Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

We are in the middle of a fast-moving offence this evening with respect to the promissory notes and the ECB. As we await confirmation of the facts in this regard, I take this opportunity speak about an element of our national debt which I believe has not been part of the public debate but should be considered in any deal with the ECB and EU, resulting in fair treatment for Ireland.

In 2010-11, the European Central Bank purchased almost €20 billion of Irish sovereign bonds on the secondary market through the security market programme. At that time, these bonds were trading at well below par. When Ireland redeems and pays out on these bonds the ECB will make a substantial profit. This profit will be shared proportionally among the eurozone nations and Central Banks, according to the ECB capital base, GDP and population. We should seek the return of this profit, which I estimate will be between €3 billion and €5 billion. If the profits amount to €3 billion, Germany will get the greatest share of 19% or €600 million, France will get 14% or €420 million and Ireland will get just over 1% or €30 million. Greece has been given a deal worth more than €7 billion. We should seek a similar deal. There is no reason we should not be treated the same as Greece on this aspect of its debt deal. This is not about asking for a write-down or interest holiday, it is about being given some of the profits on Irish debts, of which each European country will receive a share unless we are treated the same as Greece.

On the motion before the House, it is important to note that the proposers completely ignore the consequences with Ireland will be faced should it go down the path advocated by them. Interest rates could be increased and the European Central Bank could refuse to lend to Irish banks or to accept Irish assets by altering the risk control framework. This Government does not have the luxury afforded to the Technical Group of grandstanding on issues like this. If Ireland were to default they would be complaining about the consequences of doing so.

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