Michael Noonan (Limerick City, Fine Gael)

The fourth quarterly review of the EU-IMF programme of financial support for Ireland takes place from 11 to 21 October. The review will comprise a series of meetings to evaluate all the elements of the programme covering fiscal developments, including the comprehensive spending review and potential asset disposal, the macroeconomic outlook and progress on commitments in restructuring the financial sector and structural reform. It is clear that for the review the primary focus will be on our performance against the targets due to be met by the end of the third quarter of 2011 and assessing progress on targets due to be met in coming quarters. I have already signalled that notwithstanding the substantial consolidation already carried out - in particular, the amount being delivered this year - difficult decisions in respect of future consolidation remain. There is no doubt that the budget for 2012 will be another difficult one. Under the terms of the EU-IMF programme memorandum of understanding, an adjustment of at least €3.6 billion is to be implemented next year. However, as I have signalled, consolidation above this amount may be required if we are to adhere to the general Government deficit target set for 2012. That will become clearer in the coming weeks in the light of the continuing assessment of the most up-to-date information available.

The Government has repeatedly stated its commitment to the programme targets. Meeting these conditions on time and target is the best way to ensure we emerge successfully from the programme. That will mean that we can return safely to the financial markets for funding in as timely a manner as possible. This is one of the principal objectives of the programme. The Government's commitment to the programme does not stop us from seeking and agreeing changes to certain aspects of it. We have already done this successfully. The Government will continue to do so at the appropriate time.

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