Dáil debates

Tuesday, 19 July 2011

2:30 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 1: To ask the Taoiseach if he will outline his approach to the need for an emergency summit of the European Council. [21084/11]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 2: To ask the Taoiseach if he has contacted other heads of State or Government concerning further emergency economic matters which may require to be discussed by the European Council. [21085/11]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Question 3: To ask the Taoiseach if he had discussions with Euro Parliament President Buzek on his visit to Ireland. [21141/11]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 1 to 3 together.

I was happy to welcome President Buzek to Government Buildings for a breakfast meeting last Tuesday, 12 July. Ireland is a strong supporter of the European Parliament and has many friends there. Our people have served in the parliament at its highest levels and our MEPs make an important contribution to its work.

We had a good discussion of some of the most important issues facing the Union, including the economic situation and the future of the Union's budget. I told President Buzek that Ireland is greatly looking forward to its seventh EU Presidency in the first half of 2013. Preparations are now well under way. We had a very good discussion on how the rotating presidency is working since the coming into force of the Treaty of Lisbon, and the extension in the number of areas to which co-decision applies.

I made it clear to the president that I will be stressing to all my Cabinet colleagues the importance of building good relations with the European Parliament, especially in the committees, in the period ahead. We want to do a good job for Ireland and for Europe.

We also touched on the technical process needed to give effect to the "Irish Protocol" secured ahead of the second referendum on Lisbon and I asked for the president's assistance in making this as speedy and straightforward a process as possible.

I advised the House last week of the outcome of the meeting of Eurogroup Finance Ministers that took place on Monday, 11 July. Ministers reaffirmed their absolute commitment to safeguard financial stability in the euro area. This includes standing ready to adopt further measures that will improve the euro area's systemic capacity to resist contagion risk.

Ministers also tasked the Eurogroup working group with proposing measures to reinforce the current policy response to the crisis in Greece. This reinforced strategy is intended to provide the basis for an agreement in the Eurogroup on the main elements and financing of a second adjustment programme for Greece.

The Council of Finance Ministers also reviewed on Tuesday, 12 July, the availability and soundness of the backstop measures in place to address decisively any remaining pockets of vulnerability in the EU banking sector. This was ahead of publication on Friday last, 15 July, of this year's bank stress test results overseen by the European Banking Authority. President Van Rompuy has, in light of these developments, convened a meeting of the eurozone Heads of State or Government in Brussels this Thursday, 21 July. The agenda will be the financial stability of the euro area as a whole and the future financing of the Greek programme. Officials are currently working on the proposals that will be tabled at the meeting. My priority will be to ensure an outcome with positive implications for Ireland.

It will also be important for leaders to deliver a credible, workable and durable solution. In this regard, I would like to see the outcome providing us with the maximum range of options and flexibility to be deployed as future events unfold.

It is now very clear that what has been perceived by some as a set of problems affecting just a few peripheral countries is, in fact, systemic, affecting the euro area as a whole. We need an outcome that offers certainty and security for the future.

We have maintained close contact with our European partners, in both capitals and institutions, during the period since the June European Council. I look forward to meeting again with colleagues this Thursday.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I tabled two of the three questions in this group. This is an extremely grave moment for Europe and the reason there is a need for such a summit is that in the last four months European leaders have failed to take comprehensive action as agreed to in principle in February and formally adopted at the March Eurogroup meeting. The need for changes to debt repayment terms was agreed to, but the decision on 11 March not to finalise the terms was a major error. Finance Ministers failed in their job and the leaders carried on regardless. If the situation cannot be rescued, history may view the last two European summits as a major collective failure on the part of the leaders of Europe.

Given that the ratings agencies and bond markets are now assuming there will be debt restructuring for Greece, will the Taoiseach support such a move on Thursday? On Ireland's position, there is no question that the interest rate charged on our funding will be reduced, as agreed to in principle more than four months ago. The remaining issue concerns bank bondholders. As the Taoiseach knows but may not often acknowledge, since last year it has been the Government's position to seek to restructure substantial portions of our bank debt. However, by way of its veto, the ECB has prevented this from happening. If there is movement on the Greek debt, the principle of restructuring will have been breached. Does the Taoiseach agree that our position should be that no final agreement is possible without allowing a more significant burning of other bondholders also?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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There is no doubt that this is a crucial time for Europe. That is why President Van Rompuy has called together the eurozone Heads of Government for a meeting on Thursday. The Deputy reflected on what happened at the last two summits. It may be possible, in the event that agreement is reached on a comprehensive solution here, that Thursday's meeting could also be regarded as quite historic in the interests of dealing with Europe's fundamental problem here.

It should be acknowledged that the agenda being discussed at recent meetings, particularly by the ECOFIN Ministers, has been the agenda put forward by the Irish Government. It relates to the pricing of funding from the EFSF, the flexibility therein and the question of maturity dates. All these issues were initially tabled by Ireland and are being discussed centrally by Europe in respect of the problem affecting the eurozone.

I will not comment on what will happen in respect of the outcome of the meeting on Thursday except to say there are numerous meetings taking place today and tomorrow. Discussions are being held in different countries, institutions and parliaments about what may happen here. I wish to see a conclusion to the question of anxiety over the future of the eurozone and deal decisively with the issue of contagion spreading, essentially arising from the Greek problem but with implications for other peripheral countries.

If the Deputy has any observations or solutions, they would be welcome. This affects not just Ireland but the entire eurozone. For our part we are now working with officials and our counterparts in Europe as we approach Thursday's meeting. It is my hope - although I cannot forecast the conclusion of the meeting - that it will result in decisiveness in respect of the eurozone and the protection of the euro. I also hope it will deal with the question of anxiety and concerns over the contagion risks spreading to other areas. What has been reported and commented upon publicly would be of benefit to the country but I cannot predict the final outcome of Thursday's meeting.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I have put forward some issues with the questions I asked, particularly when I asked if the Taoiseach agrees that our position should be that no final agreement is possible without also allowing for significant burning of certain bank bondholders if there is movement on the Greek position and Greek debt. Given the comments of the Tánaiste on Sunday and the Taoiseach today, we should get something straight. There has been no diplomatic initiative from the Government side. Over four months the Taoiseach has not held a single bilateral meeting with a eurozone leader.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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There should be a question for the Taoiseach.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Tánaiste and Minister for Finance have not increased the number of meetings with eurozone counterparts.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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What was the Deputy doing for the past five years?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The second question asked if the Taoiseach had contacted any other Heads of State or government with regard to further economic matters which may need to be discussed by the European Council. The Taoiseach did not answer the question in his first reply and I take it the answer is "No." The Taoiseach indicated that he looked forward to meeting such people next Thursday and there was contact between officials but the Taoiseach has clearly not picked up the phone and spoken to any eurozone leaders on this pressing issue.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Who did the Deputy speak to for the past ten years?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Does the Deputy have a question?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I am asking if the Taoiseach contacted anybody, including Heads of State, in the past week with regard to next Thursday's meeting. I know people in the press office will argue that the campaign has been successful. Basically, the Irish Government has been a bystander.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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The Deputy wishes that were so.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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This has evolved over the past two or three months. Listening to the Taoiseach's comments, it is like a footballer claiming credit for scoring a goal from the sidelines.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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This is Question Time.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Perhaps it is more like a pedestrian, such as the Deputy.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Is he talking about the Roscommon match?

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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It is better than kicking a ball wide.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Will the Taoiseach explain what will be discussed relating to Ireland at the summit? How much of an interest rate reduction is being sought? Are we formally tabling the restructuring of bank debt?

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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The Deputy could put on the green jersey.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Could we get more specifics on our approach to the meeting, which I asked about in an earlier question but to which I did not get a specific response?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I am not surprised at the Deputy's comments. He seems to have the bug he picked up in the Department of Foreign Affairs, when he travelled around the world. He seems to believe my job is to be on the telephone all day to other leaders around the world and to travel between European cities.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I did not say the Taoiseach should be on the telephone all day every day. He is never on it.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I remind the Deputy of what he did in lumping bank debt onto sovereign debt-----

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Hear, hear.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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-----and putting it on the backs of the citizens of this country.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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You voted for that.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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In my view, it was a gross act of political failure.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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You supported it.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I have to deal with that at home and in Europe.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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You voted for that and supported it as Opposition leader.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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When the Deputy asks a question, he should wait for an answer.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I remind the Deputy that since the Government started to pursue the issue, there has been extensive sharing of responsibility by subordinated bondholders and there is more to come. The Minister for Finance has made it perfectly clear that in respect of senior bondholders, we regard Anglo Irish Bank as being a dead bank. It is in a different position and different circumstances from any other bank.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Hear, hear.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The discussions about that will start in the autumn.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Get on with it.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It is not like a football player scoring a goal or a point from the sideline. Maurice Fitzgerald was able to do that against my county in an all-Ireland final a number of years ago.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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The Taoiseach missed a good game last Sunday.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The discussions and negotiations we are involved in are aimed at finding a European solution to a European problem. That is what the Government has been pointing out for the last four or five months.

Deputies:

Hear, hear.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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We pointed it out for about three years, but the Deputies opposite did not acknowledge it.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The Tánaiste has pointed it out during meetings with foreign affairs ministers and diplomats. I have pointed it out when I have attended Council meetings. I have not been travelling around Europe. I have been going around this country telling people that we will not sink under the weight of this economic challenge. We have not been hit by an earthquake or a tsunami. We have been left with a legacy that no previous Government, or previous incumbent as Head of Government, has had to face in the history of this State. I have to face such a legacy now.

Deputies:

Hear, hear.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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We are going to deal with this challenge.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Has the Taoiseach said that to the people of Roscommon?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Part of that process involves getting the eurozone leaders to deal with Europe's problem, which has clear implications for Ireland, this Thursday. I do not want to go into the details of the matters that are being commented on publicly. I refer to the question of what might be decided during Thursday's meeting. As Deputy Martin is aware, questions of flexibility, pricing and maturity dates are relevant and important. Far be it from me to pronounce, on behalf of one of the eurozone countries, what the outcome of the decision-making process might be. I assure the House that we are very interested - more than interested - in ensuring that the decision which was originally made is adhered to. If a more comprehensive solution is put on the table, we will discuss that comprehensively and support it in the interests of our people who were deprived of their economic sovereignty for the first time in 90 years by the previous Government.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Hear, hear.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Can I ask a supplementary question relating to Question No. 2?

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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The Deputy should apologise for his inaction in government.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Has the Taoiseach contacted any European head or leader in the last ten days to discuss the summit?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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As I said in my initial response, I spoke to the President of the European Parliament when he was here.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I am not asking about the European Parliament. Did the Taoiseach speak to any European leader?

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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I thank the Taoiseach.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Sinn Féin agrees with the Taoiseach that the Government inherited a mess from our friends on these benches. That is clear. I do not understand why the Government is doing exactly the same thing they did when they were in office.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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No.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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In March of this year, there was an acceptance that the debt was unsustainable. We are now in the middle of July, and it is exactly the same as it was. Our European partners are making a profit of €10 billion. We will give millions or perhaps billions to the toxic banks. We are taking money out of our school and hospital systems, our public services and our welfare burden. The Taoiseach said he would not comment on what might happen on Thursday. I ask him to make it clear that the Government's position is there will be burden-sharing, this debt is not sustainable and the interest rate on which the Taoiseach has been majoring will be resolved. Mar a dúirt mé leis an Taoiseach cúpla uair cheana, that should be the Government's position. Tá mé an-sásta é a fheiceáil anseo inniu. Ní raibh sé anseo an uair deireanach a chuireamar ceisteanna ar an Taoiseach. Caithfidh mé a rá go bhfuil mé sásta go bhfuil sé anseo anois. Caithfidh an Taoiseach a bheith soiléir nach bhfuil seo in-buanaithe. Caithfidh sé a beith á rá sin go han-soiléir fosta.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Tá a fhios ag an Teachta Adams go maith céard atá mé á rá anseo le cúpla mí anuas faoin deacracht atá ag Éirinn. Tá a fhios aige go maith freisin gur ndearna cinne ag an chruinniú ar 11 Márta gur chóir go mbeadh laghdú ráta úis do na tíre atá sáite isteach sa chomhlacht ESFS.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Ach cad a tharla anseo?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Ba chóir go mbeadh laghdú ar an ráta úis ansin ach níor tharla an laghdú sin. Is é an t-aon tír nach raibh sásta é sin a dhéanamh ná an Fhrainc. It is not true to say, as the Deputy seems to believe, that we can act unilaterally, walk away and make decisions on our own. We are not in this alone.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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That is not what the Taoiseach stated a few months ago.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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We had no wish to be involved in this loan repayment scheme. We were led into it, despite the denials of the previous Government. I remind Deputies that the Tánaiste and Minister for Foreign Affairs and Trade, Deputy Gilmore, has met his counterparts in Germany, France, the United Kingdom and Spain the past two weeks, as part of the diplomatic connection that happens on a regular basis-----

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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It is ongoing.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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-----despite the fact that Deputy Martin thinks we should ring people every second minute-----

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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No, just once. Even that would be a major breakthrough for the Taoiseach.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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-----stating, "How are you over there?" The point is, in answer to Deputy Adams, that there has been serious responsibility sharing with subordinated bondholders. The Government has made it clear that we are not happy with the position on Anglo Irish Bank which is an entirely different category and facing a different set of circumstances than Bank of Ireland or AIB, on which we will commence discussions early in the autumn.

The meeting is taking place on Thursday. Officials in the Department of the Taoiseach and the Department of Finance are in contact and dealing with their counterparts in a number of places across Europe on what is happening about the preparations being made for the meeting of the Heads of Government of the eurozone countries on Thursday and it is my hope agreement can be reached to bring certainty to end the problem of anxiety in respect of a second Greek bailout deal whereby a range of options will be considered, and also that the contagion consequent on what has been happening in Greece will be prevented from filtering into other countries carrying with it implications for Ireland. One should remember that the European Commission, the European Parliament, the IMF, Commissioners, many Parliaments and the troika have stated this country is meeting requirements as part of a difficult and challenging loan fund repayment scheme. I would like to think a comprehensive deal can be reached on Thursday. However, I cannot predict with certainty that such will happen because one never knows, but I would like to think it will happen and that it will benefit not only Ireland but Europe also, with obvious clear implications for the country.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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We now proceed to question No. 4 in the name of Deputy Martin.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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May I ask one final question?

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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A Cheann Comhairle-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Deputy Martin has had a good run. He raised a number of questions during a period of 25 minutes.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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This is probably the greatest issue to face Europe and the country in the past few years.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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We are very strict at Question Time.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I just want to ask-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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No, I am moving on.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Ten years ago it was the greatest issue.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I am not spending all day on these questions.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Taoiseach mentioned that he was leaving the Anglo Irish Bank debt issue until the autumn and stated in reply to Deputy Adams that this was not a unilateral decision that could be taken by the country. That was explained to many people six months and three months ago. We have moved from a position where it is no longer "Labour's way or Frankfurt's way"-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Questions, please.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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-----or where there will be unilateral bondholder burning that the Taoiseach advocated to one where we are not being told in the House.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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May we have questions, please? This is Question Time.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I asked a question to which I did not receive an answer. Are we, as a country, formally tabling a proposal on the restructuring of bank debt? Are we putting it formally on the table for Thursday's meeting? The Dáil deserves to receive an answer in that regard.

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

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I call the Taoiseach.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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It is important that we receive an answer because the Taoiseach has stated the Anglo Irish Bank bondholder issue is being put back until the autumn, even though we were told it would be dealt with in the first 100 days. The legislation is in place to deal with junior bondholders. It was in place a couple of months ago. What is Ireland tabling for the meeting on Thursday in terms of the restructuring of bank debt?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It seems the Deputy does not want to recognise reality. It has been some time since the Minister for Finance put it on the table that the pricing of the fund was too high in general-----

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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That was agreed in March.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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-----and that there needed to be a lowering of prices across the board and far greater flexibility and decisiveness on related elements. The question of Anglo Irish Bank has been signalled for quite some time by the Government as being the focus of discussions that will take place in the autumn.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Why not now?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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We cannot and we have no intention of doing the entire programme for Government, from which the Deputy seems to pick bits, in the first 100 days.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The debt restructuring is on this week.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The question of particular issues that surround this fund and the implications for Ireland and other countries is not for this Government to decide on its own. As I speak, officials from the Departments of the Taoiseach, Finance and Foreign Affairs and Trade are in contact with their counterparts throughout Europe. The Deputy is aware of the way these things are structured and the way the preparations go for meetings of Heads of Government and for EU Council meetings in general. This work is going on now.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Taoiseach talks to the leaders.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I am quite sure that as we stand here at 2.55 p.m. the agenda is not finalised for the meeting on Thursday. As the Deputy is aware, this evening, tomorrow and up until the time of the meeting there will be discussions and deliberations about this. As I stated here last week I hope there will be decisiveness, clarity and a comprehensive solution on this occasion. I note that Chancellor Merkel stated in the beginning that she would be reluctant to travel to a meeting if there were to be no decision. I share this view. I am pleased that the focus now is to bring about a position where there will be decisiveness and action about something that is clearly of importance to every European citizen.