Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on the motion. It has been widely acknowledged that last Thursday's deal between the Government and the ECB represents a hugely significant step forward in our economic recovery. The elimination of the promissory note arrangement is a major boost to Ireland's economic future and will have a positive impact on our long-term economic sustainability and our prospects for growth and job creation. As part of the deal agreed by the previous Government, Ireland was committed to pay €3.1 billion per year as part of the promissory note agreement in regard to Anglo Irish Bank. This was crippling our finances and the country could not continue to operate under the stress and duress of the ten-year promissory note deal that the Brian Cowen Government negotiated.

Over the weekend, a number of people approached me and asked me to explain what exactly the deal meant. My response to them was to say that, essentially, we have got rid of the short-term loan, which was eight years, and transferred it onto a loan on which we pay interest only until 2038 and, after that, repayments are on a phased basis until 2053. In other words, the repayment is reduced and our cashflow is improved. As somebody who worked in financial services for many years, that is exactly what I would have done to help a customer who could not meet their financial commitments and who wanted to honour their commitment and maintain their credibility so they could borrow in the future. As a result of this deal, we will no longer have to borrow €3.1 billion each March to meet the promissory note repayments. This means we will have to borrow €20 billion less over the next ten years.

There has been much talk about what this deal means for the man on the street. Obviously, what the ordinary family wants to know is whether they will see the results of the deal reflected in their pockets. Unfortunately, the reality is that, as a nation, we are still spending more than we are taking in, so the fact remains that further savings must be found. What this deal does mean, however, is that the Exchequer deficit will be reduced by €1 billion. This means there will be €1 billion less in spending cuts and tax increases to be found, which is a very significant amount.

It is also disappointing that some Members of the Opposition have not recognised the huge importance of this deal for our country. Although, for some, I suspect it could be a case that they absolutely understand this is the best deal Ireland could have got, it is simply not within their comprehension to give credit where it is due. Instead, they will continue their policy of pervasive negativity. Fortunately, on this occasion, I do not believe this is a policy that will serve them well. The vast majority of economic analysts have acknowledged this is a good deal. This has been reflected by the fall in our costs of borrowing, and the recent decision by Standard and Poor's to upgrade its outlook on the Irish economy from negative to stable is a further positive development and is proof of the renewed credibility which Ireland now enjoys internationally.

It is important to remember that when the Government entered office in March 2011, our country's reputation was on the floor. Ireland was being spoken of in the same terms as Greece. Attempting to negotiate a new deal at that time was the equivalent of trying to drive a car with two hands tied behind our back. Any bank manager will say that if somebody is seeking to re-finance a loan, the first thing to look at is what attempts they have made to make their repayments. What the bank manager wants to see is a willingness and an effort from the person in question to sort their finances out. As the saying goes, you can only help somebody who is willing to help themselves. So it is with Ireland.

Our international partners now recognise the serious effort that is being put into restoring our economic fortunes. They are cognisant of the enormous sacrifices and solidarity that the Irish people have shown to date in helping to get our country back on track. This deal is a culmination of those efforts.

The benefits of our enhanced standing in Europe were also to be seen at last week's EU budget agreement. As a Deputy from the constituency of Cavan-Monaghan, I know there were huge concerns among farmers about the possibility of savage cuts to direct payments. It is absolutely crucial that the direct payments have been protected. This funding is a vital support for farm incomes and as we all know, farmers spend locally so it also delivers wider benefits for the rural economy.

These were very difficult negotiations. There were major threats to Irish payments with some countries calling for a cut to the overall CAP budget of over 30% which would have had a devastating impact on farmers. In that context, I believe this agreement represents a good deal for Irish farmers. It guarantees funding of over €1.5 billion per year for Ireland from the CAP and while this is down slightly from previous years, it is not nearly as bad as some had feared.

The past week has been a good week for Ireland and I pay tribute to the monumental efforts of the Minister for Finance; the Minister for Agriculture, Food and the Marine; and the Taoiseach who have been working tirelessly to ensure a positive outcome to these negotiations for Ireland and I believe they deserve enormous credit for what has been achieved.

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