Jim Daly (Cork South West, Fine Gael)
Link to this: Individually | In context

Question 176: To ask the Minister for Finance if he will give an assurance to the public who are concerned about deposit accounts held at An Post under the national solidarity bond scheme; if he will confirm that they are, as advertised, 100% secure; the position if Ireland was to exit from the euro at any stage in the future; and if he will make a statement on the matter. [27411/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

All State Savings money is placed directly with the Irish Government and repayment of all State Savings money, which includes principal, interest and bonus payments if due (or, in respect of Prize Bonds, cash prizes), is a direct, unconditional obligation of the Government of Ireland. Ireland State Savings is the brand name used by the National Treasury Management Agency (NTMA) to describe the range of savings products offered by the NTMA to personal savers.

The suite of Ireland State Savings products includes Savings Certificates, Savings Bonds, Prize Bonds, the National Solidarity Bond, Instalment Savings and Deposit Accounts such as the Ordinary Deposit Account and the Deposit Account Plus.

An Post and the Prize Bond Company are agents of the NTMA for the operation of the Ireland State Savings schemes. However, neither An Post nor the Prize Bond Company retain or manage any Ireland State Savings money. All money invested in Ireland State Savings products is a part of the national debt which is under the management of the National Treasury Management Agency.

Ireland has never contemplated the possibility of defaulting on its sovereign debt and this position has been restated on several occasions. The Government, without any question, will fully honour all its legal obligations to its creditors and has no intention whatsoever of allowing a default.

In relation to our membership of the euro, I am happy to confirm that that is irreversible.

The State Savings products have been an important and dependable component of Government borrowing for many years and make a valuable contribution to the national finances.