Noel Treacy (Galway East, Fianna Fail)

I emphasise the deep concern of the Government about the increasingly serious situation in Gaza and the West Bank. It is essential that all parties have the courage to act with restraint — in particular at this time, the Government of Israel — and to avoid any further actions which cause additional escalation and endanger lives.

On 16 June the European Council issued a declaration on the Middle East peace process which set out the overall policy and the specific concerns of the European Union. It reminded all parties of their responsibilities to protect civilian lives and set out unambiguously the longer-term obligations on both sides. These include the need for Israel to end all activities in the occupied territories that threaten the viability of a two-state solution and are contrary to international law. The EU has been consistent in its approach to the Palestinian authority. We welcome the conduct of the democratic Palestinian elections in January and since 30 January the EU and the wider international community have set out the steps required of a Hamas Government. It must commit to non-violence, recognise Israel's right to exist and accept the agreements negotiated with Israel by the PLO and the authority. We support the efforts of President Mahmoud Abbas to encourage Hamas to accept the peace process. If there is significant movement in this direction by Hamas, the Government is committed to arguing strongly for an appropriate EU response.

The Government monitors closely the situation in the occupied territories, shares the widespread concern about developments in Gaza and the West Bank and believes that the Palestinian people should not face the prospect of a humanitarian crisis because of the reluctance of its Government to abide by the basic rules of the peace process. We have given a commitment that the level of Ireland's bilateral assistance to the Palestinian people will be maintained in 2006. The EU has been the strongest supporter of the Palestinian people, providing total assistance of €500 million annually. It has stated that it will continue to provide all the necessary assistance to meet the basic needs of the Palestinian people. It is unreasonable, however, to argue that we should continue capacity-building assistance to the Hamas Government irrespective of its attitude to the peace process.

The European Council and the Quartet have endorsed the European Commission's work to establish a temporary international mechanism to channel assistance directly to the Palestinian people. The operation of the mechanism will commence in the coming days, based on a funding allocation of €105 million by the Commission. This will bring the total Community aid to the Palestinian people so far this year to €259 million. The mechanism will focus on essential services, starting with the health services. It will also involve a programme of allowances to the many Palestinian families in need. The arrangements will be reviewed after three months.

I hope that other international donors, including the Arab states, will make early and substantial contributions through the new mechanism. As the European Council emphasised, it is also now important that Israel finds a way to resume the transfer of withheld Palestinian tax and customs revenues, which are essential in averting a crisis in the Palestinian territories. The withholding of these revenues has been the most significant factor in the economic difficulties now facing the Palestinians.

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