Enda Kenny (Mayo, Fine Gael)

The decision taken by Government to have diplomatic engagement is paying dividends. In this regard, I note the report of Tony Connelly this morning. This requires that Ministers attend meetings and work outside formal meetings in rebuilding Ireland's reputation. I am sure Deputy Martin would have had something else to say had I come in here following the meeting on 11 March and said I conceded to the request of the French President that we should increase our corporate tax rate. The indication appears to be that on that basis we would get an interest rate reduction.

The Leaders agreed an interest rate reduction should be applied. From our point of view, we have met the conditions and criteria set down in our bailout deal, based on the assessment carried out by the Troika. It is not a case of constantly being on the telephone to the Elysée. I agree with Deputy Martin that a meeting on the margins of a formal meeting does not constitute a substantial bilateral meeting. However, the Ministers for Finance have been given responsibility for this matter and they are negotiating on it. I can confirm that officials from my Department and the Department of Finance and others have been in regular contact with their counterparts in Europe. The Minister for Finance has engaged constructively with his counterparts, including his French counterpart. Madame Lagarde was most helpful and supportive this week in Luxembourg in respect of the change on the preferred creditor status within the EMS, which is important in its own right.

If and when it is appropriate to arrange a substantial bilateral meeting with President Sarkozy arising from the conclusion or otherwise of the work of the Ministers for Finance I will be happy to do so. I have never set a date for a conclusion of this issue or the question of an interest rate reduction. It has always been my expectation and belief that it will be concluded successfully. As I said, the negotiations and discussions continue.

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