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

I thank the Minister of State, Deputy Brian Hayes, for taking the debate. The Minister of State may know that I have been raising this issue for some time through parliamentary questions and questions to the NTMA and the Governor of the Central Bank. It is a very important issue.

In 2010 and 2011, the European Central Bank, ECB, and national central banks purchased almost €20 billion of Irish sovereign bonds in the secondary market through the secured market programme. At that time, the bonds were trading well below par. When Ireland redeems and pays out on the bonds as they fall due, the ECB will make substantial profits on the capital portion and further profits on the interest or coupon we pay out each year. Currently, profits are shared out proportionately among eurozone national central banks according to their share of the ECB capital base or on the basis of GDP and population. We should seek the return of these profits, which I estimate at between €3 billion and €5 billion. Those figures have not been contradicted by the Central Bank or the NTMA. Of that €3 billion, Germany would get the greatest share, equal to 19% of the total, or €600 million; France would get 14%, or €420 million; and Ireland would make a profit on its own bonds equivalent to 1% of the total, or €30 million.

Greece has been given a deal worth more than €7 billion and we should seek the same. Just last week, the ECB released the figures on its SMP holdings showing that €14.2 billion is currently held. The figure excludes the holdings of other national and central banks on our bonds. I ask the Minister of State to look at this as part of the strategic and tactical negotiations on reducing our national debt. The Minister should start to negotiate this reduction.

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