Brian Hayes (Dublin South West, Fine Gael)

Irrespective of our worries about growth rates at the end of this year, we have to introduce the necessary changes to our domestic policies. Our assessment will be put in the public domain next week, but who knows what the rate will be at the end of the year? The difference between the first and third quarter can be very different depending on the tax take from businesses.

Senator O'Toole also asked about burning the bondholders, or what those of us who take a more considered view called burden sharing during the election campaign. His question about whether we studied what has happened in other countries was a fundamental one. I urge my colleagues to read a simple pamphlet published by Deputy Donohoe which outlines in clear terms the options on default and points out that we are a developed economy and, unlike Iceland, part of a single currency. To consider the options on default, people need to be clear about where we will get the liquidity needed to keep our banks intact at an equivalent rate to the 1% we are getting from the ECB. If anyone can suggest another agency on this planet which can offer us that 1% facility, I am all ears, but it is not likely to happen. Deputy Donnelly, who is a very sensible individual with a big contribution to make, recently appeared on a "Prime Time" programme with the Minister for Enterprise, Trade and Innovation, Deputy Bruton, and when pushed to state what country he was thinking of in terms of default, his answer was Argentina. That country experienced 27% inflation over a period of two years. I ask Members to compare the pay levels of our teachers with that of Argentinian teachers or the difference between the top of that society and those at the bottom.

We are a developed and sophisticated economy and are part of a single currency zone. The notion that we would default on our sovereign debt or take unilateral action as a result of being a member of the ECB is daft. I stated as much during the election campaign, regardless of what others said about not paying a penny more.