Joan Collins (Dublin South Central, People Before Profit Alliance) | Oireachtas source

Addressing a recent meeting of the Committee on Finance, Public Expenditure and Reform, the Minister for Finance, Deputy Noonan, said there would be no question of write-offs. He said that longer maturities and low interest were at the core of discussions on the promissory notes. On the issue of money put into the so-called functioning banks, including Bank of Ireland and AIB, the Minister said there would be an examination of the possibility of some of the rescue loans having maturities extended.

It seems to be increasingly obvious that there will be nothing particularly special about the deal for the special case of Ireland promised in June last year, despite the arguments for a very special deal being overwhelming. The economist, Mr. Michael Taft, has undertaken some illuminating number crunching with EUROSTAT statistics on the banking crisis in Europe from 2007 to 2011. The cost to the Irish State, excluding cash from the National Pensions Reserve Fund and the NTMA, was €40.1 billion, just ahead of Germany at €40 billion. However, Ireland has just under 1% of the EU's population and 1.2% of the EU's GDP. That €40.1 billion is 25% of our GDP compared with 1.5% of Germany's GDP. We have paid for 42% of the total bank bailout in the EU. That is €9,000 per head, as opposed to an EU average of €192.

The key question is whether the deal that is being negotiated will change these unbelievable figures. I think the answer is "No" because the Government has not sought to do so. It has tamely accepted the situation by saying we pay our debts and are not seeking a write-down. Ireland was forced into this situation on the ECB's insistence of no burden-sharing for bondholders. The ECB and the European Commission should now be forced into taking their share of the burden. Instead, however, we have a retreat from the promises made in June last year and an increasing inconsistency in the dealings of the troika with different countries.

Last week, there was a leak in the Financial Times of a draft by the European Commission on the ESM and bank bailouts. This ruled out any question of legacy debt being dealt with by the ESM. It went on to say that bank rescues must first rely on private capital, then state funding, and only as a last resort on the ESM. It is only a draft, but taken in conjunction with the Helsinki Three statement, this is a serious retreat from the commitments of the June summit last year.

I also want to raise the inconsistency of the troika in that the insistence of no write-downs or haircuts for bondholders applied to Ireland has not been applied to Greece and is unlikely to be applied to Cyprus. My understanding of the crisis in Cyprus is that it is partly a by-product of the Greek default last year. Cypriot banks were major holders of Greek sovereign debt and took huge losses on these bonds last year. They are now bust, as is the Cypriot Government. The cost of their bank bailout will be between 60% and 100% of their GDP.

It is alleged that a lot of hot money went into Cypriot banks, much of which was from Russia. The IMF is pushing for a haircut not just on bondholders but possibly also depositors. It seems that bailing out Russian oligarchs with taxpayers' money is a step too far, even for the troika. Rather than raise these issues of unfairness and inconsistency, our Government repeats the mantra that we pay our debts, we do not want a write-down, and that if we are given a little break, we will be happy.

I refer to remarks made about the People Before Profit Alliance in this debate. Listening to one or two contributions from the Government side, I was reminded of the old Dublin expression that there is not much point in being an eejit unless one can prove it.

The Greek people are not benefiting from the kindness of the troika. They are being crucified and the country's health service has effectively collapsed. Earlier today, we saw the report of the National Office for Suicide Prevention in Ireland. This referred to alarming and distressing reports that Greece has had one of Europe's highest suicide rate increases since the start of the austerity programme in 2008. Third World conditions are being visited on the people of Greece, but why? It is for an austerity programme that cannot work.

According to the IMF, Greece will not meet the target of debt-to-GDP from the current 170% to 120% by 2020. Its best bet is 135%, which means meeting all fiscal adjustment targets and some growth within that. Even if the 135% level were to be met, which it will not be, there is no question of re-entering the international market for finance. What is being imposed on Greece is not a solution but a social and economic disaster. The People Before Profit Alliance has a responsibility to state clearly what it is and to oppose it. We are proud to do so.

As regards the idiotic remarks made about the former Stalinist regimes in eastern Europe, maybe some Deputies could get someone in their offices to look up the difference between Trotskyism and Stalinism. They should have it explained to them slowly and carefully. If so, the level of debate might rise a little in the Dáil Chamber.

See this speech in context