Anne Ferris (Wicklow, Labour) | Oireachtas source

I am pleased to speak on this deal, the effects of which will go some way towards alleviating the damage wrought by the previous Government. The promissory notes were a millstone around the neck of the State. They weighed us down. The deal achieved by the Taoiseach, Tánaiste and Ministers for Finance and Public Expenditure and Reform is hugely significant. I commend their work and the work of departmental officials, ambassadors and diplomats carried out on behalf of the State. The end result has been the lightening of Ireland's overall debt load. While it is not the full answer to our economic difficulties, it is most certainly a vital part of the response.

The promissory notes were a legacy of an incompetent Fianna Fáil Government that could not manage the economy. The bailout given to the banks was wholeheartedly supported by Sinn Féin with Deputy Pearse Doherty saying in the Seanad, of which he was then a Member: "We appreciate the move by the Government today and remind ourselves it is a bail-out by taxpayers for the banks." He also stated in the Seanad:

I intend to support the Bill as my party colleagues did in the Dáil when the vote was taken there in the early hours of this morning. We do this because the Bill is in the national interest.

The Government is cleaning up the mess that was left behind by the previous, economically-illiterate Fianna Fáil Government and its Sinn Féin cheerleaders. It is an understatement to say I am disheartened listening to the bile from certain Members of the Opposition on how the promissory note deal is bad.

The outline of the deal is worth considering in detail so that the benefits can be put forward. I welcome the fact that Anglo Irish Bank and Irish Nationwide are no more. The Anglo name and the names of its senior people have been a bane to Irish society for too many years. The decision to abolish the name and wipe it off the map is significant in itself. The immediate payment of €3.1 billion that was originally due in March 2013 on foot of the promissory note schedule will not now be made. Instead, this and all other scheduled payments have been replaced with a series of long-term Government bonds of an average term of 34 years. This compares with average terms of seven to eight years which had been in place. The transaction is akin to replacing a short-term loan with both interest and capital repayments with a long-term, interest-only mortgage. We have transferred over 40% of legacy banking debt into very long-term debt and reduced significantly the cost of financing it. Our borrowing requirement will be reduced by €20 billion over the next ten years.

The wider beneficial effects of this have already been felt internationally. Yields on Irish bonds have fallen to their lowest level in more than seven years. The ratings agency Standards and Poor revised its outlook on Ireland from negative to stable. Moody's is the only agency which has yet to reassess its outlook. Irish families benefit now and will continue to benefit.

A much less burdensome debt allows for much greater sustainability and our economic sovereignty is further ensured. This deal is hugely significant. It is not, however, the full answer to our economic problems. We do have a way to go. Times are difficult and people are struggling. I am aware of that and I know that more needs to be done but I believe we are on the path to recovery. Every step we take brings us that much closer to economic sovereignty and to ensuring growth in jobs. That is the overriding goal of this Government: a healthy economy that fosters jobs growth. I commend the work that was carried out to achieve this goal but I caution that more needs to be done and we must continue to put the nose to the grindstone.

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