the pillar banks of AIB and Bank of Ireland. These demands should be put forward not only by Sinn Féin or me; they should be put forward in a forceful way by the Minister for Finance, the Taoiseach and every Minister. They say these are not optional extras but necessities on which the Government must deliver if we are to return to sustainable growth and ease the burden of austerity which is bearing down, and has borne down, so hard on people throughout the State. We should be under no illusion that there are big steps to be taken by the Government. The key question is whether the Government has the ability and willingness to take these steps.

I have said time and again that I wish the Government well in its negotiations in Europe on Ireland's debt. However, I cannot stand here in all honesty and subscribe to the type of spin which comes from the Government as it emerges from European meetings. We need the Government to do the serious job being left to it and deal with the burden passed to it from the previous Government which made those reckless decisions. It is not about extending maturities or saving billions of euro at some time in the future, if these billions even materialise. It is about the here and now, the people up the long lanes, those considering going to Australia, Canada or London, and those who cannot see the light at the end of the tunnel and want a reprieve now. The Government needs to start to demand this. It needs to up its game.

We need a deal on the debt now and not in three years or four years time. People cannot take any more of this. Unfortunately, we need to learn the lessons from Greece with regard to writing down debt. Our country has spiralled in the past. We can look at targets in terms of growth and exports, but I look at real people. I sit in their living rooms and speak to them. I hear what they have to say. As a spokesperson on finance I deal with facts and figures and official reports, but nothing can tell a story better than hearing it - I was going to say "from the horse's mouth" but we have had enough horse jokes in recent times - from the individuals themselves. This country lost its way in the past decade as a result of bad policy, but it has also lost its way in trying to resolve and untangle this.

The Government has made serious mistakes, and some of the mistakes being made now are creating problems for a future generation. It is time to step up to the mark. It is all right to be on the front page of a magazine accepting awards and being able to spin that this is hugely beneficial, but people on the street know how to measure these things and they want to see real progress and not spin.

See this speech in context