Noonan rejects reneging on debt

MINISTER FOR Finance Michael Noonan strongly rejected claims Ireland could renege on its debt and follow Greece’s example.

Mr Noonan said it would be seen if the Greek prescription worked.

“If you want to apply the Greek prescription to Ireland, go out on the streets, burn down the bank, hurt a few people, kill a few people . . . and, suddenly, you have a solution . . .,’’ he added.

“Everybody will roll over and they will cancel your debts . . . and all live happily ever after.’’ Mr Noonan said that plan did not seem to be working out in Greece at the moment. So I would not like to try it, take the Greek formula and prescribe it for Ireland.”

He was replying to United Left Alliance TD Richard Boyd Barrett during a debate on recent developments in the euro zone.

Mr Boyd Barrett said being the good boy in the class, and submitting to the “austerity poison’’ being inflicted on Irish people to pay back the bankers’ debts, had not worked.

“Contrast it with the resistance of the Greek people,’’ he added.

“There is a 21 per cent write-down of their debts and they are talking about further haircuts on that debt because the Greek people are fighting back.’’

Mr Boyd Barrett said there was difficulty in imposing austerity because people were on the streets. “Is not the lesson out of this that you have to pay all the bankers’ gambling debts if you are the best boy in the class and do what you are told . . ?’’ he asked.

“But you get some writedown if you get out on the streets and fight and stand up to these dictators in the European Central Bank, the EU and the IMF.’’

Earlier, at question time, Mr Noonan said the total interest cost to the State for all tranches of the Anglo Irish Bank and Irish Nationwide Building Society promissory notes was about €17 billion, with annual repayments of €3.1 billion.