Michael Colreavy (Sligo-North Leitrim, Sinn Fein) | Oireachtas source

Last week was a very dark one for democracy in Ireland. Copying the tactics of the former Government, the current Government rushed through a very serious Bill in the middle of the night. All the great novels, plays and films show that crime is always committed under cover of darkness. Last week, under cover of darkness, the Government pushed through legislation that will tie our children and grandchildren to an unjust burden of debt. While I welcome the opportunity to speak now on the promissory note deal, it does not make up for my being denied my right as a parliamentarian representing the people to scrutinise a Bill properly before voting on it last Wednesday. The events of last Wednesday did not represent democracy in action.

Last Wednesday, the people were left in the dark. While the political commentators implied that the legislation was of the highest importance, the citizens were left in the dark. The majority of Deputies and Senators in the building had very little idea as to what was really happening. We were not afforded the time required to deal with an issue of such importance.

Consider the staff of the Irish Banking Resolution Corporation. In the space of a few short hours, they discovered not only that their jobs were gone but that many of their redundancy rights were gone also.

I never had deposits in or loans from Anglo Irish Bank; nor did my wife, children or grandchildren. Perhaps some Members of the Dáil, or perhaps even members of the Government, had loans from or deposits in Anglo Irish Bank. I do not know, but I would like to know, and I am sure the people of the nation would like to know also. The fact is that the vast majority of people had no loans from or deposits in Anglo Irish Bank. They had no benefit from the bank. Despite this, they must make repayments to save this corrupt and rotten bank.

This is the crux of the argument. The people of Ireland should not have to pay a cent of the debts of Anglo Irish Bank. The Government should have entered negotiations with the ECB seeking a write down of that debt. When the Acting Chairman, Deputy Bernard Durkan, spoke on this motion he asked where people got the fanciful idea that there could possibly be a write down of the debt. People first heard this from the parties that are now in government, prior to the election. They were told that not one red cent more would go into it while the Labour Party spoke about "Labour's way or Frankfurt's way". However, that was a pre-election promise and, as we know from the comments of a senior Cabinet Minister, pre-election promises do not count.

Members on the Government benches may laugh and roll their eyes at the proposition that it is worthy to seek a write down of this debt. Perhaps that laughter is due to the Government recognising its own failings. Both parties in government received a mandate from the public to form a government as a result of stating that they were against the banking debt that Fianna Fáil had loaded onto the people. That is why their Members were elected and put on the Government benches. People believed what the parties told them. I do not know whether it was mass hypnotism, but the Government has now converted what was a loose deal in the form of promissory notes into sovereign debt. It has practically doubled the cost of bailing out Anglo Irish Bank and has saddled future generations with today's debt. It might be a stab in the dark, but I believe that is Frankfurt's way, not Labour's way.

It was unfair when the last Government initially committed taxpayers to bailing out private debt and it is just as unfair when this Government asks them now to do so. The initiative won when other countries, especially Spain, pushed the Eurogroup to commit to separating banking and sovereign debt has been well and truly squandered. That pressure should have been maintained. Throughout Europe I expect to see an acceptance that there must be a separation of banking and sovereign debt, but it will be too late for the taxpayers of this country.

Some speakers on the Government side have compared this deal to extending the term of a mortgage. If one extends one's mortgage repayments over a longer period of time, it can be a good option even if one will end up paying more for one's house. It depends on circumstances. However, there is a fundamental difference between a mortgage and the deal this Government made with the ECB. After the mortgage is repaid, one is left with a house, an asset one can keep. After this private banking debt has been paid by the people of Ireland, however, they will be left with nothing. It is a wonder this Government with its neoliberal ideology is so keen to pump money into a black hole, yet resists investing in State assets that could provide employment and wealth for the State. In short, the deal can be summed up as the winding down of a toxic bank but not a winding down of the toxic debt. It is akin to pulling up the floor boards of a house because there is a leak beneath but not fixing the leak after doing so.

However, we have gone a step further. We have practically doubled the cost of bailing out Anglo Irish Bank. In addition, by forcing the Central Bank to sell the bonds on the market, the interest payable will not make its way back to the State's coffers. This will generate additional costs, which must also be taken into account. Making the bonds marketable is the price of covering the ECB legally, but even now we cannot put a price on that.

We must pay an incalculable total in interest and capital for the next 40 years, yet the Government celebrates this as a wonderful deal. The spinning is happening, but behind the public relations and spin I believe we have a Government that is very uncertain about what will happen. The Government kept the electorate and the Members of the Dáil and Seanad in the dark last Wednesday week as to what will happen, but perhaps that was not a deliberate strategy on its part. Perhaps it is because the Government does not know what is happening or what will happen. Last week was a little reminiscent of what happened to another ill-fated head of government. When Neville Chamberlain arrived back in Britain in September 1938 he waved the deal he had with Germany, saying he believed it meant "peace in our time". Within a year Britain was at war with Germany. I sincerely hope that the deal the Taoiseach and the Minister for Finance brought to this House is not like Mr. Chamberlain's and that we do not find ourselves in a significantly worse situation in a very short time. However, when the spinning in done and reality bites, the people of Ireland will soon clearly see how ill-judged this deal was.

I said last week was a bad one for democracy and I believe that to be true. However, one very good aspect of democracy is that people will ultimately have the opportunity to give their opinion on this deal, a deal I believe will damage this country for decades. The people will give their verdict, and the sooner that day comes the better for the people and for the country.

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