Simon Coveney (Cork South Central, Fine Gael)

I have three questions, all relating to bond markets and the ability of the State to issue bonds in the first quarter of next year. To develop on what my colleague, Deputy Hayes, said, what percentage of GDP does the Minister expect the bond markets to require our deficit figure to be in order for us to issue bonds next year? From the briefings the Minister has given to Opposition spokespeople and from people outside the House and his Department, I take the figure Deputy Hayes cited to be accurate. If so, what level of front-loading will be required to achieve that figure?

Up to what level of interest will the Government issue bonds? What is the cut-off figure that would make it no longer viable for us to raise capital? My understanding is that it is around 6%, and we have been well above that for quite some time. At what figure will the Minister instruct the NTMA not to attempt to sell Government bonds?

Third, and perhaps most important, in an effort to bring stability and certainty to markets at the earliest possible opportunity, has the Minister considered the option of bringing the budget forward to a day or so after the announcement in mid-November of the four year budgetary framework strategy, when that is agreed? This could convince the markets, over two or three days, of real action around a four year budgetary strategy to which the Government is committed, followed by real action in the form of the first instalment of that four year strategy. Is that something the Minister is thinking about? It is being spoken of openly outside the House and the Minister should give some clarity on it.

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