Micheál Martin (Cork South Central, Fianna Fail)

Thank you, a Cheann Comhairle. I wish to add my voice and join with you in articulating our sympathy with the people of Japan as the horror has unfolded in recent days and to say that we support the Government's offer of support and assistance to the Japanese people. We have always been of that disposition in respect of the situation in which we find ourselves. The Government has my full support in regard to that issue. I would also like to assure the Taoiseach and Tánaiste of my full support in respect of any comprehensive programme of assistance that may be offered to Irish citizens who may be anxious to return home or to leave. I am aware of certain situations developing in that regard and, perhaps, a comprehensive programme may be required. The Government can, perhaps, comment on that later in the afternoon in the Taoiseach's contribution. That is important.

Last Friday a number of our European colleagues again tried to put pressure on the Government to increase our corporation tax rate in return for a lower interest rate on the loan facility we enjoy from the European Union and the IMF. They clearly hoped there would be movement on an issue which they also endeavoured to raise with the previous Government and on which they had failed. They could not get that commitment. I think they made the offer during discussions which were not really scheduled for decision-making but were rather exploratory in that regard. I think the Taoiseach recognises that it was a classic try-on and I wish to articulate my full support for the stance he took and his refusal to accept this offer and his rejection of other attempts to exploit this situation in terms of endeavouring to bring about tax harmonisation.

I have heard talk across the political domain about the need for a referendum on the bailout and so on. However, it is important to remind the European leaders, and I ask the Taoiseach to do so, that we had a referendum on corporation tax. We negotiated with the European leaders a protocol to be attached to the second Lisbon referendum proposal, which was put to the people. They were left in no doubt on that occasion about how sincerely and deeply held this view was among the Irish people.

In that respect, if the European Union is to mean anything to its people, the European leaders must keep their word and their word must be their bond. I ask the Taoiseach to remind President Sarkozy and Chancellor Merkel of that at the summit meeting. It is an important point which perhaps has been lost sight of in the recent discussions.

It is unfortunate that the issue of the reduction in the interest rate has been conjoined with that of corporate taxation. They are two separate issues. Over the past number of months, we have witnessed greater insight into, and people becoming more enlightened about, the need for a change and an improvement in the loan facility deal. Does the Taoiseach agree that perhaps the most important thing to emerge from the meeting on Friday was the confirmation that the consensus now exists to improve the European Financial Stability Fund, EFSF, and to ensure greater sustainability and recoverability from the programme?

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