David Cullinane (Sinn Fein)

The comments made by Olli Rehn yesterday have made it clear to many people in this State that there is one rule for almost every other country in Europe and a completely different one for Ireland. In recent times, Germany, France and Greece have routinely opted out of arrangements that were agreed. Olli Rehn was speaking in the context of the promissory note relating to the former Anglo Irish Bank and stated that it must be paid on 31 March next. It seems that the Government is negotiating on the margins of this issue. It has referred to a potential cut in the interest rate and a possible restructuring of the debt under which we would pay it back over a longer period. However, we must recall what is going to be the true cost of this debt to the Irish people. The total amount is €31 billion, which must be repaid to the ECB. The total interest repayments will come to €12 billion. Therefore, the total amount to be repaid to the ECB will be €43 billion. We will be obliged to borrow the money to pay off that debt. The estimates provided by the Minister for Finance indicate that the overall repayment costs will be in the region of €70 billion.

If we manage to obtain a restructuring of the debt, meaning that it will be paid back over a longer period, we could end up paying back even more money as a result of the interest we will be charged. What the Government should be doing is seeking to have the debt written down. It must be remembered that, when in opposition, the parties currently in government made a number of statements. For example, the Tánaiste, Deputy Gilmore, stated that it would be Labour's way or Frankfurt's way. The Tánaiste made a name for himself as an Opposition leader who railed against paying money back to bondholders and others.

It is in Ireland's best interests not to pay back the debt to which I refer. The IMF recently stated that the debt in question is unsustainable. If that is the case, then it must be written off or written down. The promissory note payment is due on 31 March next, which is also the deadline by which citizens must pay the household charge. The promissory note payment represents ten times what will be collected in the form of the household charge. It is not the case that certain politicians have called on people not to pay the charge. My party has not advocated that people should not pay. We have not made a call in that regard. It is quite obvious, however, that people are taking the decision not to pay, particularly when one considers that only 15% of citizens have paid the charge.

It is the height of madness that on the day on which people are due to pay the household charge, this country is going to hand over a further €3.1 billion to the ECB. The insanity of this is obvious, particularly when one considers the position in which we currently find ourselves. I call on the Leader to again ask the Minister for Finance to come before the House to discuss this very important issue. We need to obtain a suspension of the payment to which I refer and we also require an indication from the Government with regard to what exactly is being negotiated. Mixed messages are coming out all of the time but from what I understand, we are not negotiating for a debt write-down. I am of the view that, fundamentally, this is wrong.