Eamon Gilmore (Dún Laoghaire, Labour)

We are proceeding at a number of levels with discussions on the bank debt. These discussions have taken place, first, between the Ministers for Public Expenditure and Reform and Finance, Deputies Brendan Howlin and Michael Noonan, and the troika and, second, at an official level where officials from the Irish side have been working with the European Commission and the European Central Bank on ways in which the Irish bank debt can be alleviated.

What is happening is that the Taoiseach and I have been engaged in discussions with European leaders to secure political support for a deal on Irish bank debt. There are a number of ways in which this can be done. First, there is the possibility of a Europe-wide solution to banking debt generally, which would be of benefit to Ireland. Should there be such a solution, we will obviously have to take care that it is one which suits the Irish situation. There are several variables, one of which is the situation in the Spanish banking system. It may be that a solution will be found which is translatable to Ireland. However, we must be careful not to hang our hat entirely on the Spanish situation because what may be done in Spain or what may be applicable to that country may not be directly applicable to Ireland. Therefore, we must make sure we have an arrangement that is suitable to the Irish situation. On the other hand, it is possible that a particular arrangement will be arrived at in respect of Ireland along the lines of what we have been discussing both with the troika and at a technical level with the institutions.

We are continuing our work in this regard. I intend to be in London later today for talks with the British Foreign Secretary, Mr. William Hague, which will include a discussion of this issue. I plan to travel to Paris very soon. We are continuing to have discussions at European leadership level with a view to securing the best possible outcome for the taxpayer. What is important is the result we achieve. What we are hoping to do which everybody in the House should and, I am sure, does support is to get the best possible outcome for taxpayers in order to alleviate the huge burden placed on them by the tying of bank debt to the State.

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