Bertie Ahern (Dublin Central, Fianna Fail)

To repeat what I said to Deputy Rabbitte yesterday, Bulgaria and Romania will join the EU in a few years and discussions have started with Croatia and Macedonia. From the Thessaloniki summit of a few years ago Europe is committed to ongoing talks in that region of Croatia, Macedonia and the other countries as they prepare initial association agreements. Talks with Turkey will continue for a long time. There should be deep consideration before we make any further commitments. Otherwise we will get into a host of enlargements which people have no appetite to fund, causing difficulties down the road. The problem with the EU is that somebody thinks up a bright idea, it takes off and everybody is linked into it. The bright idea that should be worked on is the EU neighbourhood policy, which we should develop before we embark on further enlargement. Otherwise we are straight into considering very large countries. One could argue, as Mr. Putin does sometimes, that some of the member countries are less European than Russia but where does one stop? Having seen the last round on financing issues, enlargement is a great idea but not when nobody wants to pay the cost so people should work that through. It puts unfair pressure on the Commission. It is asked to prepare the proposals but has no control because the European Parliament and Council are pertinent to financial issues. We are talking about the period 2010-20. As Deputy Kenny knows the European Council changes frequently, particularly with the new Eastern European countries — practically all the people who came in on 1 May are already gone — so one just gets more bright ideas. They know my view — I do not think they are very bright ideas and often speak against these ideas, which is not always popular. It does not make sense to me. The EU will get itself into an awful bind if it continues this way. We should develop the new neighbourhood policy.

On the Iranian situation, the formal negotiations between the EU three — Britain, France and Germany — and Iran have addressed nuclear power. The view is that because Iran has resumed uranium conversion it is in breach of the Paris agreement. Iran had earlier rejected proposals by the EU three on the future of its nuclear programme. The board found Iran was not compliant with its safeguards agreement with the International Atomic Energy Agency, and that the history of concealment of Iran's nuclear activities and the nature of these activities have given rise to questions within the competence of the Security Council. Iran has announced that it would recommence research into what it calls its peaceful nuclear energy programme and the IAEA removed the seals at several nuclear installations in Iran. The General Affairs Council met on Monday and expressed grave concern at Iran's decision to resume the enrichment related activities. The Council inter alia called on Iran to re-establish a suspension of all enrichment related and re-processing activities, as repeatedly called for by the IAEA board of governors resolutions, as an essential confidence-building measure. The Council also emphasised that the EU remains committed to a diplomatic solution to the Iranian nuclear issue at which the IAEA will play a central role and that the involvement of the Security Council does not end the IAEA's responsibilities but strengthens them. The IAEA board of governors will meet in Vienna next week. Ireland is not currently a member of the board but the Minister for Foreign Affairs, Deputy Dermot Ahern, will keep closely in touch.

In India I asked the Prime Minister what his intentions are around the nuclear issue. I read the report and other related reports before Christmas. I explained our traditional position regarding the nuclear non-proliferation treaty. As the Indians see it, nuclear power can meet the country's huge needs for electricity. The Prime Minister described India as a responsible nuclear power. The Indian Government is trying to help 60 million rural people with new schemes, such as a new arrangement where people will be given 100 days work. Mrs. Gandhi explained that it would put billions into the rural communities. The only way this can be done, according to the Indian Government, is by providing nuclear energy. This has caused many problems with the Nuclear Suppliers Group. I stressed our track record on the issue of nuclear disarmament and non-proliferation and they were not surprised with our close association with the nuclear non-proliferation treaty. We will not change the world for them, but they know our position on the issue. They are working hard to get a change in the position and they expect that the American President will come in early March and that this issue will be at the centre of discussions. They do not see themselves as being involved in nuclear proliferation, but in trying to look after the 800 million people who are not in the middle class and they see nuclear power as the only resolution to this problem. I think they will give any guarantee that is sought by the Nuclear Suppliers Group. They want to build nuclear power for their energy supply. The Prime Minister was at pains to point out that they were not into global proliferation. I know that this may create problems with Pakistan, which takes a different view.

The Deputy is correct about the Indian film industry. It is a huge, competitive industry. The sums of money involved, even for the smaller films, are enormous. In 15 years, India has built up a very powerful film industry. I attended one of the functions with the Minister, Deputy O'Donoghue, and there were people from Australia, New Zealand, Singapore and many other countries. They get the best deals and the reason the industry has got competitive is that so many people have followed our arrangements. The Minister is pressing the Minister for Finance to make some changes in the Finance Bill. This business is about where to get the best deal. The size of the budgets is staggering. Going after the very big films is probably out of our league, in my opinion. However, there are sizeable films that would be very helpful. They will follow deals and will not come here out of sentiment.

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