Michael D'Arcy (Fine Gael) | Oireachtas source

If memory serves me correctly, Fine Gael had a reason for not being too happy with this scheme at the time. Through this guarantee for the banks, the State was taking on a liability of ¤375 billion. No matter how one views it, though, it is turning out to be a success because the liability has been reduced to ¤78 billion. That is some reduction.

However, it has come at a price. According to the Minister of State's figures, the liabilities outstanding under the eligible liabilities guarantee, ELG, scheme was ¤147 billion in the second half of 2010. It fell to ¤102 billion and again to ¤78 billion. This reduction of almost ¤70 billion occurred during a 24 or 27-month period. As anyone who has been in business knows, if one pays off one debt, something else gets left behind. In this case and as I have often stated, that something is the effective lending to businesses. One cannot pay down at that rate and loan money while still owing the emergency liquidity assistance, ELA. Although the scheme is proving to be a success for the Government in terms of removing the liability from the State, as is appropriate, it has a cost, namely, the difficulties being faced by businesses of every type. Will the Minister of State comment on this point? The charge that we are receiving is reasonable in terms of the short money.

I will put my hands up and agree that Senator Byrne's remarks on Fine Gael and Labour were somewhat accurate. However, he must remember that, if one picks up something mid-stream, one cannot revert to a point from which one would have liked to have started. For us, that point would be never to have commenced this scheme in the first place. To cite Senator Barrett, a shady deal was done that night up the back stairs on Merrion Street. No description is more apt.

Senator Byrne accused Fine Gael of being unpatriotic. We pulled on the jersey-----