Could Members settle down for the next speaker, Deputy Boyd Barrett, please?

Are the Members finished talking now? Deputy Boyd Barrett to proceed.

Deputy Ferris is being very disorderly.

I thank the Ceann Comhairle.

I do my best for the Deputy.

As the Taoiseach rightly suggested, Fianna Fáil bankrupted this country by providing a blanket guarantee to bankers and bondholders-----

We are all agreed on that.

-----yet the Taoiseach's Government has continued this disastrous policy at a terrible cost to ordinary citizens who have lost their jobs and seen their incomes and services butchered. The Taoiseach has extended that policy by continuing to pay off unsecured and unguaranteed bondholders.

Can we have a question?

Yet no matter how much the Taoiseach grovels to the troika and to Angela Merkel she snubs her nose at us and insists that we take more pain and now she wants to do the same to Spain and Italy. Yet against this background this week the Taoiseach's Government is in the process of paying over €1 billion to Anglo Irish Bank and Irish Nationwide bondholders. Is not the equation in terms of this transaction very simple and very cruel? Somewhere in the Mediterranean or the Caribbean a multimillionaire speculator will be cracking open a bottle champagne to celebrate his profits bonanza and the stupidity of the Irish Government-----

That is a good soundbite.

-----while somewhere in rural Ireland-----

What would the Deputy know about that?

-----a community fears for the future of their school, or the parents of children with intellectual disabilities-----

The Deputy would know nothing about rural Ireland.

Will the Deputies allow the Deputy in possession to put his question?

A question would be welcome.

-----fear for their child's future because of the loss of vital supports, or more families are made homeless as a result of the Government's cuts in rent allowance.

Thank you, Deputy.

What is the question?

Why does the Taoiseach not save these vulnerable people more suffering by refusing to enrich the multimillionaire speculators in Anglo Irish Bank bonds and go to the European Council and tell Angela Merkel that we have had enough-----

Keep your money, Angela, we will be fine.

-----that the people of this country have had enough suffering and they will not continue to take the pain for her and the multimillionaire speculators?

Thank you, Deputy. The Taoiseach to reply.

That is a great strategy.

I am not sure what Deputy Boyd Barrett's question is. I thought he was going to tell me-----

Go to the European Council and tell them-----

We do not want any more money.

The Deputy does not want any more supports from them either, is that it?

I thought Deputy Boyd Barrett was going to tell me what day he has chosen for his day of national protest.

It is 18 July. I am glad the Taoiseach mentioned it.

That is the day the Dáil will rise, is it?

No, the day before.

I have made it clear before that we share the public's dismay at the cost of honouring the banking debts, considering the role of the banks in the economic crisis. When the Government was appointed we raised this with the ECB and with the various authorities at European level. The fact is the vast majority of Anglo Irish Bank debts were paid off by our predecessors in office. Some €15.7 billion was paid out in senior unsecured bonds since the Government of the day issued a blanket guarantee back in September 2008 and €160 million remains to be paid after this week. If one allows Anglo Irish Bank to default clearly that would create doubt over future funding being made available by the European Central Bank to Irish banks at very low interest levels and we would see a renewed flight of funds and ever tighter credit conditions being placed on potential Irish job creators. We cannot and will not have that.

As I said to Deputy Adams on many occasions, we are not going to default, especially as we have rebuilt the reputation, trust and the confidence of this country. What we need now at political level is a political decision to deal with the eurozone banking crisis. The changes being made by Government are challenging and great credit is due to the people in accepting those changes and for the clarity of their decision, not least in the Deputy's constituency, in respect of the fiscal stability treaty. The crisis of the moment is the banking crisis within the eurozone.

The Van Rompuy paper, referred to by Deputy Adams, is a strategy and a roadmap where growth and opportunity can be created but for me and for the other leaders, the question is what political decisions can be made on Friday in regard to the immediate crisis in the banking situation within the eurozone and to set out that pathway and strategy where confidence, trust and stability can be restored. It is important for investment into the eurozone, investment here, purchases of goods and dealing in the euro. All of those areas require political decisions and that process has to start on Friday.

If I understand the Taoiseach correctly, what he is saying is that maintaining our good reputation with some multimillionaire on a yacht who is celebrating tonight his good fortune-----

-----over the decision to pay back bonds is more important than the future of children with intellectual disabilities------

He probably went to St. Michael's.

-----who have to face the year ahead without vital supports that they need-----

He probably went to St. Michael's-----

-----or small rural schools that face closure-----

The Deputy knows nothing abut rural schools.

-----or families that are being turfed out on the streets.

A question please, Deputy.

That is what the Taoiseach is saying.

I am interested in what the Deputy is saying. Could I have a supplementary please?

Today and tomorrow the Taoiseach intends to pay €0.5 billion back to these bondholders in order that our reputation is good with them. Is that what the Taoiseach is saying?

Thank you Deputy.

Of course, the bondholders must love us; Angela Merkel must absolutely adore the Taoiseach at this stage.

Thank you, Deputy. Is that your question?

Is our reputation with those people more important than the future of vulnerable citizens and children and ordinary people in this country who are being crucified with the cuts that are having to be made in order to repay these speculators-----

What is your question, Deputy?

-----and bondholders?

The Deputy is delighted with austerity.

What sort of priorities are those?

Deputy Boyd Barrett does not seem to understand or appreciate the consequences of default. His whole philosophy in this House has been negative, a case of do nothing, work for nothing, pay for nothing. Part of the discussions-----

People are working very hard.

-----on Thursday and Friday are specifically about-----

Please allow the Taoiseach, please.

-----increasing the extent of funds available to the European Investment Bank which will, please God, have a direct impact on many of those communities whose schools are in poor shape. What is being negotiated is the opportunity to provide bundles of primary care centres or schools under the PPP, public-private partnership, system, provided the conditions can be applied and that the extra funding made available through the EIB can be provided for countries in vulnerable positions such as Ireland. This is in addition to the €17 billion capital programme which the Government has set out for the next number of years in order to deal with the provision of a range of facilities, including some of those to which the Deputy referred.

The Deputy well knows that every country has to borrow money. Does he think in that ruthless world of commercial lending, where these situations apply-----

Ruthless is the right word.

-----that this country could expect to continue to be funded if we were to default or not measure up to our responsibilities?

Do not guarantee the bonds.

Ireland's reputation is of a country that will do what it says it will do, that it will meet its requirements, provided we get the extra assistance and flexibility. This country has made significant progress in the past 15 months. The Deputy seems to argue that we should get the money, not pay it back and expect to get more at the same level.

It is not our debt.

That is absolute nonsense. The Deputy does not live in the real world if that is his philosophy.