Enda Kenny (Mayo, Fine Gael) | Oireachtas source

We take every opportunity to engage with our European colleagues about the improving conditions - albeit challenging - for us in Ireland. The IMF report the Deputy mentioned specifically mentioned Ireland as one of the few countries with an improving growth rate of 1.4%. The fiscal advisory council recommended that more challenging decisions be made to reach our deficit target at an earlier date. The Government has set out its programme. We have a memorandum of understanding with the troika, which funds us on an emergency basis. That memorandum of understanding has been changed through negotiation and a sense of trust between the two Ministers and the troika to good effect. Examples include the change in the minimum wage; the removal of more than 300,000 people from liability for the universal social charge; the opportunity to reduce VAT rates in the hospitality sector and thereby create 6,000 jobs; the non-raising of income tax, which would be an obstacle to creating jobs; and the continued foreign direct investment. That investment arises because of the stability of the 12.5% corporation tax rate. There have been announcements by organisations such as Paddy Power and the Kerry Group, and others will be made in the future.

I do not accept the Deputy's argument that this is a case of destroying our country. The Deputy should consider what we have done in the past 18 months in the reforms and restructuring the Government has set out to do as part of our programme. It is designed to deal with our public finances at home and to negotiate more favourable terms from a European perspective both in regard to the promissory note legacy, which as the Deputy knows required a payment of €3 billion a year for ten years, and in regard to the major decision made by the 27 Heads of Government to break the link between sovereign debt and bank debt. That was considerable progress made by the European Union and we now need to see it implemented in terms of what it can mean for this country.

Nobody from this side has ever said that this would mean a particular amount on a particular date. What has been pointed out is that we need to get the best deal possible for our taxpayers. We got the agreement of the troika that the proceeds from any State assets the Government decides to sell can be ploughed back into sustainable development, employment and job opportunities. There has been increased economic activity in this city in the past 12 months, with the throughput of so many people and the benefits to the local economy. Things have improved but clearly we still have a long way to go. The time ahead is challenging although the prize is great.

I do not accept the argument the Deputy makes. He comes in and rants and raves with his histrionics and fantasy economics every week. Yesterday in Sligo I witnessed the Croke Park agreement in action. The Department of Social Protection now has staff including people transferred from the HSE and FÁS. Those people, who are unfortunately unemployed and drawing social protection benefits in one way or another, will now have a whole new opportunity to change direction and to have provided for them an opportunity to achieve work. Rather than having the old concept of the dole office as a place where someone goes to get the money and then leaves, a very different process is being put in train here. These people can be encouraged, their experience can be noted and their talent or motivation to better themselves can be given an opportunity to be followed through. Whether it be in a local office or at a European level, the strategy of the Government is the same - to improve the lot of our people, to deal with restructuring and reform so that we can have our public finances put in order and to continue to negotiate with our colleagues in Europe.

This would have been sorted out long ago if Ireland was the only problem. Clearly the Spanish economy has difficulties and that is a much larger economy than ours. The growing interest in Catalonia for independence is a matter of concern to the Spanish Prime Minister. Clearly the economy of Italy is enormous. The economy of Greece and others are challenging. The conclusion of implementing the decision of 29 June has different implications for those countries. The EU Commission has published its paper on banking union. The first element of that is expected to be in place by 1 January - I hope it can be. While Commissioner Rehn felt it might be possible to conclude Ireland's element of this bank sustainability review by the end of October, I always said it is more important to get it right in terms of the maximum benefit for the people than to have it completed by a particular date.

I assure the Deputy that the ongoing discussions and negotiations are intense and complex. I am not one for suggesting we will not get a conclusion here. The big decision has been made. It now needs to be implemented and that is where our focus at leader level will be.

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