Enda Kenny (Mayo, Fine Gael)

In an interview on yesterday's RTE news, the Minister for Finance, Deputy Brian Lenihan, raised the possibility of renegotiating downwards the 5.8% interest rate at which money is borrowed under the IMF/EU deal, that is, the bailout scheme for Ireland. Again this morning, he is quoted in the Irish Independent as saying, from Brussels, that he is committed to getting Ireland better terms under the EU/IMF deal. This is very curious. It is difficult to know whether to believe the Minister or not. In the past, he has told us things that have not stood up. On Wednesday of last week, in response to questions from the Fine Gael spokesman on Finance, Deputy Michael Noonan, the Minister said the exact opposite. Deputy Noonan put it to the Minister that an incoming Government would seek to renegotiate a more pro-employment and fairer deficit reduction measure and a more favourable interest rate. In response to that question, the Minister indicated that this was not possible. He said, "The rate of interest and the total amount that must be secured over the programme period of three years are fixed by the agreement." He said the stability mechanism was "locked in".

Arising from the response given by the Minister for Finance in the Dáil, in Brussels yesterday and as quoted in today's Irish Independent, why has the Minister performed such a U-turn in respect of this critical matter? Does the Taoiseach consider him to have further undermined the last shreds of the Government's credibility by first denouncing those who called for a better bailout deal and then by stating that this now was his personal mission? Does the Taoiseach accept that it is possible to negotiate a better deal, including a reduced interest rate, in respect of the agreement on which he signed off a month ago?

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