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

As the Deputy is aware, the Government has been working extremely hard to secure a deal on the Irish bank debt with our European partners. Detailed work will continue in order to maximise the benefit of any deal to the Irish taxpayer. Negotiations are continuing and I advise the Deputy that conclusions on their outcome are premature at this point. I have stated previously that I am working to try to achieve a solution before the next scheduled instalment on the promissory note in March. It would be very 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.

The focus of the on-going 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, the interest rate applicable etc., as well as potential avenues for the wider bank debt deal and the impact of these options on the 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 will 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 our European partners in regard to legacy bank debt is being availed of and that every effort to maintain the issue of the Irish bank debt at the top of the European agenda is being made. I remain confident that an agreement can be reached.

The numerous references made in Europe to Ireland's special status in regard to discussions on these matters gives comfort, and the Irish Presidency will build on this. The recent comments of the European Council President, Herman Van Rompuy, following his meeting with the Taoiseach and Tánaiste, about 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.

I am glad to say we meet with strong appreciation of our situation and are able to have very constructive dialogue on our approach to this question. While these negotiations are ongoing we will consider all viable solutions which will achieve an improvement in the position of the Irish State with respect to the promissory notes.

As the Governor of the Central Bank stated recently to the Oireachtas Joint Committee on Finance, Public Expenditure and Reform, there has been a very 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 the 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, and that work is ongoing.

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