Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Ceann Comhairle's office for selecting for discussion what we can all agree is an important issue. We welcome the news that emerged from Brussels overnight regarding the possible extension of the term of the maturity of the loans drawn down under the European Financial Stability Facility, EFSF, as well as today's news from ECOFIN to the effect that the same extension would be considered in respect of European Financial Stabilisation Mechanism, EFSM, funding under Ireland's bailout agreement.

While I look forward to the Minister of State setting out the Department of Finance's position, the news raises the question of why an extension has not been provided to date. In July 2011, the Heads of Government and Heads of State agreed in a communiqué to extend the maturity of EFSF money for Greece to up to 30 years and to apply the same maturity provision to Portugal and Ireland. Since then, I have asked the Minister for Finance by way of parliamentary questions in the Chamber about why the provision has not been extended to us.

In February 2012, the Minister, Deputy Noonan, confirmed that, following on from the July 2011 communiqué, the Council of Ministers approved in October 2011 a European Commission proposal to increase the maturity of individual tranches of lending to Ireland and Portugal from a minimum of 15 years to up to 30 years. Clearly, this proposal has existed for quite some time. The July 2011 communiqué was quite categoric that the extension would apply to Ireland, yet we are being told in January 2013 that the Eurogroup and ECOFIN have asked that the extension of maturities be examined. In some respects, we are not making progress. We have gone from the extension being a certainty to something that requires examination.

I hope the Minister of State will set out the benefits, as the Government sees them, of extending the maturity of the various loans drawn down under the EFSF and the EFSM. The people at home will want to know whether an extension will make a difference to the types of budget we will see in the coming years. For example, will it result in a significant reduction in the country's level of interest payments and will it make our overall debt position more sustainable?

It should be pointed out that Ireland has been drawing down some funding under both of these streams for a long time. For example, we have drawn money from the EFSM over a 30-year period and money from the EFSF for 25 and 29-year periods.

We are beginning to do it. I would welcome it if the Minister of State set out on behalf of the Department what he regarded as being the benefits to Ireland of the extension of the maturity. The potential benefits are significant. We all want Ireland to return to the international bond markets as quickly as possible.

I would also like the Minister of State to deal with the issue of the concessions extended to Greece in November that have not yet been extended to Ireland. For example, Greece negotiated a deferral of interest payments on EFSF loans for a period of up to ten years. Such a deferral would bring immediate cash benefits to Ireland were it extended to us.

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