Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I propose to answer Questions Nos. 1 and 2 together.

As the Deputies are aware, the Government has been working extremely hard to secure a deal on the Irish bank debt with our European partners, and detailed work will continue to ensure that positive moves in Europe are harnessed to maximise the benefit to the Irish taxpayer. The focus of the ongoing detailed discussions has progressed to consideration of all options in regard to the promissory notes, such as the source of funding, the duration of the notes and the interest rate applicable, as well as potential avenues for the wider bank debt deal and the impact of these options on IBRC. This work is one of the Government’s key priorities and will remain a key focus during the EU Presidency.

As previously advised to the House, the terms sought by the Government are those which achieve the best possible outcome for the Irish taxpayer. It is not possible to give guidance on the timing or potential outcome of the discussions, as to do so could impede our ability to achieve the best possible results, but every effort is being made to expedite the ongoing process. I am satisfied that every available and appropriate opportunity to advance Ireland’s position with regard to legacy bank debt with our European partners is being availed of and that every effort to keep the issue of the Irish bank debt at the top of the European agenda is being made.

I have stated previously that I am working to try and achieve a solution before the next scheduled instalment on the promissory note, scheduled for March. The numerous references in Europe to Ireland’s special status in regard to discussions on these matters gives comfort and the Irish Presidency will build on this in the coming months. The recent comments of the President of the European Council, Herman Van Rompuy, following his meeting with the Taoiseach and Tánaiste in respect of his support for a positive outcome in our negotiations is to be welcomed. I have always stated that our problems are part of a wider European dilemma and any solution to address the Irish situation must be as part of an overall eurozone and global solution. The shift in European policy in terms of breaking the vicious circle between the banks and the sovereign is to be welcomed and represents a major step forward.

It would be difficult for Ireland to make a payment on the promissory notes, and so we continue to work on a deal with our European partners to resolve this issue. I am glad to say that we meet with strong appreciation of our situation and are able to have very constructive dialogue on our approach to this question, and I believe a deal is likely in advance of the March deadline.

As the Governor of the Central Bank stated yesterday to the Oireachtas Joint Committee on Finance, Public Expenditure and Reform, there has been an intensive process of discussion and negotiation on this matter, which is one of the main thrusts of the Government’s policy in Europe. It is not easy to find a generally acceptable solution and an initiative of this type must take into account both the statutory position and wider policy stance of the ECB. We have been working carefully to build understanding and confidence around a set of proposed transactions designed to deliver for Ireland.

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