Tom Fleming (Kerry South, Independent) | Oireachtas source

The deal on the promissory notes gives Ireland some restricted breathing space for economic growth. However, it still leaves the country with a mountain to climb. The reality is we will not begin to pay off the principal on the new bonds until 2038. We will continue to make the payments until 2053, thereby burdening future generations for years to come. The promissory notes payments, when taken with interest payments, will come to approximately €48 billion, which is a stupendous amount and it does not get us off the hook as we still have a colossal debt. To put it into context, our total national debt is approximately €190 billion.

The decision to provide a blanket guarantee was a grave error. Essentially an open cheque was given to the banks and the foreign bondholders on behalf of our citizens. If we had a rational and ethical national political system, we would have negotiated with the bondholders on the basis of our ability to pay some percentage of the value of subordinated and senior bonds. Many of the shareholders at that particular time were elderly people, pensioners by and large, who had invested small amounts to cover their expenses in their old age and have a bit of a nest egg. The value of their shares was practically wiped out overnight.

As a result of the guarantee, the State was shut out of the bond market, investors lost confidence in our ability to repay our debts and we were charged exorbitant interest rates. Because of the variable interest rates applied, we do not know what will happen ultimately. If the interest rates rise, we will be screwed, to put it mildly. We are well aware that there have been large periods in history when inflation was close to zero. We are very dependent, therefore, on inflation rates rising in the next 40 years to assist us in wiping out the capital sum we eventually have to pay. The theory that has been put to us is based on voodoo economics. It is a case of live horse and get grass.

In the current situation it is very clear that austerity budgets are here to stay for some time. In late 2012, Ms Christine Lagarde and the IMF concluded it might have got its basic economics wrong. It also conceded that not alone does austerity not work, but also that it is counterproductive. Ms Lagarde realised at the time that IMF's economic model was wrong which implies that the fiscal compact to which we had signed up at that time would eventually destroy the European economy. The European Central Bank and the EU have not acknowledged the flawed monetary and banking systems that made billions of euro available. The ECB's decision to allow the Central Bank of Ireland to print €30.6 billion to give to the zombie banks was disastrous. This continuation of printing money in a borrowed situation for billions of euro just to destroy the money again is certainly immoral, unethical and irresponsible. I support the motion that these payments should cease immediately.

I commend members of the Ballyhea community for their perseverance and dedication both here at home and in Europe, which has achieved a colossal amount. I also commend the other groups present, including those from Killarney and Tralee - closer to home for me - on their dedication in giving up their time voluntarily to highlight this issue.

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