Brendan Howlin (Wexford, Labour)

I will try to be as expansive and as clear and open as I can be.

Negotiations are taking place between the troika and our officials today and will take place between the troika and the Minister for Finance and myself tomorrow. It may be poor strategy to hold negotiations in parallel with a debate in Parliament. Nevertheless, we should answer direct questions directly.

A view was expressed by the troika from the very beginning of our negotiations, when we first came into government, that any State assets had to be used to retire debt. We trenchantly put it on the agenda from the beginning that we wanted, in accordance with the NewERA proposals, to deleverage money. I am bemused by some comments from the Opposition back benches which assume that there are endless capital resources available. Capital to invest in jobs is very scarce. If we can get some capital to invest in jobs it will be an extremely important component part of our economic strategy.

Deputy Fleming is correct when he says the actual signed memorandum did not move this issue on. We had an understanding with the troika, as the Taoiseach indicated to the House, that they would be willing to listen to proposals for sensible investment on a case by case basis. That position has hardened somewhat because the same conditionality has applied to other countries. I do not think I should be more expansive than that because I do not want to weaken my negotiating position. The Government is anxious that we would have the capacity to use some of the money we get from the sale of State assets to invest in jobs and growth.

I will deal with the other issues when I contribute again.

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