Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The Minister should provide clarity on this issue as he has not provided any guarantee. People working in IBRC know their employment with the bank is not permanent. Although the bank was in wind-down mode in any case, its staff certainly did not expect to learn tonight that their employment will be formally terminated as of the passage of this legislation. They deserve a better explanation and more reassurance than the Minister has given in respect of that issue.

The Fianna Fáil Party has gone through the Bill in as much detail as possible in the short time available to us. We received a call after 10 p.m. inviting us to attend a technical briefing on the legislation. The context of the Bill was not explained in respect of the promissory note negotiations which are under way and the Minister expects to conclude tomorrow. Having discussed the Bill in as much detail as possible in the time available to us, I am prepared, on behalf of my party, to take in good faith the Minister's reassurance that not passing it tonight would expose IBRC and, by extension, the State to substantial risk. While I am prepared to accept that in good faith and do not have an objection in principle to IBRC being wound up with immediate effect, I want the Minister to reassure me, my colleagues and every Member of the House that the national interest has been fully protected in respect of the decisions we are making tonight. I am not giving the Minister carte blanche in respect of any deal he may or may not announce in the House tomorrow. While I sincerely hope he announces a deal on the promissory note, my party's support for any such deal cannot be taken for granted.

Last June, the Eurogroup reached an agreement that there should be a complete separation of banking debt from the sovereign. Implementing that agreement should be the objective of the State in all our negotiations with the European Central Bank and of all those who have an interest in this matter.

How would it be fair if the total stock of bank-related debt owed by this country was not reduced by 1 cent whereas countries that experienced banking difficulties in future may have all of their capital losses fully replenished by the European Stability Mechanism, ESM? This is what the Eurogroup has decided. Once the new banking union is established, the ESM will have the power to recapitalise banks directly. Why is Ireland not being treated in the same manner? We were the first country to experience this crisis. As the Taoiseach acknowledged, European policy was imposed on this country.

Based on today's leaks, I hope that we will have a long debate on whatever deal may emerge. We want a number of questions answered, for example, whether the total stock of debt changes in any way.

Apparently, the Minister is proposing to convert the promissory note into a permanent form of debt, the strongest possible form, namely, a Government bond, which can never again be restructured. This is Ireland's opportunity to get the best deal that we possibly can, a deal that will result in future budgets being made easier. This is the prize at stake. Many times in the House, I have wished the Minister well in the negotiations. My party meant that sincerely.

I am deeply disappointed by the manner in which this legislation has been introduced tonight. We have no objection to winding up the Irish Bank Resolution Corporation, IBRC, in principle. We want the Minister to reassure us on the issues that I have raised. They are reasonable questions and we deserve and require those reassurances on behalf of the people whom we represent.

Tomorrow is another day. Tomorrow is the day when I hope that the Minister will enter the House with a deal on promissory notes. More than anything, I hope that it will be the right deal. I hope that it is a deal that will set us on a new course. I hope that it is a deal that will help to take the burden of bailing out the banks from the shoulders of the Irish people. I hope that it is a deal that people will feel in their pockets. I hope that it is a deal from which the domestic economy will benefit. I hope that it is a deal that will result in this Government being able to inject far more money into job creation initiatives to erode the unacceptably high level of unemployment being experienced in this country.

I wish that we had more time for this debate. We will engage throughout the time that is left. I look forward to doing so.

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