Lucinda Creighton (Dublin South East, Fine Gael)

With regard to the question on plan A I am still waiting for Sinn Féin to give us plan B and I look forward to the day when Deputy Mac Lochlainn, his leader and all front line advocates of a "No" vote will give us their plan B and tell us exactly with what they propose to replace the ESM. Will I commit to not ratifying the ESM? Certainly not. The Government is committed to ratification and implementation of the ESM. It would be akin to national treason to suggest otherwise.

On the Deputy's question on the supposed veto, let us remember the ESM will be established this summer on the basis of paid in capital. Once 90% of the paid in capital goes in and those countries who provide it assent, the ESM will be established. Even if we, with our 1.23%, were to decide we did not want the treaty to go ahead and we did not want to be part of it we cannot stop it. What the Deputy proposes is that in 12 months time, after the ESM has been established, is functional and is operational, we would then somehow try to dismantle it. The answer to this is a very resounding "No, we will not do this" particularly in 2013 when we will be exiting our programme. It is the very point in time when we will most need the insurance policy and safety net of the ESM to assist us. It would be quite a bizarre position for the Government to adopt to suggest we would try to dismantle or undo a fund that will already be in place at that point.

With regard to the €6 billion spending cuts or tax increase agenda which supposedly would have to be implemented in 2015 we must make clear that we exit the programme in 2015. A three year transition period is spelled out very clearly in the six pack during which we will be able to adjust in our own time and way, obviously in consultation with our European partners. This transition period exists for Ireland specifically. Transition periods will also apply to the other programme countries. We are speaking about 2018. A €6 billion figure in 2018 would be to suppose there would be no inflation or growth between now and then and I do not accept this. The Deputy's proposition is the very worst case scenario which ignores the three-year transition period, therefore I reject it completely and I do not agree with it. Seamus Coffey and a number of other economists have suggested that no adjustment would be required by 2018 because our growth and inflation would have us on track after we exit the programme and the three year transitional period so a €0 adjustment would be required.

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