Michael Lowry (Tipperary, Independent) | Oireachtas source

In recent days I have noticed a shift in people's focus. While people remain overwhelmed and afraid of all aspects of the coronavirus, there is an acceptance that life as we knew it has temporarily disappeared. There does remain a strong sense of gratitude for the supports that the Government has put in place. However, overriding fears for our financial future are intensifying.

The reality is that people know we are facing another period of great uncertainty, and there is rampant speculation about just how bad it will be. People are worried that the assistance being handed out by this Government will be clawed back by any new Government. Will the income protection schemes that are currently in place be extended if necessary beyond the current three-month deadline?

I acknowledge the Minister's prudent and careful management of the economy, which had put us in line for a budget surplus in 2020 and 2021. The disastrous health and financial consequences of Covid-19 are going to transform that projection to an estimated €20 billion deficit. We obviously have to borrow in order to fund the national economic programme. In doing that, we have to be mindful that as a country we are already heavily borrowed. The National Treasury Management Agency confirmed that as of the end of March this year, our net national debt stands at €191 billion. That is the equivalent of €39,000 owed by every man, woman and child in this country. The yearly cost of servicing that debt is €4.6 billion. Does Ireland, as a country, have the capacity and the creditworthiness to secure further enormous borrowings at favourable rates? Am I correct in assuming that the Minister would be reluctant to borrow under the European stabilisation mechanism? It is inevitable that this fund would attach strict conditions including adherence to a national fiscal programme similar to that enforced by the Troika. Is the Minister in favour of the establishment of the proposed corona bond scheme, which in effect means that euro members' national debt would be consolidated across the eurozone? Would the other option, of borrowing through markets with the European Central Bank's support and guarantees, be the preferred route for Ireland to borrow through? Finally, could the Minister envisage an opportunity under any of the European Union funding mechanisms to refinance our existing loans with the intention of reducing our existing annual interest bill?

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