Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

Having listened to the contributions to this debate, I am of the view that there is some common ground on both sides of the House. We are agreed that every effort must be made to reduce the cost to the Exchequer of the promissory notes. We are also agreed, to various degrees, that the State should continue its interaction with our European partners as to how this can be achieved.

As many Deputies will have noted from this evening's media commentary, the ECB is considering a proposal from the Government as part of our ongoing discussions in seeking to reach an agreed position on resolving the promissory note issue satisfactorily. The leaking of some elements of the ongoing discussion is unfortunate. The Minister for Finance has taken action to secure the stability of the Irish Bank Resolution Corporation, IBRC, in the face of these leaks. He has appointed persons to assume the powers of the board for the interim.

The ongoing discussions with the ECB illustrate that the Government has taken the initiative in dealing with our problems, has taken difficult decisions and will take other decisions that are necessary to get the country back on track as quickly as possible. We must ensure, and our European partners must have regard to the need to ensure, that Ireland's capacity to repay its debts is maintained and enhanced.

The Minister for Finance accepts that the necessary adjustments in State expenditure have impacted and will impact on people's level of services and living standards. He also accepts that the impact of the adjustments must be fair and proportionate. He accepts that it is galling to have needed to pump State resources into supporting the financial sector. We must return to the financial markets for funding. We are continuing to work to re­establish our financial credibility.

We need to return to growth and prosperity for the good of our people. The Government is committed to delivering a return to a successful and vibrant economy. We are targeting to exit the programme of assistance from the troika by the end of this year.

Turning to the motion before the House, it is clear that all parties to the current arrangements have something to gain from the current discussions and from an agreed approach to the resolution of the issue. It is in this context that the Government has been working extremely hard to secure a deal. I reiterate that we are optimistic that an arrangement, agreeable to all parties, can be found in the format of the current discussions. The key objective of any new arrangement will be to make the banking-related debt more sustainable. This is central to the Irish position in all negotiations with our European partners.

I am satisfied that any potential agreed arrangement on the promissory notes reached will benefit this country, improve our debt sustainability position and represent a major step in facilitating an early and sustained return to the financial markets.

In the current environment, it is not realistic to consider default as an option or to assume that the Central Bank or the ECB would continue to fund the bank in the circumstances described above. The essence of the Government's amendment to the motion before the House is that an approach centred on agreement is a more effective approach to the gunboat diplomacy proposed in the motion.

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