Enda Kenny (Mayo, Fine Gael)

Deputy Higgins has raised two maters. The first is valid. I raised the issue of vulnerable communities in Northern Ireland with the Deputy Prime Minister. I made him aware that in so far as the Government is concerned, we seek to work with the British Government and members of the elected Assembly and Executive in Northern Ireland with particular reference to the vulnerability of communities, especially where there are continued efforts to thwart the peace process. I note the comments of many public representatives from all shades of public opinion for restraint and calm. I pointed this out to the Deputy Prime Minister and I pointed out to him our interest in keeping the connection with the United States alive in so far as assistance under that fund is concerned. This is not only a demonstration of continued interest but also a matter of leverage for further EU funding. I made it known to the Deputy Prime Minister that it is important in the interests of Britain to continue to have facilities and support made available for communities in Northern Ireland. We discussed the question of a reduction in the corporation tax rate in Northern Ireland. This is a matter for the Assembly and the Government and the Exchequer in Britain to makes decisions on. That may come about in an all-island sense.

The second point was typical of Deputy Higgins. Let me assure him that no one in the Government is terrified of asking any leader direct questions. I have contact with them when appropriate at Council meetings. It was a part of the process, whereby the leaders agreed that a reduction in the rate should be applied in principle, that there were discussions with all of them at some stage. As the Deputy is aware, it requires agreement from the lending countries. One of these countries has still not given agreement in respect of a reduction in the rate for Ireland. This is where the discussions continue and I hope the matter can be brought to a conclusion. The Deputy is aware, as I have stated repeatedly, that the responsibility for concluding that debate was transferred to the Ministers for Finance because the stress tests on the Irish banks had not been completed when the leaders of Governments were to deliberate on the matter in Brussels. It is a case of making the leaders directly aware that Ireland is measuring up and that we have met the conditions of the bailout scheme, and making them aware of the developments in our economy, with particular reference to the balance of trade surplus, the growth in exports, the flexibility of our workforce and the stimulus provided for the indigenous economy to grow. These are all reasons people should continue to have confidence in the country. We will continue the discussions with particular reference to France in respect of the reduction of the interest rate.

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