Joan Collins (Dublin South Central, People Before Profit Alliance) | Oireachtas source

The Shatter-gate affair will rumble on for the next number of weeks and months and it looks like the Taoiseach is standing by his man at this stage. Therefore, I wish to raise another serious issue that is happening at the same time. I want to raise concerns regarding reports in the media that pressure is being applied to the Irish Central Bank to quickly off-load, through the private market, the €25 billion in bonds which were exchanged for the promissory note last year. According to the ECB President, Mario Draghi, the bank is reviewing the promissory note deal as part of its annual review of 2013. It seems there is still a question within the ECB regarding the legality of the promissory notes and the subsequent bonds held by the Central Bank. Questions are being raised about whether the deal contravenes Article 123 of the Treaty on the Functioning of the European Union. This article prohibits central banks from giving monetary support to member states. According to unnamed sources in the ECB, as reported in the media, there are concerns within the ECB regarding what it terms "the pace of liquidation", in other words, there is not much the bank can do about the promissory note deal but it is looking for the bonds to be sold off quickly.

Is the Taoiseach concerned that, coming out of the review, major pressure will be exerted on the Government and the Central Bank to sell off these bonds to the private market? There are a number of problems to be posed if the bonds are sold off. It would weaken the negotiating position of future governments to secure a deal on the bank bailout. Like most people, I have given up on any idea that this Government will seriously pursue a write-down of the debt. While the bonds are with the Central Bank, interest payments accrue to the State in the final analysis. However, if they are sold these interest payments go to the market investors.

As the Taoiseach is aware, the legality of the promissory notes and the associated bonds are, as per the Constitution, subject to an appeal by myself, to be heard, hopefully, this summer, in the Supreme Court. Will the Taoiseach give a commitment to resist the pressures to sell off the €25 billion in bonds in the next period?

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