Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The Cabinet sub-committee on mortgage arrears was set up to deal with the issue of mortgage distress being caused to significant numbers of people throughout the country. It is not the case that the Government can direct the banks to do what it would wish. We want the two pillar banks, which were previously dysfunctional and have been downsized, to be able to return to engagement with the markets and thus to commercial banking. The sub-committee on mortgage arrears made a valuable input to the options prepared by Government for dealing with mortgage distress and arrears and to its communication with the regulator in the Central Bank, which expressed the urgency for him to require the banks to submit their plans to him for appropriate regulation and pointed out that should he require further powers of authority we would provide him with them. In terms of my wish to extend the remit of the sub-committee to other areas of banking, a number of major issues will need to be dealt with into the future, and I intend to address these.

At a European level - this relates to the point made earlier by Deputy Ó Fearghail - the European Council, which is made up of the Heads of State and Government of the 27 member countries, made a decision on 29 June requiring that the vicious circle of sovereign and bank debt be broken. This was a major change in direction. At its last meeting, the European Council put flesh on this principle by saying that nothing can be done about this until such time as the legal framework has been put in place. That legal framework is to be in place by 1 January next. The Ministers for Finance of the euro group were then mandated to discuss the conditions, operations, mechanics and modalities of how this will operate. I expect this will become effective during the course of 2013. However, this does not mean that Ireland's particular circumstances, which have been recognised as being special because it was first out of the block and has already recapitalised its banks, cannot be worked on and brought to a conclusion which would reflect the decision of 29 June whereby Ireland's financial position will be reviewed with a view to, as provided for in the wording of the Council decision, improving its debt sustainability. Deputy Adams will be aware that the Minister for Finance is pursuing the issue of the promissory notes through negotiation with the European Central Bank.

I was remiss in not replying fully to Deputy Ó Fearghaíl's question on the health issue. The Dolphin report and all relevant documents in terms of claims for and against location of the hospital will be published. The planning papers dealt with by Mr. Martin and Mr. Clear, who were mandated by the Minister to reflect on the proposal, will also be published. In so far as our vision for Europe is concerned, our aim, through the Joint Committee on European Affairs and the Minister of State with responsibility for European Affairs, is to restore Ireland to being a respected member of the European Union, one which contributes to its future and prosperity. Ireland contributed cogently at the various meetings of officials and Ministers on the six pack, two pack, compact for jobs and so on, which is reflected in a particular way in the remarks of other leaders and agencies, be it the IMF or otherwise.

There have been seven or eight detailed analyses of Ireland's performance thus far. The people are pragmatic and understand that sometimes hard decisions must be made in the common good. Our vision for Europe is for Ireland to work within the European Union to bring about the Single Market, prosperity under the digital market and to deal with the opportunities for countries to be run properly so that as an exporting nation other economies can buy our goods, which has been reflected in the double digit percentage exports in a number of areas. If every country was in a position to run its own economy well within the Union, its potential would be increased enormously.

It is hoped that during Ireland's Presidency from 1 January next, with 1,500 to 1,600 meetings to be held, Government and all the agencies will work diligently to make progress on the decisions that need to be taken to increase trade prospects with places such as Canada, Japan and the US and to address the potential of the Single Market, digital market, data protection and all other areas wherein there is enormous scope. I hope that provides the Deputy with a flavour of the Government's vision for the Union. There are currently 18.5 million unemployed in the European Union. This position will not improve unless politicians at leadership level make decisions that will impact on it. We hope to play our part in that.

See this speech in context