Eugene Regan (Fine Gael)

I refer to the IMF report which indicated that the cost of the bail out of the Irish banks would be €24 billion or approximately 14% of GDP. The Government has suggested, in effect, that the bail out of the Irish banks is cost free. The Taoiseach has rubbished the IMF report, in terms of its calculations. It exposes the lie of the Government on the cost of the bail out of the banks.

The editorial in the Financial Times today on the IMF estimates of the costs of bail outs of banks in the financial sector says the International Monetary Fund this week released its updated estimate of losses to the world's financial sector and for more than a year, the IMF's loss estimate has swollen with each update. The estimate for Ireland is conservative. The editorial goes on to say some governments may object to the IMF forecasts but at least the estimates leave no room for wishful thinking and force us to realise there is more pain to come.

I do not understand why the Government cannot be upfront and honest about the costs. The spin on the Irish economy and the public finances just does not work any more. The Government has been found out by the European Commission, with its addendum in January to the stability programme where its estimates for Government debt have already been changed. The Standard & Poor's downgrade of sovereign debt of Ireland and our banks was criticised by the Government and now every economist who ventures to suggest the Government may be going in the wrong direction in the form of the bail out, such as David McWilliams, are immediately taken on by the Minister for Finance, Deputy Lenihan.

David McWilliams indicated that NAMA was set up to aid developers. There is anecdotal evidence already that the banks are easing up on their demands of developers and other debtors because of the proposed establishment of NAMA. This is where the taxpayer, rather than the developer, will bear the brunt. I call on the Leader to ask the Minister for Finance, Deputy Brian Lenihan, to clarify his genuine and latest estimate of the cost of the bail out of the Irish banks to this House. The Department of Finance have refuted the estimates. When have the Department's estimates of the public finances or growth rates in the Irish economy or otherwise last been accurate? I ask the Leader to address that question.