Billy Kelleher (Cork North Central, Fianna Fail)

We know why the interest rate reduction came about. It was because other economies were struggling and they were given a reduced rate of interest as well. The quid pro quo was given to Ireland subsequently. In the interests of ensuring this country can access markets and stand on its own two feet as quickly as possible, the Government must negotiate with the mandate it was given last year on this issue. However, there are conflicting views coming from the Government continually. The Minister of State can dismiss me as much as she wishes but some Ministers have stated the matter is inherently linked to a "Yes" vote and that if we received a "Yes" vote it would strengthen our hand in any re-negotiation of the debt burden in Europe. Some weeks ago the Taoiseach stated he would not have "defaulter" written on his forehead. I am unsure who is right or wrong but these statements are not compatible. We need a strong Government to do this work and, rather than have a quick chat with Chancellor Merkel on the telephone, we need solid diplomacy at its best. We need the Government to plead the case in the context of the promissory notes and the private debt saddled on the people.

The European Union has an obligation to stand with smaller countries. Reference has been made to a partnership approach. No one country runs the European Union. It is a partnership approach and the European Commission has failed dismally. It is the most castrated organisation I have seen in a long time. Effectively, it is non-existent. First, there was the Merkel Sarkozy axis and now we have the Merkel Hollande axis. Under the various European treaties the European Union has an obligation to uphold and vindicate the rights of smaller countries. This is written in the treaties but the Commission has failed abysmally.

We need a resolution to this issue and the quicker it happens, the better for Ireland and Europe. I put it to the Minister of State that her Government is saying opposite things at the same time and this is having a negative impact on the view the people have of Europe. More important, it gives the Europeans and those opposed to addressing the issues underlying our difficulties an opportunity to opt out and not give us what we believe to be fair and just, that is, a re-negotiation to lighten the burden on the people and the country in order that it can return to prosperity and start contributing again.

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