James Reilly (Dublin North, Fine Gael) | Oireachtas source

After the catastrophic economic management of the past decade so epitomised by Anglo Irish Bank, there is a long and hard road to travel in our country's journey back to prosperity and full employment. However, the budgetary strategy this Government is pursuing will ensure that our debt levels continue to fall and we are better positioned to withstand any shocks that may occur in Ireland, in Europe or in the global economy. Already the Government has succeeded in almost halving the interest rate on the European loans provided under the bailout programme; in securing agreement to extend the maturity of the European loans; in replacing the promissory notes with very long-dated Government bonds; and in replacing €18 billion of IMF loans with cheaper market-based funding. We pledged to wind down Anglo Irish Bank and Irish Nationwide Building Society in our 2011 manifesto. In government, we are gradually winding them down in the form of IBRC and our broader strategy is to stabilise the banking sector.

The value of the State's investment in AIB, Bank of Ireland and Permanent TSB continues to rise. It is not the State's intention to remain a holder of its banking investments in the long-term. We believe a thriving, competitive banking sector, which is properly regulated - I cannot emphasise the need for proper regulation enough - will produce the best outcomes for consumers and citizens. The Government's exit strategy is about recovering the full cost of the taxpayers' investment in these institutions and using the proceeds to further reduce the debt. The sale of 25% of PTSB further improves this position and we are confident that all the taxpayers' money invested in AIB, Bank of Ireland and Permanent TSB will be fully recovered.

The scale of the economic crisis we have gone through has been unprecedented in Ireland's history. As the Minister, Deputy Noonan, said, we have essentially lost a decade in terms of economic growth and job creation. Difficult decisions have been taken and huge sacrifices have been made by the Irish people but this has not been in vain. We have made real progress. The recovery has begun, it is getting stronger and we are focused on securing the recovery. Some 100,000 new jobs have been created since we took office. We are on course to return to full employment by 2018, having reduced unemployment from over 15% to below 10% in the past four years. This has been possible because the economy has returned to strong growth as a result of the choices made by this Government and the sacrifices of the Irish people.

I welcome the commission to further underscore the transparent and open manner in which this Government operates. I commend the motion to the House.

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