Micheál Martin (Cork South Central, Fianna Fail)
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Last Thursday, the ECB announced an interest rate increase stating it was doing so to ward off the threat of inflation. What is incredible about this is that even the ECB officials themselves have acknowledged that the recent blip in inflation is temporary and driven mainly by commodity prices. At a time when European economies are very fragile, will the Taoiseach agreed this increase is unwise and at worst likely to cause very serious damage to weak fragile economies throughout the eurozone, and that it has the hallmark of repeating a similar decision made in 2008 when the ECB raised interest rates after the worldwide recession had begun causing serious damage in the name of fighting already disappearing inflation?

I agree that central banks need to be independent from governments and politicians but we have the right to comment when it makes wrong decisions. Will the Taoiseach commit to the House to raise our concern with the ECB on this interest rate rise and further rises planned in the coming months and our concern that this decision will undermine recovery in weak economies and cause considerable hardship to thousands of families throughout the country? Will he agree to raise with other states the possibility of changing the legal basis underpinning the ECB to force it to give greater concern to issues of economic growth and employment as well as inflation when making its decisions?

Enda Kenny (Mayo, Fine Gael)
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This is a matter of serious concern to those who will be affected as a consequence of attempting to repay mortgages and those struggling to repay mortgages. We are well aware of the numbers on tracker and variable mortgages and the difficulties they are now experiencing. When Mr. Trichet made this announcement he also made the comment that the ECB had act according to its remit. Its primary function, as the Deputy is aware, is to keep down inflation. The Minister of Finance is looking at the consequences of this for mortgage payers here and the fundamental responsibility of seeing that people have their homes protected and a conclusion is arrived at insofar as their mortgages are concerned.

Comments have been made about the ECB and its functions in legislation in so far as it impacts on growth rates and economic development throughout EU member states with particular reference to the eurozone. In this context, these matters were discussed to a point by the Heads of Government meeting in Brussels and we will continue to do so. For my part, I will raise the impact of interest rates following this decision. The understanding in general conversation is that this might not be the only interest rate increase this year. The ECB has mentioned that possibility. This is obviously a serious concern for people in this country who are struggling, are in negative equity or are just about able to meet their mortgage repayments.

The answer to the Deputy's question is "Yes", I will raise the matter, and it is important to be able to comment about the consequences of a bank that is independent. In the context of economic growth factors, this matter was discussed at the last Heads of Government meeting in so far as how the programmes for each country can impact on their individual growth rates, which is obviously very important from Ireland's point of view as well.

Micheál Martin (Cork South Central, Fianna Fail)
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During the recent election campaign the Taoiseach and his party stated clearly that State-supported banks would be prevented from passing on interest rate increases such as this to mortgage holders. Since then, of course, the Government has announced a further major increase in State support for the banks. Will the Taoiseach tell us what he is doing, as promised, to ensure that this interest rate increase will not be passed on to mortgage holders?

Enda Kenny (Mayo, Fine Gael)
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The Minister for Finance will bring forward a number of proposals in respect of the consequences for mortgage holders in this country. The Deputy is aware of the announcement made today by AIB regarding huge job losses over the near term, which is obviously a very serious concern for those directly affected. We made the point that in reducing the scale of the banks in this country, it would be necessary to dispose of assets which would reduce their overall costs and, therefore, bring them more into line with what they should be doing to provide a proper banking structure and to be able to lend into the economy. The Government considered the overall banking position, made its decision known and that decision has generated positive comment internationally. At last, the first decisive steps have been taken to provide a banking structure that works and we will move on now to enabling banks to lend into the economy so business can be stimulated, growth fostered and jobs created. That is the fundamental commitment in the programme for Government.

Micheál Martin (Cork South Central, Fianna Fail)
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Do I have more time?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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I am sorry but the Deputy's time is up.

Micheál Martin (Cork South Central, Fianna Fail)
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Will it be passed on to mortgage holders or not?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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I cannot allow that. I call Deputy Adams.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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No straight answers.

Gerry Adams (Louth, Sinn Fein)
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Would the Taoiseach agree that the IMF statement yesterday is proof that the IMF-EU deal is a disaster for Ireland? As revealed yesterday, the figures this deal is based on are false. The deal and the international lending agreements which underpin it are good for the big bankers and their bondholders, but very bad for Irish taxpayers. However, at every turn the Government recommits to this deal. It is bad enough on the part of Fine Gael but the Labour Party and its leadership recommit to it at every turn. Labour Party Ministers are briefing on more austerity policies, more cuts and more pressure on working people, public servants and the unemployed. Seo páirtí James Connolly, mar dhea.

Would the Taoiseach not make different political choices? Paying people's money into the banks means less money for growth and no money for jobs, front line services and for those who depend on them. It means there is no ability to pay back the burden of the banking debt. Is fear cliste é an Taoiseach. Tá fhios aige nach féidir an dubh a chur ina gheal ach ar feadh seala. Citizens elected the Taoiseach for change but níl athrú ar bith ann. There is no change in people's pockets and no change between this Government's policy and that of the last Government. Would the Taoiseach accept that the debt placed on the State by the last Government through the EU-IMF deal is unsustainable and that he, as our representative, must call a halt to it?

Enda Kenny (Mayo, Fine Gael)
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In the past eight or nine days the response internationally has been positive in respect of the decisive decisions taken by the Government.

Billy Kelleher (Cork North Central, Fianna Fail)
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You were opposing them three months ago.

Enda Kenny (Mayo, Fine Gael)
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The IMF has recognised the validity of the Government's call for a reduction in the interest rate, which would be important but is only part of the evolution of discussions that are taking place here. International banks and commentators, the European Union, the European Commission and the IMF have recognised the fundamental importance of the decision taken by the Government about the banking sector. That is a start, but it is only the first step in a long process.

In respect of what we must do in this country, yesterday the Government agreed on a comprehensive analysis by every Minister of how money is spent, the value for that money and how effective it is in dealing with the problems with which it is intended to deal, so there is a proper process in place with regard to the preparations for the budget for 2012 and so we do not find ourselves in a position where Ministers, as has been the case for time immemorial, do not know what type of cut will apply or whether any value has been achieved for money spent. This is a serious change in how we look at the expenditure of taxpayers' money.

The IMF made it clear to both parties in Government, when it met with them before Christmas, that it would be entirely in order to transpose sections or sectors of the IMF-EU programme, one with another, provided compensatory amounts were produced and clarified. The two Ministers with responsibility for finance are meeting with the troika today. From that point of view we want to focus not only on cuts, but also on growth and stimulus in our economy, to provide some certainty and confidence for people who wish to get back to work or hire new workers and to get into a position where we can grow our economy. As the Deputy knows, there has been some public comment about the content of the Government's jobs initiative which will be published in the next few weeks.

Gerry Adams (Louth, Sinn Fein)
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In case the Taoiseach does not know it, the IMF halved its growth prediction to 0.5%. It is reckoned there will be a shortfall of €1 billion in the Exchequer finances. The Taoiseach talks about a jobs budget. Will he introduce more cuts? He has given away the National Pensions Reserve Fund to the big banks. We proposed that it should be used for a jobs stimulus package. The Taoiseach is very clear about robbing the poor, universal social charges and so forth.

Alex White (Dublin South, Labour)
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Get off the stage.

Finian McGrath (Dublin North Central, Independent)
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You had your chance last week.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Can we have some order please?

Micheál Martin (Cork South Central, Fianna Fail)
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Steady lads.

Gerry Adams (Louth, Sinn Fein)
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Why will the Taoiseach not consider a third tax band? Why can he not consider exploiting natural resources for the common good, including offshore oil and gas resources? Why can he not tell the IMF and the EU that we wish to run our own affairs? We cannot always blame Fianna Fáil for what Fine Gael and the Labour Party is doing. Fianna Fáil has its responsibility but the Taoiseach is now repeating every mistake it made.

Enda Kenny (Mayo, Fine Gael)
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It is important to point out that we are talking about a jobs initiative, not a jobs budget.

Barry Cowen (Laois-Offaly, Fianna Fail)
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Another U-turn.

Enda Kenny (Mayo, Fine Gael)
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Budgets indicate ranges of tax increases, tax changes and so forth. This jobs initiative was well flagged before the general election. It is part of the programme for Government to stimulate the indigenous economy and give a sense of confidence. I recognise, as does the Deputy, that there is a loss of consumer confidence in this country. The savings ratio of Irish people is very high at present. If one is to restore confidence so there can be job creation and so we can create opportunities, of which there are many, it is important that the Government provides an initiative in that regard. That is our focus. That includes looking at the question of providing some assurance for credit in respect of business where they cannot get it at present. I am quite sure Deputy Adams, in his capacity as a new Deputy, will have had constituents tell him that their overdrafts have been cut, that they cannot get credit and that despite the talk that goes on, there is little credit going out there. We need to be able to assure business with some degree of certainty that credit will be made available to it. That will happen now because of the decisions made in respect of the banking sector. We are talking about a jobs initiative as distinct from what the Deputy calls "a jobs budget".

Barry Cowen (Laois-Offaly, Fianna Fail)
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What the Taoiseach calls "a jobs budget".

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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The Taoiseach is the author of that.

Enda Kenny (Mayo, Fine Gael)
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I hope all of those Deputies who are responsible for driving this economy and our country up on to the rocks will support that initiative when it is published and when it is announced in the House, as distinct from the carry-on in which they used engage in spending taxpayers' money with considerable amounts of spin and all the rest of it. From that perspective, this is a case of the Government taking a lead in deliberately providing incentives to stimulate the economy where jobs can be created, where opportunities can happen and where people can have some sense of confidence that what we are about is giving them that hope of which we have spoken.

In the context of the IMF-EU deal which constrains our country, the hand of cards with which we have been left is not as good as we would wish and I must play them in the best order in which we decide in the interests of the people and of the country, and that is what we will do.

Finian McGrath (Dublin North Central, Independent)
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Is the Taoiseach aware that 27 young persons died in State care over the past year? Is he aware that seven of the deaths were from suicide, four were drugs related and two were homicides?

Would the Taoiseach agree there is a serious situation where young people are dying while in child protection services? Why is there no outcry when these poor and vulnerable children die? Children are suffering because of this. Is the Taoiseach aware that the courts are increasingly being asked to rule on the rights of grandparents where parents cannot care for their children?

Is the Taoiseach aware that the solution lies in the children and parental responsibility Bill, which is awaiting Government action? If these young people were from affluent families, imagine the response. Does the Taoiseach accept that the death of any child is shocking? Today, I ask the Taoiseach what he will do about it. What programmes will he put in place to prevent such deaths? What will the Taoiseach do to protect these children and end these deaths, and will he bail out these children?

Enda Kenny (Mayo, Fine Gael)
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It is an unfortunate term Deputy Finian McGrath used at the end of his question. I am aware of the numbers of children who have died in State care. This was a matter that I, as Leader of the Opposition, raised on a number of occasions with the previous Minister for Health and Children, the Minister of State with responsibility for children and youth affairs and Minister for Justice, Equality and Law Reform. That is why one of the decisions taken by the Government was to appoint a full Cabinet position dealing with children and youth affairs. The Deputy can take it that the Minister for Children will report to the House in respect of this matter after consultation with the Minister for Health and the Minister for Justice and Law Reform.

There is no disagreement between the Deputy and me in respect of the impact of suicide on families. It does not affect only persons from more disadvantaged areas of society. Those who live in so-called affluent areas are also subject to the tragic phenomenon of suicide. The Minister of State, Deputy Kathleen Lynch, is dealing directly with that as a part of her mental health portfolio as a central issue as part of a health programme. This is one of her priorities.

I do not have the details of the 27 cases Deputy Finian McGrath mentions. Having raised it previously, I am aware of it. I would be happy to supply him with a full Government response in the context of what the new Minister will propose to do.

Finian McGrath (Dublin North Central, Independent)
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I thank the Taoiseach for his response. I reiterate strongly that a higher percentage come from disadvantaged families and disadvantaged areas.

Does the Taoiseach accept that there is a major problem with the deaths of persons who have recently left State care? Is he aware that ten young adults who had recently left State care lost their lives? Today in the House, will he support proper after-care for such young people and can he clarify the Government's position on this? Is he satisfied with the current use of the existing resources? Is money being spent in the right places and can he give a commitment that something will be done to prevent the deaths of such children?

Enda Kenny (Mayo, Fine Gael)
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The question of young adults receiving after-care has been a sensitive issue in that there were claims that there was not any real interest in looking after children once they had passed that age and become young adults. I would like to think the State at a minimum should have a real interest in seeing that somebody who leaves State care gets continued assistance and help in life. The children first Bill, where a number of these policy issues that Deputy Finian McGrath correctly mentions are under consideration, will be dealt with by the Minister for children here.

It is a difficult position, when one speaks to one of these young people who has left State care and finds himself or herself lonely, isolated and seemingly without help. We must change that. That is an area on which the new Minister will focus.