Micheál Martin (Cork South Central, Fianna Fail)
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I take the opportunity of Leaders' Questions to the Taoiseach today to raise the horrific murder of PSNI officer Ronan Kerr in Omagh at the weekend. We have our political differences but in terms of the rule of law and democracy I believe the Taoiseach and I are on the same side. I know that the Taoiseach and the Government share our and our party's abhorrence at the callous and shocking murder of police constable Ronan Kerr. In that context, will the Taoiseach agree that the perpetrators of such evil actions have no place in a civilised society and must be challenged and confronted at every opportunity?

In the aftermath of such an horrific murder it is important that a clear, united and unequivocal message be sent from this democratic Chamber that those responsible for this cowardly atrocity have no mandate and do not act in the name of the Irish people. The murder of Ronan Kerr is a direct assault on the peace process itself. No terrorist gang can be allowed to dictate to the Irish people or undermine our desire to live and share this island in harmony and friendship.

It is important that our national Parliament is seen to stand firmly and absolutely behind the peace process. It is for this reason that I ask if the Taoiseach would agree that it would be an apt response from this House that we pass an all-party agreed motion to make clear our abhorrence of this murder in Omagh. There is a precedent in this regard because in March 2009, following the murder of PSNI constable Stephen Carroll and two British soldiers, the Dáil passed such a motion. The murder of PSNI constable Ronan Kerr is no different to, and is equally repulsive as those which took place in 2009. I request that the motion to which I refer be taken following statements. Fianna Fáil has tabled a motion but would withdraw it in favour of a joint motion agreed by the Whips.

Enda Kenny (Mayo, Fine Gael)
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I agree that a motion in respect of which there would be unanimous agreement should be taken following statements. This matter was already discussed in the context of the parliamentary questions I answered earlier. There will be an opportunity for Members to make their views known during the statements that will be taken following the Order of Business. There is no reason why we should not send out a strong, clear and unequivocal condemnation by way of a motion unanimously agreed by the House. As the Deputy indicated, this is not the first occasion on which we have been obliged to resort to taking such action.

I regret that Members are being asked to speak in a debate to which they would never have believed they would be obliged to contribute. It is important to bear in mind the psychology behind what happened. A meeting was held, a decision was made and an instruction was given to someone who took an oath to be a member of the cell, society or group responsible for what occurred at the weekend. That individual, perhaps in conjunction with others, was then sent to perpetrate this cowardly act and a young man's life ended as a result. It is a slur on the humanity of every person in this country that this should have happened. We condemn this act unreservedly. There is no one in the House who will not share that sentiment.

I agree with Deputy Martin that we should send out, by way of statement and agreed motion, a unanimous, unequivocal, strong and clear message that this kind of cowardice will not be tolerated and is condemned unreservedly by Dáil Éireann and by every Member elected thereto by the people.

Micheál Martin (Cork South Central, Fianna Fail)
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I thank the Taoiseach and agree wholeheartedly with him. As stated during Question Time, the transformation of the police service in Northern Ireland is one of the outstanding legacies of the peace process. The changed relationship between An Garda Síochána and the PSNI has played a strong and central role in that transformation. Many gardaí who engage on a daily and weekly basis with their counterparts in the PSNI share people's horror and sadness with regard to what has occurred. The Minister for Justice and Equality articulated the position very well in that regard.

When one listens to certain commentators, it occasionally appears that there is some doubt with regard to the absolute and strong co-operation between - and the agenda shared by - the Garda Síochána and the PSNI in the context of tracking and apprehending the evil individuals who perpetrate crimes of this nature. Is the Taoiseach in a position to assure the House that the two forces will continue to work in a synergistic fashion to ensure that the peace and quality of life enjoyed by all citizens on this island will be protected?

Enda Kenny (Mayo, Fine Gael)
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I am in a position to provide such an assurance. As indicated on Question Time, I spoke to the First Minister, Mr. Peter Robinson MLA, and to the Deputy First Minister, Mr. Martin McGuinness, MLA. In addition, the Minister for Justice and Equality spoke to his counterpart in Northern Ireland, Mr. David Ford, MLA. I have also spoken to the British Prime Minister and pledged the Government's support for both the Northern Ireland Assembly and the British Government in the wake of this act of cowardice. I assure Deputy Martin that the level of co-operation between the Garda and the PSNI - both of which the Deputy and I support - is at an all-time high.

I received a security briefing yesterday from the Garda Commissioner. From his time in Government, the Deputy would have experience of such briefings. The Tánaiste and Minister for Foreign Affairs and Trade and the Minister for Justice and Equality also attended the briefing to which I refer. We were provided with an assurance that there is active and intense co-operation between the Garda and the PSNI and that this will continue. The resources necessary to underpin this high level of co-operation will be provided.

It is clear from what we heard at the briefing that in the past, lives have been saved and dastardly acts have been prevented. It is most tragic that in this instance a young man lost his life. The Garda Commissioner has confirmed that the co-operation and involvement between Garda Síochána and the PSNI is what the Deputy, I and everyone else would expect it to be, namely, of the highest calibre possible. There is no difficulty with regard to the transmission of information, where relevant, between the Garda and the PSNI. I hope that the intensity of the relationship between the two forces will ensure that the perpetrators of this murder, whomever they may be, will be brought to justice and punished accordingly.

Gerry Adams (Louth, Sinn Fein)
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Mar atá a fhios ag an Taoiseach, labhair muid faoi dhúnmharú Rónán Kerr níos luaithe agus dúirt mé go seasann Sinn Féin leis an Rialtas agus go bhfuilimid uilig le teaghlach Rónán Kerr ag an uair bhrónach dheacair seo. Bhí mé sa Tuaisceart Dé Domhnaigh agus inné ag obair le Máirtín Mac Aonghusa agus daoine eile agus táimid go han-soiléir go bhfuil pobal na tíre in éadan an dhúnmharaithe sin.

It is appropriate that the Government has allocated time for a debate on the murder of Ronan Kerr. We discussed this matter earlier on Question Time. It is of the utmost importance that we should continue to make it clear that we stand in opposition to this murder and that we stand with the Kerr family. During the statements that will follow the Order of Business, we will have the opportunity to spell out our views in detail and to chart a way forward.

I wish to ask the Taoiseach about the ongoing economic situation. In the recent general election campaign, he clearly stated that the current EU-IMF bailout deal is bad for Ireland and bad for Europe, that the financial markets are closed to Ireland principally because investors are concerned that any further capital injections into the banks will sink the economy and that the bailout plan would not restore confidence in Ireland because at its heart is a commitment to continue the failed banking policies of the Fianna Fáil-Green Party Government. The Taoiseach made these comments only a few short weeks ago. However, he has taken every opportunity - in this Chamber, at meetings at European level and at various summits - to state that he is committed to the EU-IMF deal.

I do not understand what kind of negotiating position this represents. It strikes me as ridiculous for the Taoiseach to continually give away his negotiating position. Many individuals have informed me that it is totally unacceptable that he is doing the exact opposite to that to which he committed only a few short weeks ago. The Irish people are being obliged to pay for that. Will the Taoiseach explain this departure and will he throw some light on the Government's negotiating stance, le do thoil?

Enda Kenny (Mayo, Fine Gael)
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Aontaím gur chóir go mbeadh cáineadh an-láidir curtha amach ón Teach seo i leith dhúnmharú Rónán Kerr. Mar a dúirt mé, bhí mé ag caint lena mháthair, Nuala, inné agus táim fíor-bhuíoch di as ucht na crógachta agus as ucht an mhisnigh a léirigh sí sa chaoi a labhair sí amach faoi dhúnmharú a mic. Tá súil agam nuair a bheidh mé thuas amárach, in éineacht leis an Chéad-Aire agus an Leas-Chéad Aire agus Teachtaí eile ón Teach seo, gur comhartha láidir a bheidh ann ag éirí as an díospóireacht a bheidh againn inniu agus a rún a rifear go hiomlán ar son gach Teachta sa Dáil seo.

It is not a case of changing our position. The actual position is that we have been dealing with six dysfunctional banks. We proceeded down a path of confusion and uncertainty for a long period and people became completely frustrated by the fact that the previous Government would not provide leadership or point the way towards a point where the country would be in charge of its economic destiny once again. That is why the Government last week made its decisions in respect of the banking sector. This brings clarity and certainty. We will now have two pillar banks which will be the bulwark of the future banking sector in Ireland. That is very clear and gives certainty. This is now recognised internationally and by independent commentators. The ECB, in its statement following the Government's decision about the banking sector, confirmed it will provide ongoing liquidity to the Irish banks, which is of extreme and fundamental importance for business and for confidence in Ireland.

We must rebuild our connections and contacts with our counterparts in Europe. The Tánaiste and all members of the Government will involve themselves in this important work. Our European colleagues understand how important it is, in a European sense, to show flexibility in the path Ireland must follow and will follow. The Deputy is aware that the EU/IMF mission starts today and will last until 15 April. Much of this will consist of technical discussion of the intricacies of the instruments. The Government will discuss elements of the programme for Government, such as the upcoming jobs initiative programme which will have an impact on the indigenous economy. It will stimulate investment and provide confidence so people who have been saving, because of their fear of future uncertainty, will have an opportunity to spend in the Irish economy to grow confidence and hope and provide jobs.

Gerry Adams (Louth, Sinn Fein)
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Níor thug an Taoiseach freagra ar na ceisteanna a chuir mé air. Seo na focail a dúirt sé. These are his words. I did not make them up. These are what people voted for. The Taoiseach talked about the five point plan. It strikes me that we are engaged in a five point U-turn. Here are other words people voted for:

Fine Gael in Government will force certain bondholders to share in the cost of recapitalising troubled financial institutions. This will be done unilaterally for most junior bondholders. It could be extended as part of a Euope-wide framework for senior debt, focusing on insolvent institutions like Anglo Irish Bank and Irish Nationwide that have no importance.

The Government gave €3 billion of the people's money to those two institutions. There needs to be some clarity so people can understand what the Government is doing and have confidence in it. The Taoiseach's party said not a red cent would be committed to the banks unless they imposed losses on their bondholders, yet last week the Government poured another €24 billion of the people's money into those banks. What price manifestos, election promises or election commitments? A very high price indeed, especially for people who are in economic distress at this time. The manifesto of the Labour Party, the other party in government, has been shredded. The Irish taxpayers are paying, not just for the Government's U-turns, but also for the private greed of bankers.

There is no sense of our coming out of this. I am, by nature, an optimist and I believe we can find a way out of our difficulty. This party has put forward suggestions for how to do that, but not by throwing good money after bad.

Enda Kenny (Mayo, Fine Gael)
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The Government's decision of last week brought about certainty and clarity regarding the Irish banking sector. This is very important for business. It has been received in that light by international commentators, the European Central Bank, the European Commission and the International Monetary Fund. It was about time someone made a decision in respect of the Irish banking sector.

The Government looked at the positions of six dysfunctional banks and a country that could not borrow money on the international markets, whose banks could not borrow money and where every cent coming in was being provided from abroad. The Government's decisions give clarity and certainty to that. This has been followed by clarity from the ECB in respect of its ongoing commitment to liquidity in the Irish banking system, which is important in getting confidence back into our economy. Thursday's payments of €2.5 billion and €530 million from the Exchequer to Anglo Irish Bank and Irish Nationwide arise from the promissory note made by the previous Government. I have said on many occasions that there is no point in not telling the people what the facts of life are.

Micheál Martin (Cork South Central, Fianna Fail)
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Except during an election campaign.

Enda Kenny (Mayo, Fine Gael)
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It is fact of life that for the next ten years these payments will have to be made.

Dara Calleary (Mayo, Fianna Fail)
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Not a red cent.

Enda Kenny (Mayo, Fine Gael)
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When we opened the press this is what we found, or part of what we found.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Was Bertie Ahern not in the press?

Enda Kenny (Mayo, Fine Gael)
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Deputy Adams knows we could deal with the Ulster Canal and many other issues in the north west and elsewhere in the country if we did not have this imposition and burden, but that is a fact of life. The decisions made by the Government bring clarity and certainty to the banking sector. That is important.

The IMF/EU troika will be here until 15 April and they will involve themselves in technical discussions as to where the country is in respect of the programme agreed by the sovereign State of Ireland with the IMF and the EU. In opposition, we voted against this agreement on the basis of its interest rate being too high-----

Michael McGrath (Cork South Central, Fianna Fail)
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On the basis that Fine Gael was on the opposite side of the House at that time.

Enda Kenny (Mayo, Fine Gael)
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-----and because of other elements of the deal, notably the cost of the banking restructure. We did not pursue the issue of interest rate reduction until the bank stress tests were carried out. These have been robust and the most severe ever carried out. They speak for themselves.

Gerry Adams (Louth, Sinn Fein)
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The Taoiseach was not elected to do that.

Enda Kenny (Mayo, Fine Gael)
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That brings clarity to that position. With certainty in respect of the banking sector and ongoing liquidity, we move on from here to deal with our European counterparts in rebuilding the reputation and status of this country, which was allowed to slide, unfortunately, to a position where suspicions existed about Ireland and where many of the comments made by our politicians were not believed, for valid reasons in many cases.

Shane Ross (Dublin South, Independent)
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I agree with the Taoiseach on one point. Plenty of clarity and certainty has been introduced. The clarity and certainty is that the Government has utterly surrendered to the IMF and EU. They know that, we know that and everybody knows that. "Default" is, apparently, the word that cannot be mentioned in this Chamber.

Is the Taoiseach happy that the greatest cheerleaders for his policy and for the statements coming from his side of the House are Fianna Fáil? His support is coming from the previous Government. Very few people can see the difference, if there is any, between this Government and the previous one in their attitudes to the banks, despite all the those promises. That is the great disappointment for those of us who have been observing this for a long time.

The Taoiseach cannot paint the opposition to Government policies as something coming from the technical group and Sinn Féin. Does the Taoiseach read the Lex column in the Financial Times? It will tell him that people out in the market think Ireland is being governed by people who do not understand markets. Let me read four lines from the Lex column of last Saturday:

In the Irish case senior bondholders have been given a blank cheque by Irish taxpayers, the result of an Irish Government decision in late 2008. No other Government is likely to make that mistake.

Another Government has made that mistake. The Taoiseach's Government has done so, by wearing the clothes of the Government of Brian Cowen. Why do senior bondholders have to be treated in the same way as deposit holders? They are a completely different creature. Senior bondholders make a decision, take a risk and make an investment. Depositors take their money to a bank with no sophisticated investment techniques or knowledge and put their money in the bank to be safeguarded. There is an issue of trust against an issue of investment.

There is no sense of our coming out of this. I am, by nature, an optimist. I believe we can find our way out of difficulty. My party has put forward suggestions for how to do that. However, it will not be by Yet we are saying we rank them pari passuand they should never be stung. The logic of this is that the Irish taxpayer must pay for the senior bondholders. The article in Lex column, which is a market-led column, states that senior bondholders are the luckiest people in Europe and that they cannot believe their luck at the current Irish Government pursuing identical policies to those of the last Government in terms of insisting on paying them when no other Government in the world would do so.

Enda Kenny (Mayo, Fine Gael)
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A man of Deputy Ross's capabilities and intelligence will understand that the policies are not the same. The Government has not made a mistake; it has made a decision, namely, to reduce the number of dysfunctional banks and to create two pillar banks which will be the bulwark in terms of where we go from here. This differs from the position taken by the last Government. It is a decision which brings clarity and certainty to the Irish banking sector. It is a matter of fact that commentators must comment. The Lex column is not the sovereign Government of this country. Unfortunately, because of the constraints placed on the people of this country as a result of the IMF-EU deal, the options available to the new Government were limited. However, one must make decisions. The Government made a decision which will ensure clarity and certainty in the banking sector. In discussions with the European Central Bank, it provided certainty in respect of ongoing liquidity into the Irish banks. That is important. I accept it is not the end result in terms of where we want to be, which is, in a position to say goodbye to the IMF in terms of the deal and to return to the bond markets, thus regaining control of our economic destiny. Given the obstacles in our way, difficult decisions will have to be taken into the future. We must rebuild the nature of our relationship with many of our European counterparts and we are working to do so. The space now provided allows for this to happen.

Deputy Ross will be aware that there have been significant contributions from subordinated bondholders. The point was made at least week's press conference that there is a clear difference between senior bondholders in Anglo Irish Bank and Irish Nationwide Building Society and those in the pillar banks, namely, Allied Irish Banks and Bank of Ireland. The Government was clear in terms of its pronouncement in this regard.

Shane Ross (Dublin South, Independent)
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I thank the Taoiseach for his reply. I would have thought a man of the Taoiseach's intelligence and knowledge would be aware of the serious dangers of setting up two major banks of that sort. The Taoiseach and I am sure everyone else in the House will remember what happened when Allied Irish Banks and Bank of Ireland dominated the market in the past, namely, they ran a cartel or, at least, a duopoly which is the reason they have become the tyrants of the financial system here. By retreating into that position the Taoiseach is inviting them to regain the type of territorial strength they had in the past, thus being in a position once again to crucify the consumer in order to gain increased bank profits. Is the Taoiseach happy with that?

Olivia Mitchell (Dublin South, Fine Gael)
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Should we keep another bank going?

Bernard Durkan (Kildare North, Fine Gael)
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The consumer is being well crucified now.

Enda Kenny (Mayo, Fine Gael)
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The Government, as part of its programme for Government, will move on to the issues that need to be addressed in respect of governance of the Irish banking sector. Clearly, changes are needed. I am sure Deputy Ross is aware that foreign-owned banks located here will provide competition and certainty within the sector. Deputy Ross may also be aware that many international commentators are now looking with some degree of confidence at the decisions made by the Government in terms of bringing clarity and certainty to the banking sector. That is important. We are no longer proceeding on a path of confusion.

Deputy Ross will be aware that people in this country like to be told the scale of the problem. From this point of view, the people understand the constraints and difficulties of government. Governments must make decisions on to how to proceed rather than just comment. In this regard, the Government has brought clarity and certainty to the banking sector. We must now move on to discussions in regard to the interest rate on the IMF-EU deal and other costs associated with that structure.

It is important to understand that what we are seeking from Europe is not more but less money with greater flexibility to achieve the same target. The Government is concentrating on providing a jobs initiative programme which it will publish in due course. This initiative will provide opportunities and incentives to stimulate our indigenous economy, thus providing that much needed sense of confidence and hope for job creation and allowing employers to recruit labour and getting our country moving. Other countries have moved on; their recession is over. We face an enormous range of difficulties. Courage is needed if we are to move forward in accordance with the programme for Government.