Sean Barrett (Independent)

I welcome the Minister of State. I endorse the comments of Senators Hayden, Darragh O'Brien and Michael D'Arcy. We had a very good debate the last day. We see the IMF as part of the post-war architecture that prevented the period since then being a rerun of the 1920s, 1930s and 1940s. The IMF is a much-reformed organisation, which helped it to get support from parts of the House it might not traditionally expect. It takes into account the social and political dimensions of countries it advises and does not go around seeking to devour countries, as per the demonisation of the organisation. It is brought in by Governments to help. The advice that one cannot borrow one's way into prosperity is useful and we are in a good position to give this advice. One must husband the nation's resources efficiently and frugally.

The IMF is the best of the troika elements in understanding what happened in Ireland and giving advice and assistance. The IMF has experience of the collapse of banking systems in other countries and we are not first country to get into difficulties with public finances.

Like Senator Hayden said, it is important that BRIC countries participate more. We must inquire in other fora whether the 85% rule gives the United States too much power. I am not running on an anti-American platform but as participation is extended to the emerging countries, perhaps the 85% rule should be examined. Canada still has solvent banks and it is useful advice for us to get. These contacts are useful because some of our difficulties were caused by design faults in the euro and the solution to that lies in building up more allies outside the eurozone. The no exit mechanism is causing so many problems in Greece and one size does not fit all. What can a country do when it gets massive capital flows such as those that flowed into the Irish banking system from France and Germany in particular?

The 100 basis points reduction in interest rates is very good news in a country where 20% of tax revenues are paying interest on the national debt. I echo the comments of Mr. Colm McCarthy on RTE radio this morning that running down the debt is useful and should not be perceived as a waste of money. If we can reduce the tax burden, industry can flourish here.

We already have €8 billion in the kitty from the sale of State assets. I would hate to be in the shoes of the Minister for Finance if he had to come in here and ask for €8 billion in extra tax. If we sold the telephone company for more than it was worth, I am glad the State was on the winning side of some transactions. According to Professor Kennelly's account of the Kerry Group, Mark Clinton saw that the dairy disposal company had a much better future as Kerry Group than it would in State ownership. It is now one of the three biggest companies in the Irish stock exchange and a major company in the international food business. Greencore is a similar story, as is the Irish Continental Group. The B&I Line was one of the nuisance companies in State ownership but it has become a highly sought-after share. The ownership of State companies by citizens was fictional because they had no power. At least those who own a share in a private company can turn up at the AGM and there is some illusion of power.