Micheál Martin (Cork South Central, Fianna Fail)

In the past few weeks there have, to say the least, been mixed messages from the Government in regard to Ireland's obligations on the promissory note issue. As the Taoiseach knows, the promissory note mechanism was created and agreed as banks were not allowed to fail. Depositors needed to be protected and no other European Union facility existed at the time to facilitate the recapitalisation of banks.

There is no doubt that fairness and justice require Ireland gets a fairer deal on the restructuring of its bank debt. However, in the past number of weeks up to six Government Ministers, including the Taoiseach, have been to the fore in upping the stakes and raising expectations. Most notable was the intervention of the Minister for Social Protection, Deputy Joan Burton, in the Financial Times where she clearly linked a deal on the promissory note to the forthcoming referendum. Whether the Taoiseach likes it, that link has now been embedded in the public mind because of that intervention and those of others.

There is no doubt the ECB read the article with considerable interest. The Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte, told The Wall Street Journal some time ago that a deal would be struck in the next few weeks and before the repayment deadline of 31 March. Media reports, undoubtedly led by Government sources, have referred to the Government still being hopeful of a deal on the promissory note before the end of March.

Yesterday, Commissioner Olli Rehn very unambiguously said such a move would be unacceptable. His stance mirrors that of the ECB, it would appear, which is also resisting any delay in payment. We were led to believe that the Governor of the Irish Central Bank would raise the issue with the ECB, only to be told afterwards it would not. The Taoiseach uses what has become a well worn phrase, namely: "Paddy likes to know." With the greatest of respect, Paddy does not know what is going on in regard to this issue.

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