I want to raise a decision of the Government for which the Taoiseach cannot blame Fianna Fáil, despite that party's responsibility for the origins of this crisis. Last Saturday, the Government abjectly capitulated to the European Central Bank when the Minister for Finance indicated in Poland that the full €3.5 billion that was gambled in Anglo Irish Bank by the holders of unsecured bonds would now be paid. Just three months ago, the same Minister made world headlines when he said in Washington that the Government would burn the bondholders. He said "we don't think the Irish taxpayer should redeem what has become speculative investment". Six weeks from tomorrow, the first €1 billion will be paid to speculators in Anglo Irish Bank. Will he explain why this breathtaking betrayal of the Irish people is taking place when sharks in the financial markets are being protected and rewarded? Why is the Government prepared to continue the disastrous policy of austerity that is affecting our people? It is preparing to savage the incomes of low and middle income workers, introduce a new household tax, withdraw the current provision of special needs assistants and cut fuel and electricity allowances from pensioners and the poorest people. While it has no compunction in hitting ordinary people, it is bottling it when it comes to tackling banking speculators. What is responsible for this change in policy? Why did the Government make the promises that it is now failing to live up to? Why did it raise people's expectations in this way before letting them down? I will compare the Government's actions in sporting terms to the actions of the heroic Stephen Cluxton last Sunday.

What team was the Deputy shouting for?

It is as if, rather than kicking his county into history after a brave run forward, he suddenly turned and booted the ball into the faces of his team mates and into his own goal. Rather than going to speculators, this €3.5 billion of the funds of our people should be going into investment and services. I ask the Taoiseach to explain why that is not happening.

What about the budget deficit?

If Stephen Cluxton were able to kick the ball 160 m, he would be an even better person than——

Than yourself.

——Deputy Higgins gives him credit for. Fair play to the Dubs for what they did. The Government committed to making this situation more tolerable for the Irish people and the Irish taxpayer. The discussions between the Government and its counterparts about how it can be made more tolerable, particularly at finance ministry level, have brought about final decisions in regard to a number of matters. Deputy Higgins is aware — he does not want to recognise it — that savings of approximately €9 billion will be made over the average period of seven and a half years that was originally envisaged for these loans. As the Deputy knows, that is the equivalent of approximately 5.7% of the current forecasted level of GDP for 2011. The saving comprises €4.9 billion on the EFSM funding, €3.5 billion on the EFSF funding and €0.57 billion on the UK bilateral loans. This is a significant saving. The Minister for Finance spoke directly to Mr. Trichet, the Commissioners and all his colleagues. They regard the decisions taken by Ireland, and the position to which Ireland is moving, as very significant in light of the difficulties being experienced by the eurozone countries. The real situation, which the Minister said he would reflect on, is that when burden-sharing of the kind mentioned by Deputy Higgins was referenced in the Greek case, contagion began to spread immediately to other countries. The Minister for Finance said he would reflect on his discussions with Mr. Trichet. He made it clear that another argument would be followed in respect of the promissory note. When the previous Government signed up to that note, it committed to pay some €30 billion over the next ten years, or €3 billion per year. It is obvious that if maturities and interest rates were to be applied in that context, further significant savings could be made by the Irish taxpayer and the Irish people. The Minister for Finance has said he will reflect on this following his discussions with Mr. Trichet and others. These are matters to be negotiated and agreed.

The Taoiseach did not answer the question. The Minister for Finance was very vocal in Washington. He said he would burn the Anglo gamblers. According to the schedule I have, some €3.5 billion is to be paid to them over the next seven or eight months. A total of €21.5 billion is to be paid to all the other holders of unsecured and unguaranteed bonds, for which the Irish people have no responsibility. The Taoiseach needs to deal with that issue, rather than using figures to show that disastrously high interest rates, which should never have been imposed by our so-called partners, are being brought down. The incredible explanation given by the Minister and the ECB was that what he had said about burning the bondholders — those are my words, but that was the idea — was not the way forward if we were to try to encourage the markets. When the Taoiseach refers to "contagion", he means that the sharks in the market would go to Italy and Spain and raise their interest rates. The Government and the ECB are running in front of these unelected and unaccounted players in the financial markets. They are sacrificing the livelihoods, jobs and welfare of our people. I ask the Taoiseach to have some bottle. There is no responsibility on an Irish Government to repay these tens of billions of euro. He should stop it now. The money should be invested in public infrastructure and used to create the tens of thousands of jobs needed by our people.

What about the budget deficit?

This disastrous policy of austerity should be ended.

The Deputy should get real.

The updated NTMA estimates, which reflect last week's announcements and decisions by the Minister for Finance, refer to a reduction of approximately 2.6% in the EFSF rate and a reduction of just under 3% — 2.925%, in fact — in the EFSM rate. Therefore, the annual interest saving under the EFSF will be €450 million and the savings under the EFSM will be €650 million. There will also be a saving of approximately €100 million in respect of the bilateral loans. If the entire €45 billion is drawn down, approximately €1.2 billion will be saved each year, for as long as the amount remains outstanding, as a result of these changes. In addition, the cost of the IMF loans will reduce as a result of recent and forthcoming increases in Ireland's IMF quota. The NTMA has calculated that the overall benefit of this interest rate reduction will be some €1.9 billion, of which some €30 million will arise in 2012 and is included in the overall estimate of €900 milllion in interest savings next year which even Deputy Joe Higgins will admit are very substantial. Based on the estimates for the changes to the EU and IMF elements of the loans, the overall savings, based on the inital lifespan of the programme, which will be extended, would be over €10 billion. For 2012, the changes to the EU and bilateral loans, combined with the impact of the IMF quota changes, amount to some €900 million. The average maturity date of the loans will be extended. This will have the effect, as pointed out by Commissioner Rehn on Friday, of improving our debt sustainability and also the liquidity for Ireland.

The Minister for Finance, Deputy Noonan, has pointed out that Ireland will have a pre-paid margin of €600 million in the EFSF returned in 2016. While it is important to note that this return will be been factored into the interest savings figures once the funding under the programme is drawn down, it gives rise to an upfront capital receipt of €600 million capital in 2016 directly to the Exchequer.

The Taoiseach should answer the question.