Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The Government set out 18 months ago a very clear strategy for its intention to restructure and re-engineer the promissory notes in order that the State would not have to borrow €3.1 billion every March and repay it based on these notes at high interest rates and continue to do so until 2023 and beyond to an amount of €48 billion in all. The whole Government was involved in the connections needed to build an understanding at European level, including the Minister and officials of the Department of Finance, the Governor and officials of the Central Bank and everybody else. I am glad that happened. It is a relief that markets are now looking at Ireland and seeing that we will need €20 billion less than was factored in in the next ten years, which makes the country even more attractive as a location for investment. That will be the big impact. Standard & Poors has changed Ireland's rating slightly even since this happened. A great deal of interest has been expressed from the United States of America in the decision and the signal it sends. The consequence is that it will have an impact on our rate of growth, tax position and deficit and lead to jobs and stability.

That is where the real focus is. It is not acceptable to have an unemployment rate of 14.6%, more than 400,000 on the live register. It is a challenge of unprecedented proportions. Added to that are the numbers who have left, who have emigrated or who had no sense of hope here. The restructuring and re-engineering of the promissory notes is a major economic relief. It will impact on the budget deficit and on our growth rate and tax position. The €1 billion saved will bring us €1 billion nearer to getting our deficit down to 3% by 2015. We are only six weeks into the new year and I do not want to speculate in any way on the situation for next year's budget. The Government's emphasis is on jobs, growth and freeing up access to credit. Semi-State bodies, banks and other lending institutions will now have greater leverage to access credit themselves to pump into the economy, either through lending or investment which will have an impact on jobs. Hopefully some of that can filter down to the Deputy's constituency which has had a difficult time in recent years.

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