Paul Coghlan (Fine Gael) | Oireachtas source

I forgot. Forgive that lapse.

I welcome the Minister of State to the House and thank him for his overview of the situation. The arrangements, which were noted by the ECB last week, were the most brilliant financial engineering ever in the State's history. This is certainly the most significant financial development - I love the smile of my colleague opposite - since the previous Government signed up to the bank guarantee. As the Minister of State mentioned, where sovereign debt is concerned, it is proper that a Government not renege on a previous Government's action. It was based on the best advice at the time, regardless of whether we agree with it now. Like the Minister of State, I compliment all involved.

The promissory notes were a death sentence in every sense of the word. The State could not afford the short-term annual payments ¤3.1 billion. We now have long-dated bonds and no capital will be repaid before 2038. God only knows what a Government will do in 2038. None of us will still be around in politics. The process will continue until 2053. An interest rate of 0.36% is an unbelievable bonus, in that it will free up ¤1 billion per annum to ease the budgetary situation. The transfer of the Irish Bank Resolution Corporation, IBRC's assets to NAMA must also be welcomed. This is an extraordinary turnaround that each of us welcomes.

With the greatest respect to Senator Cullinane, who has left the Chamber, his comments were bunkum. We will not ask our children or grandchildren to pay. In 2038, a Government may roll over those bonds into other bonds or so on. The interest rate is 0.36%. In the short term and before they are sold, the interest will be paid to the Central Bank, which will return dividends to the State. I do not understand Sinn Féin's position on write-downs and defaults. Do we want to be another Argentina? No way. This State has always paid its way and will continue to do so. We will be frugal and prudent.

I compliment the Minister for Finance, Deputy Noonan, the Governor of the Central Bank and all of the officials involved.