Ireland’s sovereignty was not compromised by the EU-IMF deal but by extensive borrowing from world money markets since 2008, Minister for Finance Brian Lenihan told the Seanad today.
Introducing the Finance Bill in the Upper House, he said the debate about the EU-IMF funding had not progressed beyond the "elementary argument" about sovereignty.
"Once you have to visit a bank manager, you lose some of your sovereignty," he said.
He said it was the extensive borrowing “which compromised our sovereignty, not any particularly decision to enter any particular arrangement”.
Mr Lenihan also hit out at the Green Party for pulling out of Government before tax matters relating to civil partnerships could be addressed in the Bill. He regretted that this matter could not be dealt with even though work on preparing the necessary amendments was "far advanced" in his department.
"It was extraordinary that the Green Party, which made such an effort at pushing the question, could not find it in its heart to give the Government another week or two to arrange that," he said.
He also criticised as a “complete illusion” the idea that Ireland can "unilaterally execute a démarche and renegotiate” the interest rate on its EU-IMF deal. “The idea that such would be submitted to the people as a serious policy proposition in the next few weeks is disturbing because it is misleading the people as to the essential and real choices available to us.”
Fine Gael finance spokesman Dr Liam Twomey claimed new Fianna Fáil leader Micheál Martin is leading a party that is less popular than Sinn Féin, yet is demanding leadership debates.
"The idea of him giving leadership is comical. The people will not take much notice when Fianna Fáil candidates come to their doors in the coming weeks offering empty promises with a bunch of €1.99 flowers under their arms.”
And he described the Bill as “a holding position”.
Green Party Senator Dan Boyle said the Bill could be described in political terms as “the longest death wish in Irish political history.”
Labour Senator Alex White agreed with Mr Lenihan that reconfiguring Ireland’s debt could not be dealt with unilaterally, but that did not mean it should not be pursued.
The Bill is expected to be passed tomorrow after the committee and report stage debate.
Mr Lenihan said the Dáil would be reconvened if any recommendations were necessary. “I have done my best to ensure no recommendations will be required but I will yield to the ingenuity of the Seanad if it can devise a suitable recommendation.”