Enda Kenny (Mayo, Fine Gael)

We have had further down-rating by Fitch and an increase of spread in the bond yields, even though we are not in the markets.

There is nothing in this agreement of the scale or ambition of Fine Gael's commercially financed new economic recovery authority investment stimulus in water, broadband and energy. There are no cuts in VAT on job-intensive services, no cut in the jobs tax for small businesses and no new measures to get credit flowing for business. Neither does the cut in the minimum wage make economic or social sense. Families must be better off in work than on welfare. Fine Gael propose, instead, to cut employment costs for business by abolishing the jobs tax of 8.5% on employer's PRSI on employees with weekly earnings up to €356.

That is why we welcome the commitment of the EU and the IMF to strengthen the agreement in the area of jobs, growth and economic reform. The IMF has confirmed that, as a matter of principle, it is open to our NewERA proposals to finance an investment stimulus in energy, water and broadband through the sale of State assets that are no longer strategic to economic development. When the Fine Gael economic team and I met officials of the IMF and the EU, they made it perfectly plain that, in accepting the overall targets - as we do - of 3%, €15 billion and €6 billion in 2011, they are quite open to discussing again and renegotiating elements of the plan for growth, job investment and a more effective public sector to deliver more effective services. They were very open and asked me to confirm that in writing to IMF headquarters in Washington, which I did. For that reason, we cannot support this plan as currently laid out. We accept the overall targets and I recognise the difficulty of attempting to renegotiate interest rates.

In due course, we will seek a mandate from the people for our strategy and we will be in a position to renegotiate elements of that plan, as the IMF confirmed to us face to face, while recognising that, for the foreseeable future, it will be necessary to avail of some of the money on offer under this agreement. If that responsibility is given to Fine Gael, it is my intention to be able to return to the international bond markets as soon as possible and acquire money at a lower rate.

Deputy Noonan will spell out some ideas on bank restructuring. There is a better and alternative way of doing this.

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