Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The Government has always put forward the view that the negotiations, which are quite tortuous and very complex, are about restructuring and re-engineering the scale of debt placed on the backs of the Irish people. That has been the thrust of Government activity in this matter. The Deputy is aware that the decision of 29 June, into which Ireland was written, was to break the link between sovereign debt and bank debt. Many people said this could never happen. One should bear in mind, however, the progress the country has made in difficult times, the recognition of the scale of the burden on the Irish taxpayer since the blanket guarantee was given and the recognition of assistance for Ireland.

The view put forward by Commissioner Rehn is that the process should be concluded by the end of October. Clearly, the ongoing discussions in respect of Spain's borrowings for its banks and to deal with its deficit problem are not discussions over which we in Ireland have control. The important point is that the conclusion must involve the right and best deal for Ireland's economy and people. I am more concerned about that than adhering to the deadline that was mentioned as a target by Commissioner Rehn. I pointed out some time ago that there would be some slippage from that.

The Deputy is aware that the Minister for Finance, Deputy Noonan, was in Paris, Rome and Berlin last week prior to the informal meeting in Cyprus and that good progress was reported in that regard.

I will not comment on headlines in the newspapers about different ways of dealing with this; suffice it to say that the focus of the discussions, which are tortuous and very complex, is on the restructuring and re-engineering of debt such that it can be lessened for the people, including the taxpayer. It is a case of getting the very best deal for the people and not just a question of adhering to an intended target date that may not result in the best deal that could eventually be on offer.

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