Billy Kelleher (Cork North Central, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak on the motion. It is a timely one as it highlights certain issues that this House has failed to address in recent months. These issues are infrastructure, capital investment and the review of the national development or capital plan which is taking place. Reference has been made to the need for further capital investment in the economy to ensure that it can move ahead in a seamless manner, unlike the current situation of bottleneck after bottleneck, in the area of investment in human capital as well as in the context of transport. There are huge challenges in our universities and educational systems. Beyond the area of transport, there is a huge deficit in investment in certain key areas of the economy. Roads, capital development, infrastructure and transport are all a means to an end which is to ensure that the economy can sustain employment, productivity and competitiveness and continue that seamless investment in people.

In that context and in respect of the sale of part of AIB, we must acknowledge that AIB exists by grace of the taxpayer and the Irish people who stood by it in the most extraordinary of times. It would be a non-entity if it were not for the huge investment in the bank by the Irish people. There was not only an investment, but also a guarantee. For that reason, an exception should be made in order to invest whatever is achieved from the IPO back into the Irish economy.

I accept that the fiscal rules are there for good reasons such as to ensure that states do not go rogue and play with currency thus undermining the credibility of the currency across the European Union and to ensure fiscal responsibility in member states. There are two ways to reduce debt. We could consistently keep paying down debt but growth in the economy would also reduce that ratio. When a level of 75 % or 80 % is reached, investment is needed. When there is a growing economy and bottleneck after bottleneck not only in the investment side or in the capital infrastructure side but also on the human side, there is a requirement to use that in a meaningful way. We are not proposing that there should be a breach of the fiscal rules, rather that this is a once-off receipt that will accrue to the Irish people and could be put into a very productive investment programme if we approach this cleverly. It is important that Ministers raise with the European Commission and Jean-Claude Juncker that this is an exceptional once-off circumstance and that it should be put to a use that benefits the Irish economy now and into the future.

Now is the time for investment. As Deputy Howlin outlined, overall capital investment is less than 2 % of GDP. That is not sufficient to maintain and expand the economy. As has been highlighted, there are huge continuing bottlenecks. These include housing, education, infrastructure such as roads and transport, broadband and the move to a clean energy environment. These are all critically important. The Minister for Finance, Deputy Noonan, said that reasons other than money are the problem. The main reason is that there has been a lack of ambition and foresight in drafting a plan that can set out a clear vision of what we want for this country over the coming years. The Government should revisit its proposal to proceed with the sale of the bank and use the proceeds to reduce debt. An expanding economy will reduce the debt ratio anyway.

We are not out of the woods and we must be vigilant and conscious of external threats. There is an immediate threat to this country which would be another good reason to explain to the European Commission that this once-off sale of what is now a State asset and was a State liability is an exceptional circumstance. That treat comes from Brexit. This country needs to be weather-proofed against the potential gale force winds which may be coming towards us in the context of Brexit and the negotiations after the triggering of Article 50.

There are many reasons for us to be able to make a case that this is a once-off receipt and a once-off payment. It is a payment in lieu of the Irish people standing by the Irish banking system. Not only did they stand by the Irish banking system by investing and maintaining AIB on life support, they also stood by the European currency.That should not be forgotten. When the Ministers are in Europe over the coming weeks making the case, as I hope they do after tonight’s debate, they must impress the importance of this opportunity to invest in the Irish economy and people in terms of capital investment upon those with whom they are dealing.

I could highlight many deficiencies across the country in terms of infrastructure, housing and our third level institutions which are under huge threat and pressure. The economy will suffer because of that. We must invest in third level education to ensure that we have a continuous stream of high quality graduates and post-graduates. They are the key to any economy. If we do not do that and we do not have the space, the access, the research and development and innovation, people will look at this country and say that we are not investing in the key areas that are required to maintain, enhance and advance an economy.

While there are varying views on the motion, the sentiments are the same, that the potential €3 billion should be used for investment. That should be done because it is a once-off receipt to the Exchequer.

An important matter which was not mentioned in some of the amendments to the motion is that the Irish people stood by the bank when it was going to fall over. It required massive investment which cost huge sums of money. That caused a lot of pain. AIB must ensure that, when it does fly the coop and the State no longer holds a minority stake, it understands that it has a duty and obligation which will be called in time and again while I am a Member of this House. That obligation is to ensure that it handles debt relief, debt forgiveness and assessment of debt for individuals and business across the economy in a fair and meaningful manner.

That is the very least they owe the people as they set themselves in train for an IPO.

The other important issue is that we must be very vigilant they do not start disposing of some of the assets to third investors, to outside investors and to vulture funds or venture funds in order to tidy up their balance sheets to make themselves more attractive. This would be throwing people to the wolves because the banks want to get back into the private market as quickly as possible - mainly for the right motivations but sometimes with a view to themselves and their salaries and shares in a couple of years' time and all that flows from that. We should be very conscious of this. I would be worried that in the next couple of weeks or months they would start that process while they try to muster themselves in the markets internationally. There is much concern and worry among the representatives of small businesses, the farming community and private dwellers but primarily among those with commercial loans that this could happen when the banks are tidying up balance sheets. That is the reason I raised the issue and the Minister of State might take it on board because I know he has a specific interest in that area. Overall this is an opportunity to seize this amount of money for the people and I urge that the €3 billion, or whatever the amount that is raised in an IPO minority sale of AIB, would be used for the reasons outlined by Members here tonight.

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