Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I am pleased to have an opportunity to reply to the debate. The Government genuinely welcomes the debate that took place today and yesterday and the suggestions that were put forward.

Yesterday, my colleague, the Minister for Finance, Deputy Noonan, outlined recent developments in the economy and the nature of the short-term and medium-term economic challenges we face. He also outlined the Government's priorities and the actions we are taking to address the challenges. He emphasised the fundamental strengths of the economy which will enable us to grow again. I welcome the constructive input into the debate from many of the Members of the House.

In closing the debate, I wish to address some of the comments raised. First, it is important to emphasise and reiterate a couple of key messages on behalf of the Government. While the challenges ahead are not to be understated, both domestically and internationally, there is, however, a clear understanding and agreement that we in Ireland have moved into a position of stability where we are now engaged in the task of rebuilding the country. Considerable progress has been made.

It was never the case that there was one simple magic bullet solution to the collapse of the economy from 2008 to 2010 where, in effect, 14% of GDP was wiped off the slate of this country. The solution was always going to have to be taken on an incremental basis. It is worth saying that progress is made step by step. That is the progress on which we must build to sustain the economy through these difficult and challenging times.

The progress made is well known. The eighth quarterly review of the EU-IMF financial assistance programme was successfully completed at staff level today. By our count, 160 conditions have been met by the end of the third quarter of 2012. That will clear the way for the disbursement of €2.4 billion in programme funding in the coming months. It is worth saying that the funds that come to this country as a result of the programme do not come en bloc on a yearly basis. They come every quarter as a result of the report that is made to the board of the IMF, the European Commission or the European Central Bank. The fund which is given to us that keeps the economy going is predicated on the report of the troika based on the progress we make. That was clear in the report issued today.

Our bond yields at all maturities have come down considerably since early summer. It is forgotten that when the Government came to office the nine-year cost of Irish paper was 15.5%. The current cost is 4.6%. The cost of German paper is approximately 1.3%, which is the level that should exist in most cases for nine-year money. However, there has been an astonishing reduction in the cost of debt from 2011 to now. We want to reduce the cost further. It is the ambition of the Government to return to the markets. This year alone more than €5.5 billion has been raised on the markets, admittedly in short-term money, but it is an important incremental step in fully re-engaging with the markets again.

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