Dáil debates

Wednesday, 15 June 2011

11:00 am

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 1: To ask the Taoiseach if he has spoken to the Greek and Portuguese Governments with the purpose of examining the way the three States affected by bailouts may be able to help each other. [14505/11]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 2: To ask the Taoiseach the formal bilateral meetings rather than brief discussions he has held with other heads of Government. [15014/11]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 3: To ask the Taoiseach the matters which he has requested be placed on the agenda for the next meeting of the European Council. [15015/11]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 4: To ask the Taoiseach if he will consider a fact-finding visit to Greece in the near future in view of the likely consequences of events there for Ireland and the parallels between our two countries in terms of the economic and financial situations. [15321/11]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 5: To ask the Taoiseach the issues he intends to raise with his European counter-parts at the forthcoming European Council meeting in Brussels on 23-24 June 2011. [15322/11]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 6: To ask the Taoiseach if he will consider convening a fringe meeting with his counter-parts in Portugal, Greece and Spain at the forthcoming European Council meeting in Brussels to discuss areas of common interest. [15323/11]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Question 7: To ask the Taoiseach the issues he intends to prioritise for the meeting of EU heads of Government in the coming weeks. [15348/11]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Question 8: To ask the Taoiseach if he will receive any heads of Governments or official representatives of foreign Governments between now and the end of July 2011. [15369/11]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 9: To ask the Taoiseach if he will give details of his updated schedule of bilateral meetings with other heads of government for the period up to the end of 2011. [15386/11]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 10: To ask the Taoiseach the arrangements in place in his Department regarding the scheduling of official visits. [15390/11]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 1 to 10, inclusive, together.

The proposed agenda for the meeting of the European Council on 23 and 24 June is a wide-ranging one, covering economic issues, migration and asylum, and international questions. Economic policy issues will include the making of country specific recommendations on foot of the recent proposals made by the Commission. These represent another step in the European semester process and are intended to inform the national budgets that member states will adopt later in 2011. The meeting is also expected to endorse an EU Presidency report on the inclusion of the Roma population in the EU, and to endorse the Council's conclusions on the launch of the Danube strategy.

Asylum and migration issues arise in the context of recent events in the southern Mediterranean area. Discussion at the European Council will hopefully give momentum and direction to the ongoing debate, including on reform of the current arrangements under the Schengen Agreement and the principle of solidarity between member states. Depending on developments, the European Council may be asked to sign off on the conclusion of Croatia's negotiation for accession to the Union.

The appointment of the future President of the European Central Bank is also expected to arise, following consultation with the ECB and European Parliament on the suitability of Mr. Mario Draghi for the post.

I look forward to meeting all of my colleagues, including the Prime Minister of Greece and the new Prime Minister of Portugal. As regards bilateral meetings, I met with Prime Minister Cameron in London on 18 April, and in Dublin on 18 May; with President Obama in Dublin on 23 May; and with Prime Minister Orbán of Hungary in Dublin on 1 June. Hungary currently holds the Presidency of the European Union. I will meet in Dublin with the President of the European Council, Mr. Van Rompuy, on 17 June, and with the President of the European Parliament, Mr. Buzek, on 12 July.

I hope to be in a position to travel to China, perhaps later this year, although of course this is a matter for agreement with the Chinese authorities. Other arrangements have not been finalised and remain under review.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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I am dealing with Question No. 1. I acknowledge there are differences between the economy in this State and the economies in Portugal and Greece. What we have in common is that we have all lost economic sovereignty and citizens have been forced to pay a debt they did not create. Is there merit in trying to build alliances? Has either the Taoiseach or the Tánaiste done any work in that regard?

In regard to the interest rate cut, will the Taoiseach put it on the agenda of the next European Council meeting? Will he explain what the Government is doing to bring about such a cut?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I do not set the agenda. That is the responsibility of Mr. Van Rompuy whom I will meet on Friday. Obviously, we will discuss a number of matters in that regard. As the Deputy is aware, the Minister for Finance has been carrying out extensive negotiations on the principle which was agreed of a reduction in the interest rate. I am sure that matter will again be the subject of discussion at the ECOFIN meeting - probably on Sunday but certainly on Monday. I am also sure it will arise at the European Council meeting next week.

Following on the mandate given to the Minister for Finance, there has been extensive contact between officials and at ministerial level in this regard. We are pursuing that as a matter of priority. I have pointed out on many occasions that the adoption of that principle into a reduction in the interest rate will not be consequential on any shift in Ireland's position on the 12.5% corporation tax rate.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I note the Taoiseach has grouped Questions Nos. 1 to 10, inclusive. I tabled four questions and if they were answered separately, I would be entitled to 24 minutes under Standing Orders. I would appreciate an opportunity to ask some additional supplementary questions because there is quite a range of questions here. The Ceann Comhairle has no power to persuade the Taoiseach to answer the questions he is asked or to stop him grouping ten questions together. The only way we can get a specific responses is to ask supplementary questions relating to the questions we have tabled.

The Taoiseach will agree that before the election he explicitly said that he would use his position as vice-president of the EPP to help persuade our European partners to change the terms of our financing. He said his meeting with Chancellor Merkel in Berlin was only the first step in a major diplomatic offensive which he would lead.

It is very clear from the Taoiseach's reply that he has abandoned such a diplomatic initiative and he needs to explain why. After three months in office, to have met only one leader who has been involved in deciding the terms of our financing is incredible and to have failed to raise the topic in that meeting is amazing. The Taoiseach would not ask the British Prime Minister, David Cameron, about a lower interest rate nor would he ask the US President, Barack Obama, about the vetoing of the burning of bondholders. He has not really met anybody else on a substantive bilateral basis in regard to a reduction in the interest rate and more sustainable terms for Ireland.

Will the Taoiseach abandon his policy of simply delegating negotiations to the Minister for Finance? Our interest rate is not even on the agenda of the ECOFIN or the eurozone meetings early next week. Any change requires the Taoiseach's personal involvement. He confirmed to me when he took office that the eurozone leaders had already agreed the 11 March communiqué about improving the terms of the financing. Three months later, we have halved our demand and have seen it slide off the agenda. Will the Taoiseach explain his strategy from here on in?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The Deputy claimed I had abandoned all diplomatic negotiations in this matter and then he asked if I would abandon the matter. There is a contradiction there. I assure the Deputy that we have not abandoned our negotiations in this matter.

In respect of diplomatic offensives, the Deputy is aware that the Tánaiste recalled all our ambassadors and called in the European Union ambassadors to explain to them Ireland's strategy which is to deal with the range of challenges before us, from moving on dysfunctional banks to creating incentives for the expansion of our indigenous economy to ascertaining the scale of meeting our commitments in terms of the troika and what programmes will have to be abandoned, maintained or enhanced. That comprehensive analysis is currently taking place.

The agenda for the Heads of Government meeting is determined by the President of the European Council, Mr. Van Rompuy, whom I intend to meet on Friday. Obviously, the discussions will encompass the major issues which confront Europe and I intend to participate fully in those discussions.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I am genuinely taken aback by the Taoiseach's responses here and over some time in regard to this issue. According to his reply, the Taoiseach will meet Mr. Van Rompuy and the President of the European Parliament and, potentially, a political trade mission to China will take place towards the end of the year.

I read during the week of clear annoyance in President Sarkozy's office about the briefing done by the Taoiseach's staff following the 11 March summit. A relatively common exchange was hyped up to make the Taoiseach look like the new tough guy in town. Those kinds of briefings are unhelpful. The French said they are waiting for overtures or for someone to say we want to meet. Why has the Taoiseach not met other European leaders who are critical on a substantive bilateral basis?

I called in the ambassadors in my time the Department of Foreign Affairs and Trade. That is not something dramatic or transformative; it is normal in terms of communicating to one's ambassadors the messages they are to articulate on behalf of Ireland in their respective countries. That is no big deal.

The Taoiseach is responsible for the commitments he made and he hyped this up. He said it was the biggest issue facing the incoming Government. If that is the case, I find it extraordinary that he has not met the key European leaders who have an impact on ensuring that the agreement arrived at by Heads of State on 11 March is delivered. The Taoiseach accepted what was on the table by the outgoing Government and ran with it. All the other European Heads of State agreed at the time that there should be better and more sustainable terms. For some reason, the Taoiseach has not engaged in a more proactive diplomatic initiative with those who are blocking it. The Taoiseach should get on an aeroplane and travel to meet them.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Since his time in the Department of Foreign Affairs, it seems the Deputy has been imbued with the requirement to travel. I have met the leaders of the Union on two occasions at the Heads of Government meeting. If the Deputy wants us to set off on a 27 nation tour on a regular basis, he would have a different story on which to comment.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I would not.

12:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The ambassadors from the European Union countries were called in by the Minister for Foreign Affairs and Trade and were given a very clear message that this country is open for business, that there is a new Government with a different set of priorities and that it is making decisions, which had been left in abeyance for years to the detriment of our people and our country, to repair the international reputation and status this country lost. That is all part of the work.

The Minister for Finance and the officials from the Central Bank and the Department of Finance have been in constant contact with their counterparts at an official level.

The Minister for Finance is accepting the responsibility handed to him and other Ministers for Finance by the heads of government to continue negotiations on the interest rate reduction.

The Deputy is well aware that when leaders attend Council meetings they do not do so on the basis of being the leaders of countries with 30 million, 50 million or 80 million people, but as equals. Obviously the Deputy wants to convey the impression that there is a new figurehead in town. The day after I was elected leader of the Government I attended the first meeting of the heads of government. Is the Deputy seriously expecting me to say I would lie down in the face of a requirement to increase Ireland's corporation tax rate and not stand up for my country and for what has the support of every party in the House? Of course, I would not lie down. If some people wish to write that up as a Gallic spat, a term I gave it, or to make it something bigger than it was, that is within their right to comment.

I attend those meetings on behalf of this country and have equal status with every other leader. The leaders do not attend on the basis of their countries' population numbers. We will continue to pursue these important issues where they should be pursued. In the meantime, we will continue to discuss and negotiate with those who have been delegated that responsibility, and I have every trust in them to achieve that.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I refer Deputies to Standing Order 42 which provides that supplementary questions may be put only for the further elucidation of the information requested and should be subject to the ruling of the Ceann Comhairle both as to relevance and to number. I do not wish to interfere each day with the working of this Parliament but it is my duty to adhere to Standing Orders. When Deputies are asking supplementary questions it is not a time for making statements but for seeking further elucidation of the information requested. If Deputies get the information, there are no supplementary questions allowed. I wish to be as flexible as possible and I ask Deputies, once again, to bear that Standing Order in mind.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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It would be easier for all concerned if ten questions were not grouped together, but I accept it is beyond the Ceann Comhairle's control.

The very important point at the core of this issue is the complete failure of the Union to take a comprehensive approach to all countries. It is actually fuelling the sense of crisis. Incidentally, I would have no difficulty with the Taoiseach conducting a nationwide tour. I am not into that type of politics, and never was.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I accept that.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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The Deputy must put questions, not make statements.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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There is a failure of collective action which is getting worse every day. Will the Taoiseach agree to contact other leaders directly before next week's summit to press them on the need to stop the endless rounds of crisis meetings and to take comprehensive action? I asked the Taoiseach if he made any attempt to put an item on the agenda but in the formal reply to the question he did not say what request he had made on behalf of the country to be included in the agenda for the next summit. Perhaps he would also answer that question.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I will meet and speak with the person who determines the agenda, Mr. Van Rompuy, on Friday. I will discuss a range of issues with him when he has clarified his proposals for the final agenda. I am concerned about the matters we have discussed here previously, such as Europe's stance towards countries that face a challenge and how best to deal with that. Obviously, I expect there will be serious discussion in respect of what is happening in a number of other countries. It might well be the case that the discussions at ECOFIN on Sunday or Monday, although I cannot confirm this, might include further discussions about the interest rate principle. In any event, I will report to the House before I go to Brussels on the outcome of the discussions with Mr. Van Rompuy and regarding the general areas to be discussed at that Council meeting. I undertook to do that and I will honour that undertaking.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Deputy Boyd Barrett has three questions in this group.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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The context for these questions is obvious. It is, as we approach the end of the Government's first 100 days in office, the objectives and hopes the Government had to deal with the most important issue facing the country, the EU-IMF deal. Is it not time to acknowledge that the strategy pursued by the Government in terms of seeking to ease the burden of this brutal deal has failed spectacularly? The strategy of being the good boys and girls of Europe and of bowing subserviently to the EU and IMF in terms of imposing austerity and putting on the backs of Irish people the private gambling debts of speculators, developers and financiers has failed. All my questions ask whether it is not time to abandon this failed strategy and consider another strategy by recognising the very stark contrast between our failure to achieve any relief from the EU and IMF and the success of ordinary Greek people taking to the streets, protesting and resisting the austerity.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Sorry, that is not a supplementary question

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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That is what the question is about.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Then ask it.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Do we not need to learn from the Greeks in particular and from the other so-called PIGS countries that have taken a different approach? We should be talking to them about how, as a result of their resistance to the EU-IMF deal and particularly the resistance of the people of those countries, the German Finance Minister is now talking openly, in the context of the Greek situation, about burning the bondholders.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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This is Question Time. Will the Deputy put a question?

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Does the Taoiseach recognise the effectiveness of the Greek resistance to this package and how it is forcing a debate among the EU authorities about burning the bondholders? It is what we all know must be done to relieve the ordinary people of this country. Should we not meet with the Greeks, the Portuguese and the Spanish to discuss that and recognise that we stand or fall together and we will only stand, rather than fall, if we resist this insane package, the austerity and the attempt to unload the speculators' debts onto the backs of ordinary people?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The Deputy's entire career has been based on resistance. His three questions ask whether I will consider conducting a fact-finding mission to Greece, if I will raise the agenda for the meeting with my European counterparts and if I will have a fringe meeting with the representatives of Portugal, Greece and Spain at the Council meeting. I have enough to do in terms of getting in there and discussing the issues that affect the country where they should be discussed.

It appears that the Deputy wishes to have the entire programme for Government implemented within the first 100 days. The strategy has not failed. We made it perfectly clear that elements of the bailout package should be changed. Negotiation took place on that and agreement was reached on changes that are to the benefit of this economy and which will, hopefully, bring a stimulus to the indigenous economy through the creation of employment and job opportunities. I also made it perfectly clear to the European Central Bank, and we reached agreement on this arising from the publication of the stress tests on the banks, that because we intended to have two main pillar banks, AIB and Bank of Ireland, there would not be a follow through in terms of burning senior bondholders in respect of those two banks. That is not the case with the subordinated bondholders. In return for that, the ECB guaranteed continued funding for Ireland irrespective of any downgrading by rating agencies.

As Deputy Martin mentioned this morning, medium-term financing would be very beneficial for every country. However, the Deputy is aware that in the European Central Bank decisions are made by the governors of the central banks in the eurozone countries. Negotiations take place with them and they obviously have their own agenda and priorities. I do not agree the strategy has failed. We did not ask to be in this EU-IMF bailout deal and our economic independence is constrained until we get out of it. That is where the Government is headed and the decisions being made by the Government will lead us to a point where we can retrieve and restore our economic independence, return to the bond markets, borrow at cheaper rates and be in charge of our economic destiny.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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There can be one further supplementary question in accordance with Standing Order 42.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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I am not trying to score political points.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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You will not be allowed to score political points. This is Question Time.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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I am asking a question and the question is about appealing to the Taoiseach to consider changing strategy-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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That is not your question.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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It is.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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It is not your question. Will you read the question?

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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All of the questions request the Taoiseach-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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To have fringe meetings.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Indeed-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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That is not a supplementary question.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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-----for a particular purpose.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Deputy Boyd Barrett should ask a different question the next time. I cannot allow you to control Question Time, making statements. There are other Deputies in the Chamber.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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I am not making a statement.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Please ask a short supplementary question or I will not call you again. I am trying to be fair to everyone.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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There is a logical connection in the questions I am asking. We should specifically meet other countries in the same plight as we are-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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That is not a question. You are making a statement. Will you ask the Taoiseach a question?

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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I am asking him-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Ask him the question.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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-----to reconsider his decision not to do that and his strategy of appealing only to the EU authorities as a whole rather than specifically making common cause with the Greeks, the Portuguese and Spanish, who are in the same plight as us. I am suggesting and asking the Taoiseach to do so on the basis that resistance by the Greek people to the EU-IMF austerity measures is proving more effective than the Taoiseach's strategy pursued to date-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Thank you.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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-----because it is forcing the German authorities-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Thank you very much.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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-----seriously to reconsider the rescheduling-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Can the Taoiseach answer the supplementary question?

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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-----of debt and the burning of bondholders. Is that not proving more effective and do we not have something to learn from the Greeks in that regard?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Deputy Boyd Barrett is very wrong and is completely out of line if he considers this country is in the same boat as other challenged countries, notably Greece. We are not in the same position, we are in a very different position. The deputy head of the IMF said recently that Ireland is heading in the right direction, that it is meeting its commitments and is proceeding along a path to get out of the IMF-EU bailout deal so that we are once again in charge of our fortunes. That has been endorsed by Commissioner Olli Rehn, by other countries, by Christine Lagarde and by a number of other people. It is completely wrong for Deputy Boyd Barrett to equate Ireland's situation with the situation in Greece. The Greek Government and the Greek people are challenged-----

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Are our people not challenged?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Yes, they are but from a slightly different perspective. I hope the Greek Government and people, with the support of all the countries of the EU, can deal with their problems. We are in a bailout situation and severe conditions are attached to it. It is causing difficulty for a number of our people but we are meeting the challenges and heading in the direction we must go to be in charge of our fortunes.

It is wrong of Deputy Boyd Barrett to equate the circumstances of Ireland with those of Greece. We have a very flexible and adaptable workforce, a strong trade surplus, strong indications of continued investment and high productivity. Our challenge is economic, caused by greed within banks, reckless lending policies and promissory notes that created a huge charge on us. As a consequence, we are in a bailout deal which we want to get out of to get back to the markets. We are now headed in that direction.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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My question to the Taoiseach was to outline the issues he intends to prioritise for the EU summit. Unfortunately, he did not answer that question so I must ask a number of key supplementary questions. It beggars belief that the Taoiseach did not come in here today and say that his priorities for the EU Heads of State meeting were the conditions laid down by the EU-IMF-ECB diktats, a demand for the interest rate to be cut and burning of the bondholders. Should that not be the overriding issue for the meeting of the EU Heads of Government? If not, why not?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Thank you, Deputy.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Having travelled before the election to meet his political big sister, Frau Merkel, to establish what we thought was a best friendship forever on the basis that she would insist on supporting a reduction in interest rates and burning bondholders, what has happened? Has the Taoiseach abandoned completely the promises he made and his strong hint that his Government would demand the speculators take at least some of their losses? They should take them all.

I ask the Taoiseach to acknowledge that the crisis in Greece is not utterly different-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Sorry, Deputy Higgins is back into statements.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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-----that it is a crisis of the same diseased financial system in Europe and that the Greek working class are the victims of it, like Ireland, that they are on the verge of revolt and revolution and that we should support them.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It is different. The situation of international banks in Greece is different to Ireland. I have pointed out in my reply the main areas that will, more than likely, be discussed at the Heads of Government meeting. I intend to meet with Mr. Van Rompuy on Friday. Ireland's position is a priority for us. Let us be very clear that the Heads of Government agreed there should be or could be a reduction in interest rates applied to countries in the EFSF bailout. At that time, Ireland was not in that category. Neither was Greece, although it was being bailed out under a slightly different scheme. A reduction and an extension of the repayment period was applied in the case of Greece. When Ireland became involved in a bailout deal, the question of the interest rate reduction was part of that. Responsibility for that was given to the Minister for Finance because the banks' stress tests had not been concluded. That is one element of the conditions that apply here.

We met the conditions laid out by the troika but, because of a particular demand placed in Ireland that we go beyond the conditions for the bailout deal by increasing our corporation tax rate, I was not prepared to concede. Negotiations on that have been ongoing since and will continue. Hopefully we can reach a conclusion in due course.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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I do not believe the Irish people should change anything at the diktat of President Sarkozy or anybody else.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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That is not the point of Question Time. Does Deputy Higgins have a supplementary question?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It is the principle of unanimity.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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It is not a question of opinions, this is Question Time. We need to have supplementary questions.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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The Taoiseach raised this matter. Leaving aside the pressures of the European establishment, why is the Taoiseach prepared to die on the trenches to ensure big business does not pay a cent more but he has no compunction in hitting the working class and the disabled? When the Taoiseach meets President Van Rompuy, will he insist the issues of the bondholders and the interest rates to this State are key issues on the agenda of the EU Heads of Government? Otherwise, will the Taoiseach admit he has abandoned any intention of pursuing this, as the Minister for Justice and Equality seems to have told us?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The Minister for Finance is being represented in court in respect of the burning of subordinated bondholders. I explained to Deputy Boyd Barrett our position in respect of dealing with the ECB and its responsibility. The situation is being pursued by negotiation and we will continue along those lines. I hope the principle accepted by everyone unanimously can be adopted. The country has measured up in the first deep analysis by the troika - the outside partners - of the bailout deal. We have work to do in order to keep measuring up-----

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Thanks to the previous Government's efforts.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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-----and get to a point where we are again in charge of our own affairs. An element of that is an interest rate reduction, which is being pursued by the Minister for Finance. When I meet Mr. Van Rompuy on Friday I will speak to him about our priorities and I want to assure him that I intend to participate fully in the debates taking place at the leaders' meeting about issues concerning Europe in general, our own country and whatever appropriate issues arise. I will involve myself fully on behalf of the country and the people in those debates.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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I am seeking some guidance and advice from the Ceann Comhairle and the Taoiseach. Our attention was quite correctly drawn to Standing Order 42 and it was indicated that supplementary questions are allowed to elicit further information. As part of the Opposition my job is try to hold the Government to account and inform citizens about issues of the day. I put two clear short questions to the Taoiseach and did not make long statements but I have not received an answer. I also put forward a critical issue concerning emergency health services this morning and the difficulties we will see within a month but I did not get an answer to that question either. As a rookie I am seeking some guidance.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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As Standing Orders are at present, I do not have any control over what replies are given to parliamentary questions. All I can do is work within existing rules. If Deputies wish to change Standing Orders there is a place to do it.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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That is fair enough and I respect entirely your ruling. You are a very fair Ceann Comhairle. The Government has spoken about reform and how this place must be changed to benefit citizens. As somebody who has just been elected to this House I can see everything that is wrong with the system. It is very frustrating to ask simple and straightforward questions that do not get an answer. The Taoiseach answered a question I did not even put and spoke on a subject I did not raise.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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If the Deputy asks a supplementary question now based on his original question, I will ask the Taoiseach to answer. The question concerned whether the Taoiseach spoke to the Greek and Portuguese Governments for the purpose of examining the way the three states------

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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There is a very simple question. Has the Government decided, either through the good offices of the Taoiseach or the Tánaiste, to deal with these other governments? They may not have exactly the same difficulty as us but they are being asked to pay a significant burden of debt. Has the Taoiseach opened up any negotiations or discussions with them to the benefit of the people of this State?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The answer to the Deputy's question is clear. We can have all the discussions we like on the margins of Council meetings and there can be discussions between the leaders of any countries about issues that might affect them and relations between countries. These are European decisions which require unanimity from the Council. The Deputy is aware of the process of enhanced co-operation in some areas; for example, it occurs with regard to the common consolidated corporate tax base, which was raised here, and that is part of the Euro-Plus pact.

With regard to the problem facing Europe and the challenged countries, Europe decided to provide mechanisms for dealing with the issue. There is clearly a serious challenge ahead but the solution will not be decided in bilaterals between any two countries or a small group. There must be an EU decision. In that sense and with the point I make about the interest rate reduction in Ireland's case, most countries accept that we have measured up to very severe conditions and passed the first analysis of where we are headed. There is a demand, or a request, that there be an increase in Ireland's corporate tax rate. Tax is a national competence, and I feel very strongly about that issue, as does the Deputy.

I will meet the new Portuguese Prime Minister at the meeting and have discussions with him about the new position of his country. These are decisions taken by the 27 leaders and they are the only people in the room. From that perspective I intend to participate fully in the discussions affecting the Union and the countries therein, specifically those which are challenged.

The Deputy asked if I had spoken to the Greek and Portuguese Governments with the purpose of examining the way the three states affected by bailouts may be able to help each other. I have not. I spoke to the Greek Prime Minister before the last meeting, when he asked for support in respect of an interest rate reduction and an extension of the repayment period; I supported him on those issues. I spoke to the former Portuguese Prime Minister when his country was not in receipt of a bailout and he resigned afterwards while continuing in a caretaker capacity. Elections have taken place and I hope to meet the new prime minister at the Council meeting.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I find that answer incredible. The Taoiseach will meet Mr. Van Rompuy and I remember when he was appointed Belgian Prime Minister he did an immediate tour of capitals. He visited Dublin.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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He did.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Yes, and there was no crisis at the time.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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He has not been here.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Has the Taoiseach sought a substantive bilateral meeting with President Sarkozy?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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No.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Why not, given the enormity of the issue? The corporate tax matter is very important so what is wrong with organising such a meeting?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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This matter has been delegated to the Ministers responsible for finance. The Minister for Finance has had several meetings with the French Minister, Ms Christine Lagarde, about the matter. He has had extensive negotiations with other Ministers responsible for finance, and that is the duty and responsibility assigned to them. I expect and have every faith in the Minister being able to conclude that. If an opportunity arises, I will of course accept President Sarkozy's invitation to me that we should meet.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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May I ask a supplementary question?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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We are moving on. We have spent exactly 40 minutes on that question grouping.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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That is only four minutes per question.