Brian Hayes (Dublin South West, Fine Gael)

This touches on the questions raised by Deputy Doherty. I very much welcome the constructive contribution from the economists on the question of the promissory notes, and I assure the Deputy that the presentations and remarks to the joint committee will be examined in detail. However, it would not at all be appropriate for me to unilaterally instruct the Central Bank and the troika that the scheduled payment will not be made at a time when we are engaged in a process to review options for a reduction in the overall burden to the State of restructuring our banking sector by varying the cost or timing, or both, of the repayment of that debt.

The Deputy will be aware that the Government made a commitment, along with all 27 member states, at the euro summit in October last year. For the information of the House I will put that commitment on the record:

As far as our general approach to private sector involvement in the euro area is concerned, we reiterate our decision taken on 21 July 2011 that Greece requires an exceptional and unique solution.

All other euro area Member States solemnly reaffirm their inflexible determination to honour fully their own individual sovereign signature and all their commitments to sustainable fiscal conditions and structural reforms. The euro area Heads of State or Government fully support this determination as the credibility of all their sovereign signatures is a decisive element for ensuring financial stability in the euro area as a whole.

The Irish Government will honour this commitment and will ensure that we work with our EU partners to address the overall cost to the State of resolving the difficulties in our banking sector, including the promissory notes.

Additional information not given on the floor of the House

Further, I am not convinced that in the event that it may be deemed advisable to make the promissory note payment due under the current schedule in March, it will weaken our position in the ongoing review. It is simply not my experience or that of the Government that this is how things work within the European Union or the eurozone. I remind the Deputy that our external partners are engaging in these discussions notwithstanding the fact that a payment of €3.06 billion was already made in March 2011.

While it would certainly be beneficial to have the matter of the promissory note payments resolved and agreed by the end of March, there is no guarantee that this will be achieved in that time frame. The Deputy will appreciate that there are a number of parties involved directly and indirectly in the process. He will also appreciate that the situation in the eurozone remains unsettled and is changing on a daily basis. In this environment, and given the nature of advocacy and the decision-making process in the EU, I do not expect this matter to be concluded quickly. However, I assure the Deputy that everything that can be done will be done to ensure a positive outcome for the State.

See this speech in context