Brendan Smith (Cavan-Monaghan, Fianna Fail)

I join with my colleagues in the Fianna Fáil Party in expressing support for the Bill. I note with interest that we are discussing this important legislation on a particular anniversary, namely, 21 September, exactly two months to the day since the 21 July eurozone summit at which Heads of Government and State and Finance Ministers agreed provisions aimed at strengthening the European Union's capacity to defend and protect the euro by bolstering and expanding the European Financial Stability Facility established in May 2010. As Deputies will recall, the EFSF was originally established by the Ecofin Council to safeguard financial security in the eurozone by raising funds in capital markets to finance loans for euro area member states.

In addition to measures to prevent contagion and improve the eurozone's crisis management, agreement was reached on a second buy-out package for Greece and improved rates and terms on current bailout packages for Portugal, Greece and Ireland. Not only was the 21 July announcement important for the eurozone and wider 27 member European Union but it was long overdue for Ireland. Everyone knew the interest rates being imposed on Ireland were penal and unnecessary and before the Government assumed office work commenced on achieving lower rates.

I was impressed to hear the Polish Finance Minister, Mr. Jan Vincent-Rostowski, make this very point during a recent interview on RTE's "This Week" radio programme. Mr. Vincent-Rostowski specifically described the 6% rate being charged on funds made available to Ireland and others as "penal". To his credit, he and the Polish Government said as much nine months ago. Fortunately, the Polish Government used its term as holder of the EU Presidency to strongly advance the case for reducing these interest rates. It could be argued that the Polish Government invested much more diplomatic effort and energy in reducing the interest rates than the Taoiseach did. It is incredible that the Taoiseach has gone an unprecedented six months without having any significant bilateral discussion with a eurozone colleague at a time of major crisis in Europe and further afield.

In addition to describing the interest rates previously applied to Ireland as "penal", the Polish Finance Minister stated in his interview that he considered the European Union's "bouncing" of Ireland into the European Financial Stability Facility last November to be a mistake which need not have happened. This is an interesting take on our position from an EU partner and one that strongly suggests that the standing in which Ireland was held among our European partners was not as low or as poor as the Taoiseach, Tánaiste and some Ministers continue misleadingly to claim.

I will refer to a few European issues on which I have some experience. Deputy Joe McHugh spoke eloquently of the difficulties facing the fisheries sector and its economic potential. In the short time I served as a Minister in the Department Agriculture, Fisheries and Food, the former Minister of State, Mr. Tony Killeen, and I achieved very good outcomes in regard to quota and total allowable catches. I recall that in December 2008 when France held the EU Presidency it was particularly determined to abolish what are known as the Hague preferences, which are of major importance to Ireland for securing top-ups in species. We successfully fought a battle to retain the Hague preferences. Moreover, we obtained for Ireland increases in quota and total allowable catches for the various species in each of the years we served in the Department. As Deputy McHugh will be aware, only last December we secured a 67% catch for boarfish, a new species being developed and one in which the Killybegs Fishermen's Organisation has invested considerably in co-operation with the Marine Institute and Department. Ireland has by far the highest allowable catch of this species in the European Union.

On the agricultural side, Ireland, on both an official and a political level, was always to the forefront in working with like-minded member states on the issues of the day. This may have meant working with a small group of countries consisting of France, Germany and three or four other member states on a particular issue or working in a group of 12 or 13 member states which shared similar views on specific issues. On all such occasions, Ireland was to the forefront and I, in my capacity of Minister, chaired many of these groups and worked with like-minded member states on specific issues such as milk quota or World Trade Organisation talks. It is patently wrong to suggest that Ireland did not participate to the full at political or official level in the deliberations of the European Union.

On 1 May 2004, during Ireland's Presidency of the EU, ten countries acceded to the Union while two further countries acceded subsequently. In 1990, when there was scant determination among its European partners to assist its reunification process, Ireland, which held the Presidency at the time, was at the forefront in supporting Germany in its efforts to reunite the country. These are only a few of the issues with which Irish Presidencies under Fianna Fáil Party Governments were involved. It ill behoves Ministers to continue misleading members of the public on the participation of previous Governments at European Union level.

Returning to the announcement made on this day two months ago, it is more than regrettable - it is irresponsible - that foot dragging and uncertainty at European level was allowed to delay the full implementation of the decisions taken at the summit. It is yet another example of inaction by European leaders, a continuing inaction that has created uncertainty on world markets and resulted in widespread commentary about the very existence of the euro. As my colleague, Mr. Pat The Cope Gallagher, MEP, pointed out recently in a debate on this issue in the European Parliament in Strasbourg, we now demand, at the very minimum, a co-ordinated initiative across the European Union to implement the decisions of 21 July to help restore confidence to the markets. Any of us who reads or listens to commentary on this issue will be well aware that confidence is badly needed.

By passing this Bill, which amends the European Financial Stability Facility Act 2010, legislation which was brought before the House by the late Brian Lenihan, we are playing our part in that process. I compliment the Minister and his officials on introducing the legislation. Nonetheless, while we all welcome that we are now, hopefully, in the final stages of turning the 21 July announcement into action, it is regrettable that delays at EU level have held up the process for this long. I understand President Barroso sought assurances last August from EU Heads of Government and State that they would accelerate national parliamentary procedures to ratify the revised EFSF framework agreement by the end of September. In allowing such a long timeframe, the EU institutions have failed to convey or underline the seriousness and urgency we should give to the implementation of the 21 July decision. This legislation is essential not just for Ireland's situation but also in trying to re-establish some credibility for the EU and eurozone decision-making process.

Speaking of credibility and decision making, I echo the call made by my colleague, the Fianna Fáil finance spokesperson, Deputy Michael McGrath, when he said the Government should clear up the confusion about the value to Ireland of the reduction in the interest rate and the impact it will have on the 2012 budget. We now have two announcements from the EU on our interest rates: the one we are debating here, arising from the eurozone summit of 21 July to reduce the interest rate on the EFSF funds, and last week's proposal by the European Commission to reduce the interest rate charged to Ireland on funds under the EFSM. As my colleague, Deputy McGrath, has observed, different figures have been proposed for how much money the interest rate reductions on the EFSF and EFSM funds will save Ireland in 2012 and over the remainder of the drawdown period. Different figures were given by the Taoiseach and the Minister for Finance, Deputy Noonan, and by the head of the NTMA, Mr. Corrigan, so we need clarification on those issues.

The Government needs to make clear how the saving on interest payments fits into the overall budget arithmetic. People are preparing for a difficult budget, but they deserve to have the fullest possible information on how difficult that budget is likely to be. It is also important that the Government starts to flesh out the potential costs and consequences to the Irish taxpayers and economy of its decision to explicitly commit this country to engaging in serious discussions on the common consolidated corporate tax base, CCCTB, as part of this deal. The Minister, Deputy Noonan, said quite recently that there would be no change to our corporation tax. That is the message that must be hammered home at all stages. In my limited experience of Government trade missions to the United States, the one question one was always asked was whether Ireland was fully committed to the retention of the current rate of corporation tax. At a time when, thankfully, we are the number one destination in the world for foreign direct investment, it is important there is no uncertainty with regard to our determination to retain our corporation tax rate.

The forecasts of modest economic growth in the EU made only some months back are now being revised downwards, unfortunately. Against this background, the passage of this Bill by the end of the month is essential, and my party supports the Government in its efforts.

One thing that is often forgotten about in the overall commentary on the eurozone and the importance of stability in Europe is the fact that we are a trading country that is dependent on exports. We export 80% of what we produce in Ireland, which is double the European Union average, and there is the difficulty inherent in the fact that our major trading partner has a different currency from us. All of these things make life difficult for us as a country, and it is to our credit that in 2010, despite the observations of some Members of the House, we had the highest level of exports ever, reaching a value of €161 billion. I hope that will be surpassed this year.

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