Enda Kenny (Mayo, Fine Gael)

I hope that tomorrow morning Deputy Higgins will actively encourage people in his constituency to participate in the internship scheme which will be launched, and that he will encourage firms, employers and people in his constituency to participate in the jobs initiative which takes legal effect from 1 July.

Deputy Higgins is aware that the current memorandum of understanding was renegotiated with the troika - the IMF, the EU and the ECB. The renegotiations included the opportunity to have a limited jobs initiative to provide stimulation to the indigenous economy and to focus with particular impact on the tourism-hospitality sector where the Government reduced VAT from 13.5% to 9%, applied a zero rating to travel tax and provided temporary relief in respect of PRSI reductions for employers.

Deputy Higgins is also aware that in respect of subordinated bondholders, significant amounts of money have been extracted from them and the Minister for Finance has made it perfectly clear that the circumstances surrounding senior bondholders in Anglo Irish Bank are in a different category to senior bondholders in Bank of Ireland and AIB. It is the Minister's intention to raise that matter with the ECB in the autumn.

In so far as the interest rate reduction is concerned, I agreed with the other leaders that the officials on our side, together with the Minister for Finance and his colleagues, will continue to carry out the remit and responsibilities which they have been given, which is to bring about a conclusion to the principle which has already been agreed of an interest rate reduction being applied to countries that are in the EFSF bailout. From that point of view I was heartened by the response from European leaders to how the Irish people have measured up to the economic challenge, which we will beat - I hope with the help of Deputy Higgins.

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