Kathryn Reilly (Sinn Fein) | Oireachtas source

I welcome the Minister to the House and I apologise for missing his speech, which I have just read. I had a previous engagement.

As has been mentioned already, the Bill sets up a direct recapitalisation instrument or rather it permits some guidelines to be added to the ESM treaty. Some people have raised the question, although not necessarily in the House this afternoon, about the legal status of these guidelines. Some commentators have questioned the usefulness of the instrument and the ESM itself. Some people, although not many, claim that it will live up to the grand ambition of separating banking and sovereign debt, as had been anticipated. The total funds available are rather small while the rules mean that the sovereign, namely, the people, would still end up taking some part of a hit. These are legitimate criticisms.

In an Irish context the debate on the ESM has focused on the issue of retroactive recapitalisation and that has been reflected this afternoon in the Chamber. This is where the focus definitely should be, given what has happened in recent years. My colleague, Deputy Doherty, has kept the issue firmly on the agenda but any time he has questioned it he has been told that he will have to wait until the instrument has been established. The Minister has said this will happen in some weeks. I understand 4 November is the relevant date. I am unsure whether there is a firm commitment to make the application for retroactive recapitalisation. There are questions about the exact process to be followed. Even if an application was made, simple questions remain, like whether the application would be treated in the same way as future recapitalisation, and these need to be answered.

Ratifying the Bill without holding the Government to account on the plan to secure recapitalisation could be seen as letting the issue go somewhat or letting the Government off the hook. In June 2012 there was talk of a game changer and a seismic shift. People want to see action being taken. This is why it is important to get confirmation that an application will be made, that the Government will apply and how the application will be treated. The Minister stated in the Dáil that some of the original opponents of our recapitalisation have left their posts but some of the Governments have not changed. Indeed, there has been a good deal of silence and a lack of support has been shown, despite letters sent by the Taoiseach to European Union leaders. Commitments have been made that the matter is being raised at all appropriate levels at ministerial meetings, etc.

My colleagues in the European Parliament sought the support of the Parliament, stating that the European Parliament supported retroactive recapitalisation but the proposal was voted down on a particular amendment. The Minister will know from contributions made in the Dáil in the past week or two that an amendment was tabled on Committee Stage. We will table a similar amendment in the Seanad. We do not believe that the Bill should be allowed to pass without toughening it up somewhat and toughening up on plans to pursue retroactive recapitalisation.

Having listened to the contributions it is clear we all want the same thing. We want a substantial amount of debt to be lifted off the shoulders of the sovereign. As Senators we have a role to continue to question the Government and hold it to its commitments. That is why we will be tabling amendments on Committee Stage on Thursday. I look forward to listening to the Minister and to having further dialogue with him on the matter.