Eamon Gilmore (Dún Laoghaire, Labour)

I thank Deputy Ross for his acknowledgment and congratulation of the Government on the progress to date. The Government has been in discussions for some time with the troika on the overall size of the promissory note, the entire issue of €31 billion. The object is to reach a point in those negotiations where a paper will be produced with the troika which will address the issue in its totality. The issue of the promissory note which falls due on 31 March clearly has to be dealt with. As I have said in an earlier reply, the Minister for Finance has indicated that the approach being discussed to deal with this is to settle it by way of a long-term Government bond.

As Deputy Ross says, the whole issue is framed in the context of debt sustainability for the State. I do not think there is any secret about the fact that this time last year, when the new Government took over, this country was teetering on the edge of a cliff and the debt sustainability of the State and its future economic well-being, was very much at risk. Over the course of the past year, we have pulled this situation back from the edge and we have succeeded in a series of negotiations, with the troika in particular, to achieve changes in the terms of the bailout arrangement which were negotiated prior to our entry into Government. These changes in the terms included the issue of the interest rate, a number of changes which allowed the Government a greater degree of flexibility in our own recovery process. I refer also to the current discussions about the promissory note due on 31 March and the wider issue of the promissory notes in their totality. We are confident of achieving a good outcome from those negotiations.

At this stage, the Government has brought about stability in our economic situation and financial state and we now need to move on to recovery, to ensuring that jobs and investment are created. Therefore, in parallel with the discussions between the Government and the troika, we have also actively engaged in a strong marketing strategy in order to secure investment for the country. Part of that strategy is the work being done by the Taoiseach over the past days and today in China.

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