David Cullinane (Sinn Fein)

I welcome the Minister of State back to the House. As I understand it section 2 provides the Minister for Finance with the authority to make payments to the ESM to cover this country's contribution to our share of the authorised capital stock. The amount involved is extraordinary. Section 3 sets out the amount but I am dealing with section 2 which gives the Minister power to do so. The sum is €11,145,400,000. It is an incredible amount of money that the State, which is essentially bankrupt, will put into the ESM.

I made the point yesterday in the course of my Second Stage speech that a positive option that must be considered is for the ECB to consider directly funding the ESM. Many politicians not just in this country but across Europe have pushed for such an option as a better way to resolve the issues that exist and to provide the necessary firewall to stabilise the euro. We wish to ensure that the integrity of the euro is protected and, more importantly, the lives and livelihoods of citizens of Europe. I also echo a point made yesterday by others that countries that are in a bailout situation, as is the case with the European Financial Stability Facility, EFSF, should not have to make a contribution yet the ground rules are changing with the ESM treaty. The situation that will arise is we will borrow money from the troika, the IMF and the European Central Bank to put into the fund. Whatever way one looks at it, we will have to borrow money to cover State expenditure, for day-to-day spending, paying back bondholders or putting money into the ESM. That is money the taxpayer will have to spend and the State does not have the money which means we will have to borrow it. We will borrow the €11 billion over a period of time. I accept the amount is capped.

The Minister of State might indicate that we might not have to make the full contribution but we might have to pay even more in time because of what is happening in Greece, Spain and potentially Italy. It does not make sense for countries that must make a contribution to borrow money to put into a fund to get the money back. I will oppose the section to give the Minister for Finance the authority to be able to use borrowed money on which we are paying interest to give to the ESM and then for us as a nation that is in a bailout programme to pay more interest when we receive money. That does not make sense. There is a better way of doing it. We suggest the better way is the European Central Bank to fund the ESM. That makes far more sense.