Feargal Quinn (Independent) | Oireachtas source

I welcome the Minister of State. This deal is another step in the right direction on the road to recovery. Businesses negotiate all of the time. To that extent, I see this as an everyday deal, but at a much larger scale. It gives us a great deal of breathing space, which is what we need now.

I was examining some figures. According to Mr. Cormac Lucey, we will need to pay approximately ¤22 billion less in interest and principal payments in the next ten years under this deal. That is a considerable saving. Had we continued along the same route, we would have increased our chances of falling into a devastating debt trap. While I regret that we did not get an even better deal, as one always looks for a better deal, it is easy to understand the constraints placed on our negotiators. It is likely that this is the best deal with which we could have emerged, given the strategy taken by the ECB. Indeed, the ECB is unable to give write-downs.

As the Minister of State has argued, if one defaults, it does not mean that one's debts are gone. Argentina is still experiencing the effect of defaulting ten years after the event. As to the argument that we will leave greater debts to our children and our children's children, we must remember the fact that all states are in debt. Ireland will be no different. To name one, the United States of America owes a significant debt to China. That situation will not change in the next 100 years. However, I accept that a small amount of our debt, approximately 2%, has been written off in this deal.

We are still in a difficult situation and we must deal with a number of issues, for example, unemployment and the mortgage crisis. In the same way that the promissory note was renegotiated, the customer - the Irish citizen and mortgage holder - should have more opportunities and facilities to restructure debts. I regret that, apparently, the restructuring under this deal will have no impact on the next budget. I would be glad if it did or if the Minister of State could dissuade me from believing that there will be none.

We must remember that this pact only addresses approximately half of our bank-related debts of ¤64 billion. I wish the Government more success in tackling the other half, which relates to AIB and Bank of Ireland, throughout 2013. I hope that the European Financial Stability Facility, ESFS, terms can be improved. Our Presidency of the EU will help us in that regard. I urge the Minister to do what he can.