Labour T.D. Says Referendum Required On Permanent Bail Out Mechanism

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) April 6, 2011 -- Deputy McNamara pointed out however, that the referendum proposed by the Dáil technical group of 13 independent TDs would be meaningless as no viable alternative method of funding the State’s day-to-day activities has been put forward.

He said: “Were a referendum, as proposed by the Technical Group, to be held now and were the Irish people to reject the bank-bailout, which I do not accept we would, it would change nothing.

Criticising the Technical Group who proposed a referendum, Deputy McNamara asked: "How do the proposers of this motion suggest that we would continue to pay our Gardai, our teachers, our nurses? How do they propose that we raise the funds to maintain the weakest in our society in the dignity their humanity demands? They don’t. As our banking system is reliant of short-term funding to the tune of €120 billion from the ECB to continue to function, how they propose to ensure that ATMs across the State continue to function? They don’t.

The Clare Labour T.D. added: “It is undeniable that a permanent bail-out mechanism widens the scope of Union powers beyond the general framework created by the provisions of the Treaties as a whole and, in particular, by those that define the tasks and the activities of the Union – and therefore will require a constitutional convention and subsequent ratification by each member state according to their national legal framework – which in Ireland means a referendum.

“The form of the permanent bail-out mechanism will determine whether the tax-payers of member States, this State or another, will be required to guarantee the gambling debts of renegade banks, with tax-payers throughout the European the ultimate guarantors of those debts.

“We must ensure that such a profound change to the European Union mechanism is not put in place and, I believe we will find ready allies in this task across the European Union. That is the diplomatic battle with which this State must now engage and we must prevail”, Deputy McNamara concluded.

-ENDS-

Note To Editor:
- Michael McNamara, T.D., is available for interview and further comment on 086-0842159
- Full text of Deputy McNamara’s speech below.


“Thank you Ceann Comhairle

As this is my first opportunity to speak in this House, I wish to take the opportunity to express my gratitude to the electors of Clare who have bestowed upon me such a great honour.

I do so cognisant of those who have represented Clare before me, both within the Labour party and without, since the foundation of this State and before.

Turning to the motion before this House, Ceann Comhairle, I say that this is not the time to hold a referendum.

Of course it is tempting to think that in one heroic act we could we could fly clear of the entrapment of the hugely onerous debt burden which the blanket bank guarantee and the resultant EU IMF bail-out deal impose on our State.

But it must be remembered that the blanket bank guarantee – which it must be stressed was exactly such a unilateral action as that proposed in the Technical Group’s motion – was not the act of a despotic foreign political institution.

It was the act of the democratically elected government of this sovereign State. And the government which I support is now tasked with dealing with the resultant current fiscal and economic crisis in conjunction with our European partners. Therefore, I support the proposed amendment to the motion.

Were a referendum to be held and were the Irish people to reject the bank-bailout, which I do not accept we would, it would change nothing.

The difference between what our State takes in and what we spend on day-to-day expenditure is 21 billion euros. We cannot as yet raise those funds in the markets, though the indicators are good.

As we cannot, how do the proposers of this motion suggest that we would continue to pay our Gardai, our teachers, our nurses? How do they propose that we raise the funds to maintain the weakest in our society in the dignity their humanity demands? They don’t.

As our banking system is reliant of short-term funding to the tune of €120 billion from the ECB to continue to function, how they propose to ensure that ATMs across the State continue to function? They don’t.

The reality of what the proposers of this Motion envisage is a morning where the ATMs don’t function and the social welfare hatches remain closed. A morning where chaos reigns and the weakest and most vulnerable become collateral damage in their ideological parlour game.

The reality is that our State’s debts will persist unless dealt with multi-laterally. It is for that reason that Minister Gilmore announced a diplomatic offensive last weekend.

To the members of the Technical Group who proposed this Motion, I saw that you will have a referendum – one which will profoundly impact upon the course, not only of this State, but of the entire European Union. But such a referendum will take place only when there is something meaningful to refer to the people.

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