David Cullinane (Sinn Fein) | Oireachtas source

I want to paint a picture to set the context and then make one simple point of fact. The Minister of State has seen the report released today that shows up and magnifies the crisis in Europe and in this State in respect of poverty and employment. The 2011 CSO figures show that 25% of the population is living in deprivation. One third of children are living in deprivation and twice as many people at work are living in deprivation. The low paid, the unemployed and lone parents were hardest hit. A study on the impact of austerity across Europe concludes that austerity is not working. Many people are genuinely suffering and have borne the brunt of six austerity budgets. In that context, we are asking them to pay the debts of a toxic bank. The taxpayers of this country, the people who have borne the brunt of six austerity budgets, did not borrow one cent of the ¤28 billion. The taxpayers of this country did not spend one cent of the ¤28 billion, which is a legacy debt of a toxic bank. It belongs to the people who lent to the bank and were reckless in their lending. It is the responsibility of those who ran the bank and mismanaged the situation. It is not the debt of the people of this State, it is the debt of the bankers and those who lent to the banks. Why on earth should I celebrate turning toxic banking debt into sovereign debt, which is the ultimate fact? We got rid of the promissory note, as one of the Government Senators said, but replaced it with a sovereign bond. The bonds will be sold to the private market and interest will be repayable every six months. Once they are sold, the interest rate will be determined by the European Central Bank. We asked this generation and also the next generation of Irish people to pay the debt.

I resent the assertion of the Minister of State that my opposition to the taxpayers having to pay debts that are not theirs is somehow party political or designed to gain party political advantage. I too have two young children and I do not want them to pay those debts. I would not ask the Minister of State or any Senator from the Government or Opposition to pay my mortgage. If my mortgage had 20 years left and I asked the Minister of State to pay it and offered him a good deal to pay the loan over 40 years, would he see it as a good deal? He would not and that is the central point the Minister of State and his Government have not come to terms with.

Sharp criticism was directed at my party but that is not the view of many people I meet every day of the week. They are genuinely suffering. The reports today demonstrate conclusively and show policy makers and Oireachtas Members the level of deprivation and poverty and the impact of the decisions taken by the Government on people who live in the State. On the day the two reports appeared and explicitly put it on record, the Minister of State is asking me to see turning ¤28 billion of toxic dodgy banking debt into sovereign debt as a positive development. He is asking my children, his children and families outside the Chamber to pay for it. I will not be part of that and my party will not be part of it.

The Minister of State pointed out that the European Central Bank, ECB, sought a separation of banking debt from sovereign debt, but there has been none in this deal. Instead, the Government turned banking debt into a sovereign bond last week. This is the reality of the situation. The Government will not receive my support or that of my party for doing so while imposing austerity budgets that cause such deep hardships for many families.