Micheál Martin (Cork South Central, Fianna Fail)
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After he was elected, the Taoiseach said the Government would act decisively, forcefully and effectively with the banks and anybody else in the interests of those who held mortgages and were in difficulty in repaying them. Last week, for the second time in one month, AIB announced a major increase in its standard variable mortgage interest rate, to 4%, affecting 70,000 householders in the process. A mortgage expert has described this increase as absolutely obscene. This decision is further evidence that the banks and the Government have essentially abandoned mortgage holders, particularly those with mortgages at the standard variable rate. Deputy Michael McGrath, from my party, has estimated and illustrated that mortgage holders with a tracker mortgage of €200,000 will pay €224 less per month than those with a mortgage at the standard variable rate, a differential of €53,760 over a 20 year period. This will bleed ordinary householders across the country. As Constantin Gurdgiev and other economists have argued, it will also bleed the economy. It will rob it of disposable income and not facilitate the spending required. This is against the backdrop in July of a reduction by the ECB in its rate, but Ireland's pillar banks decided not to pass it on to customers. In fact, AIB increased its rate further by 0.5%. In essence, despite all the loud protestations and rhetoric, it is very clear that those with a mortgage at the standard variable rate are bearing a disproportionate burden and are being absolutely screwed.

The Taoiseach has remained silent on this issue. He indicated some time ago that tracker mortgages could be moved to the IBRC and that this would help the overall restructuring of the banking system, potentially allowing for some relief for customers a the variable rate, but no such action has taken place.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Will the Deputy ask a question, please?

Micheál Martin (Cork South Central, Fianna Fail)
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The Taoiseach committed to forcing the banks to forgo a 0.25 basis point rise through savings in administration costs. That was included in the programme for Government, but the Government has done absolutely nothing about this either.

Both the Labour Party and Fine Gael have been silent about it. What is the Taoiseach's strategy? Does he accept that the differential between tracker and standard variable rate mortgages is unacceptable and places a disproportionate burden on standard variable rate mortgage holders? What does he propose to do about it?

Enda Kenny (Mayo, Fine Gael)
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The first thing the Government had to do was to consider the number of banks and their dysfunctionality, and the situation with regard to lending policy and the distress people were experiencing with mortgages. The Government downsized the banks to two pillar banks, Bank of Ireland and Allied Irish Banks, both of which are deemed to be banks for the future. Clearly the Government is not in a position to direct that interest rates should not be passed on. We have made that point to the banks following reductions in interest rates by the European Central Bank on a number of occasions. This is a commercial decision by Allied Irish Banks. I acknowledge it is difficult and challenging for people who are on variable rate mortgages but it is necessary that the banks get back to profitability. If that is not to be the case, the State will have to continue to recapitalise them.

In so far as dealing with mortgage distress and difficulties is concerned, Deputy Martin is aware that the banks have attended a number of meetings of the Economic Management Council to discuss their forbearance strategies in respect of mortgages, negative equity and those who are in mortgage distress. The Government has pointed out the need to respect the code's provisions that people's houses should not be taken away from them and that a solution should be worked out in each individual case, requiring the banks, in some cases, to train personnel to deal with those whose mortgages are in arrears or distress. The Government has set out the position in the Personal Insolvency Bill 2012, which is proceeding through the House and will, we hope, be fully enacted by the end of this year with an effective date for implementation early in the new year. The director of the new agency takes up duties on 22 October.

The Government is acutely aware of these issues. We interact on a constant basis with people who have difficulties with mortgages and constantly remind banks of their requirements and responsibilities for dealing with mortgage holders in implementing a range of options. I intend to expand the remit of the Cabinet committee dealing with mortgages and arrears so that it can also deal with banking issues in general, because a number of major decisions will have to be faced in the coming period.

Micheál Martin (Cork South Central, Fianna Fail)
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I listened to the Taoiseach's language. He stated that the Government is actively aware of the issue, is interacting with various bodies and is reminding the banks of their duties, but the Government is doing nothing in any meaningful way to alleviate the disproportionate and unfair burden on standard variable rate mortgage holders. That is the bottom line, despite what the Taoiseach has said.

Last November, when the banks did not pass on the ECB interest rate reduction, he hauled them in with a great show of rapping their knuckles and demanding action. It was a "talk tough, do nothing" approach, but he is not even talking tough anymore. People are feeling alienated and let down because he made specific commitments to intervene effectively on behalf of mortgage holders. He has not intervened in any shape or form, however, and we are long beyond that point. I am not the only person who is saying this. The Central Bank and the IMF have been highly critical of the lack of progress and the slowness of banks and the Government to address the issue of mortgage arrears. Nearly 70,000 mortgages have been in arrears for longer than 180 days. Approximately 460,000 people are members of families experiencing the mortgage arrears crisis. The Personal Insolvency Bill will not be fully implemented until early 2013. It is dragging on. The Government is standing back from the problem and it is letting mortgage holders down. In the process, not only they but also the economy are being screwed.

Michael Healy-Rae (Kerry South, Independent)
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They are being bled dry.

Enda Kenny (Mayo, Fine Gael)
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For the information of Deputy Martin, “actively aware” means that people walk in to my office and those of every other Government Deputy and Minister to make us fully aware of the difficulties and challenges they face in respect of their mortgages. “Interacting with the banks” means that when we have occasion to engage with banks through the Economic Management Council, we speak about mortgage arrears, their forbearance strategies-----

Micheál Martin (Cork South Central, Fianna Fail)
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They increased the rate twice.

Enda Kenny (Mayo, Fine Gael)
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-----and their application to issues related to mortgages and mortgage distress. This was a commercial decision by a bank which the Government considers to be a pillar bank for the future, along with Bank of Ireland, and if it continues to charge an unsustainably low rate for variable-rate mortgages the impact will be that 2.1 million taxpayers are required to subsidise the bank even further in respect of the 70,000 mortgage holders who are experiencing difficulties.

The code on mortgage arrears means that banks and other lending institutions have the opportunity to sit down with each of the individuals and families involved to work out a solution. AIB's standard variable rate of 4% will remain the lowest in the market. These decisions are taken by the board of a bank-----

Micheál Martin (Cork South Central, Fianna Fail)
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The Taoiseach is endorsing them.

Barry Cowen (Laois-Offaly, Fianna Fail)
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Who sits on the board?

Enda Kenny (Mayo, Fine Gael)
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-----which the Government expects to return to profitability in due course so that it is a commercial bank which conducts its business in the manner one would expect with members of the public, mortgage holders and business people. The situation is not as the Deputy says. The Government is acutely aware of what is happening, but it is also important that the banks implement the series of options that have been set out.

Gerry Adams (Louth, Sinn Fein)
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I welcome today's announcement regarding jobs in the Kerry Group. Cuirim fáilte roimh an scéal maith sin. Ach thar an deireadh seachtaine cinntíodh go raibh eolas ag an Taoiseach féin, agus ag an Tánaiste, faoi na hionaid sláinte a roghnaigh an t-Aire Sláinte, an Teachta James Reilly. Sin scéal an-dona.

The Taoiseach promised transparency and openness, but for the last three weeks Deputy Ó Caoláin and I, along with others in Sinn Féin, have been trying to find out the criteria for the Government's decision to put two primary health care centres in the constituency of the Minister for Health. Why has the Government refused to publish the criteria? Do citizens and the Dáil not have a right to this information?

At the end of the summer the plan to cut personal assistant services for citizens with disabilities was thwarted by these brave people and their supporters, but today the Government is considering whether to end disability allowance payments to those younger than 18 years of age. It is also cutting home help services by €8 million. These are the political choices the Government is making. It is taking crucial resources from vulnerable sectors and punishing families on low and middle incomes by saddling them with debts they did not create, even while it is giving €64 billion to the banks without transparency. Will the Taoiseach publish the criteria for the primary health care centre locations, and will he state clearly that young people will not be penalised in December's budget?

Enda Kenny (Mayo, Fine Gael)
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Tá mé thar a bheith buíoch don Teachta gur fháiltigh sé roimh an ráiteas a cuireadh amach ar maidin i dtaobh na postanna nua atá le cur ar fáil ag an gcomhlucht Kerry Group, ceann des na comhluchtaí is fearr ar domhan atá ag déanamh infheistíochta de suas le €100 milliún anseo in Éireann. Beidh suas le 900 post nua le fáil agus beidh seans ag ógánaigh na hÉireann an chuid is mó des na postanna sin a ghlacadh.

Chomh maith le sin, cuirfear suas le 400 post ar fáil ag tógáil an ionaid nua seo.

Gerry Adams (Louth, Sinn Fein)
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Scéal maith é sin.

Enda Kenny (Mayo, Fine Gael)
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Tá mé buíoch don Aire as ucht fáilte a chur roimh an ráiteas a chuireadh amach ag an comhlacht féin agus an cinneadh eacnamaíochta atá déanta ag an comhlacht. Dúirt sé freisin go raibh eolas agam féin agus ag an Tánaiste faoi plean maidir leis na hionaid sláinte. Tá a fhios ag an Teachta, mar tá seo ráite agam go minic anseo, gur ghlac an Rialtas ar fad leis an plean infheistíochta - suas le €2.5 billiún - a fuair lán tacaíocht ón Rialtas agus a fógraíodh ag an Aire Caiteachais Phoiblí agus Athchóirithe cúpla mí ó shin.

Tá na freagraí sin tugtha ag an Aire Sláinte anseo go minic. Séard a bhí i gceist leis na coinníollacha breise ná go mbeadh comórtas ann i dtreo agus go gcuirfear na hionaid sláinte ar fáil agus go mbeadh cabhair le fáil ó na dochtúirí, mar le blianta anuas, nuair a cuireadh ionaid mar seo ar fáil, níor ghlac le cuid de na dochtúirí dul isteach iontu. Ní cóir go mbeadh caiteachas airgid poiblí i leith na hionaid seo gan aontas ó dochtúirí dul isteach iontu. Is cóir freisin go mbeadh iniúchadh déanta faoi líon na ndochtúir i leith líon na ndaoine sa cheantar, ar chomh tábhachtach a mbeadh sé do na dochtúirí ag dul isteach iontu agus cé chomh éifeachtúil ó thaobh costais de a mbeadh sé dóibh.

Leagadh coinníollacha eile amach ag an Aire Sláinte ar nós: céard iad na hionaid leighis atá ar fáil faoi láthair in aon áit; céard iad na brúnna atá ar na seirbhísí atá le fáil, go mór mór iad siúd atá ar fáil sna hospidéil sa cheantar: an mbeadh sé níos fearr airgead a thabhairt go díreach ón Roinn Airgeadais d'ionad sláinte ar bith nó an mbeadh sé níos fearr dul isteach sa chóras PPP mar a cuireadh amach; agus céard iad na coinníollacha cóir a mbeadh i gceist maidir le córas PPP a chur ar fáil ar dtús do na hionaid sláinte seo.

Labhair an Teachta faoi na liúntais do dhaoine atá deacracht acu. Is rud don buiséad é sin agus ní dhearnadh cinneadh ar bith faoi sin. Léigh mé ar an bpáipéar inniu faoi tuarascáil eile nár cuireadh ar fáil go fóill. Níl sé críochnaithe go fóill ná feicthe ag an Aire ná ag an Rialtas fós. Séard atá i gceist mar sin ná ráflaí faoi chinneadh nach bhfuil déanta ar chor ar bith ag an Rialtas. Tá sé mar a gcéanna maidir le ráflaí faoi laghdú don cabhair atá ar fáil do dhaoine ina dtithe féin. Duine ar bith atá seirbhís ag teastáil uaithi ná uaidh, beidh sé ar fáil.

Gerry Adams (Louth, Sinn Fein)
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Sin freagra an-fhada, ach níl eolas ar bith ann. Chuir mé dhá cheist ar an Taoiseach, ach níor thug sé eolas ar bith dom. Nuair a bhí an Aire Sláinte anseo ag glacadh le ceisteanna, níor chuir sé eolas ar bith roimh an Dáil. Maidir leis na daoine óga, dúirt an Taoiseach nach bhfuil an buiséad réidh fós, ach d'fhéadfadh sé a rá go han-soiléir nach mbeidh sé ag glacadh airgid ó na daoine seo.

Maidir leis an méid adúirt an Taoiseach i dtaobh é féin agus an Tánaiste, bhí a fhios acu faoi na roghanna a ghlac an Aire Sláinte. What happened to the democratic revolution and transparency? These issues are bigger than the Minister, which is why the Taoiseach will not sack him. This goes to the heart of the Government. The Taoiseach stands over his decisions because he and the Tánaiste and the rest of the Government were part of them - different folks, same strokes.

Cuirfidh mé an cheist arís, ach cuirfidh mé í i mBéarla. I urge the Taoiseach to publish the criteria relating to primary care centres and make it clear that he will not penalise young people with disabilities in the coming budget.

Enda Kenny (Mayo, Fine Gael)
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Ní cheist í sin ar chor ar bith, ach ráiteas. Thosaigh an Teachta as Gaeilge agus mar sin tabharfaidh mé an céad freagra arís dó as Gaeilge. Tá na coinníollacha léirithe ag an Aire Sláinte anseo agus é ag déileáil le Ceisteanna agus i ráitis atá curtha amach aige. Tá na coinníollacha breise a thug an Aire isteach leagtha amach agam anois maidir le leathnú an méid ionad sláinte a bheidh á chur ar fáil.

The Deputy mentioned young people being penalised in the budget. As I said as Gaeilge, I noted the comments today on under-18 disability payments. Let us be clear: this is media speculation about a report that has yet not even been finished, that has not even been presented to the Minister for Social Protection or that has not been considered by the Government.

Gerry Adams (Louth, Sinn Fein)
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Squash it.

Mattie McGrath (Tipperary South, Independent)
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Have a mini-Cabinet meeting on it.

Enda Kenny (Mayo, Fine Gael)
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This is a matter, no more than any other, that will be properly considered by the Government collectively as part of its responsibility to bring forward a budget for 2013, which budget will be challenging in all respects. The matter of disability payments to under 18 year olds is the subject of a report that has not been concluded, that has not been presented to the Minister, that has not been seen by any Minister and, therefore, has not been considered by the Government. Obviously, it will be considered as part of the overall responsibility of the Government to present its budget early in December.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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I call Deputy Shane Ross.

Gerry Adams (Louth, Sinn Fein)
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What about the criteria applied?

Enda Kenny (Mayo, Fine Gael)
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Thug mé freagra ar sin as Gaeilge. Níl mé chun athrá a dhéanamh air.

Gerry Adams (Louth, Sinn Fein)
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Níor thug tú.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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I have called Deputy Shane Ross. As far as I am aware, there is only one Deputy Ross in the House.

Shane Ross (Dublin South, Independent)
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When I grow a beard, the Ceann Comhairle will be entitled to mistake me for Deputy Gerry Adams, otherwise there is not much of a similarity.

Despite the IMF's reservations, the austerity economic policies continue throughout Europe. Nowhere was this more apparent than in Luxembourg yesterday when the ECOFIN Ministers met. What happened was something of a triumph for Europe, in that the ESM was launched. However, I suggest what happened was a source of humiliation for Ireland because the bank debt issue did not even make it onto the agenda. In view of what has been said about this issue recently, will the Taoiseach enlighten the House on whether it is a phantom bank deal we are encountering? Is it melting as the days go by? I do not know if the Taoiseach is aware of what Klaus Regling said yesterday when asked about the legacy debt, the issue in question. He was dismissive. He said: "This point has not even been discussed in any European body so far." Has the deal gone down the tubes? I know the Taoiseach will say the breaking of a link between sovereign and bank debt has been established, but where is the Irish deal which mainland Europe seems to be so keen on dismissing as not being on the agenda anymore? The breakthrough in June is now a non-event in October.

Will the Taoiseach address, in particular, what is happening with the two strands which appear to be hitting the buffers? One is the Anglo-Irish promissory note, on which the Minister for Finance, Deputy Michael Noonan, appears to have extended the deadline from October to March. The second, the recapitalisation of Bank of Ireland and AIB - sometimes known as the legacy issues - which we were promised after June has been postponed at least until a supervisory authority has been set up. That will not happen until next year. Therefore, is the deal disappearing? Is it a mirage? Is it vanishing before our eyes and something the Taoiseach has oversold but which mainland Europe is now disowning?

Enda Kenny (Mayo, Fine Gael)
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The answer to the Deputy's question is "No". It is not disappearing.

Mattie McGrath (Tipperary South, Independent)
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It has disappeared.

Enda Kenny (Mayo, Fine Gael)
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Neither of the two issues that are at stake here are disappearing.

Mattie McGrath (Tipperary South, Independent)
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It is gone.

Enda Kenny (Mayo, Fine Gael)
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Obviously, the discussions that take place prior to European Council meetings, and consequent to them, can be complex and quite varied. Deputy Ross will recall that there was a view that there would not be an interest rate reduction from a European perspective, that there would not be a temporary bailout system, that there would not be a permanent bailout mechanism, that there would not be an ESM, that there would not be a second bailout for Greece and that there would not be a break between sovereign and bank debt. All of these issues have happened and have been implemented, or decisions have been taken in respect of them but have not been implemented yet.

Mattie McGrath (Tipperary South, Independent)
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Live horse and eat grass.

Enda Kenny (Mayo, Fine Gael)
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Neither of the two issues mentioned in Deputy Ross's question are disappearing from the radar. On the question of legacy issues, I made it perfectly clear to President Van Rompuy when I met him last week that the decision to break the link between sovereign and bank debt in this country's case is not about some problem that will arise for Ireland in the future. I said the problem is here now, having been caused by issues of the past. The same thing applies to a number of other countries. It is clear the facility to recapitalise banks directly is intrinsically tied up with the decision to have a banking union capacity brought forward. The Commission has put that on the table and it is now the subject of intense and ongoing discussions and negotiations. As Deputy Ross is aware, it has direct implications in the case of Spain and a number of other countries. Work is proceeding on that.

In the case of the Anglo Irish Bank promissory note, we are trying to unravel a very difficult situation for this country and, as a consequence, for the people of this country. It is not as easy as it might sound or seem. Some progress has been made in regard to the payment that was due in March of this year. As the Minister, Deputy Noonan, said at the meeting in Luxembourg yesterday, the situation is that the next payment date is March 2013 but our clear objective and wish is that this might be concluded before the end of the year. I have answered questions from other Deputies about this. I cannot put an exact timeline on it.

Mattie McGrath (Tipperary South, Independent)
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Could the Taoiseach put a decade on it?

Enda Kenny (Mayo, Fine Gael)
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The important thing is to get the best deal for the taxpayer and the people.

Barry Cowen (Laois-Offaly, Fianna Fail)
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It needs to be done more quickly.

Enda Kenny (Mayo, Fine Gael)
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I recall the statement that was made in this House last week by the President of the European Parliament, Mr. Schulz. I note the comments of Mr. Draghi, Commissioner Rehn, the IMF, the European Commission, the President of the Council last week and the President of the Commission.

Timmy Dooley (Clare, Fianna Fail)
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What about the comments of Deputy Mathews?

Enda Kenny (Mayo, Fine Gael)
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All of them are strongly in favour of a political decision being made with regard to this country easing its way out of the bailout programme and reducing the level of pressure on our people. I would like to reassure Deputy Ross with regard to both of these issues. The issue of the Anglo Irish Bank promissory note, which we are trying to unravel here, is being discussed directly by the Minister for Finance, his counterparts and the European Central Bank. The issue of the decision on sovereign and bank debt, which is also being discussed directly, is the responsibility of the Council and the heads of government. We are absolutely clear, as other countries are, on what the 29 June decision actually means. It is not about some problem that might arise in the future. It is about a problem that exists now, having developed in the past. The implications of that problem are very exacting for many people in this country.

Shane Ross (Dublin South, Independent)
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I am glad the Taoiseach mentioned the heads of government. Obviously, Angela Merkel is the most powerful person in Europe. I presume that if the Taoiseach were persuasive with her, she could give us a deal on legacy issues at the drop of a hat. Can the Taoiseach tell the House how often he is in touch with the German Chancellor?

Barry Cowen (Laois-Offaly, Fianna Fail)
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Before every election.

Shane Ross (Dublin South, Independent)
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Has he asked Angela Merkel for her assistance on this matter? We had the President of the European Parliament here for a piece of theatre last week, but would the Taoiseach consider asking Angela Merkel to join him as his guest at the football match on Friday?

Ray Butler (Meath West, Fine Gael)
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We could ask Seánie Fitzpatrick if he was not in court.

Enda Kenny (Mayo, Fine Gael)
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I have made this country's position perfectly clear to other leaders.

Ray Butler (Meath West, Fine Gael)
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He is the Deputy's friend.

Mattie McGrath (Tipperary South, Independent)
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Forever friends.

Enda Kenny (Mayo, Fine Gael)
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When one studies the-----

Ray Butler (Meath West, Fine Gael)
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The Deputy is like Bilbo Baggins over there.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Sorry, we cannot hear the Taoiseach.

Enda Kenny (Mayo, Fine Gael)
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I remind Deputy Ross that we are following through on the decision of the people to endorse the Lisbon treaty. He will appreciate that the comments made here by President Schulz last week were not a piece of theatre, but the actual facts. The budget for the European Union requires the support and approval of the European Parliament. The Deputy will recall that President Schulz said last week that we need to return to the community method. We had already made that perfectly clear to other leaders. In its own way, it was a contributory factor to the decision that was made on 29 June to break the link between sovereign and bank debt. In our case, it clearly signifies our understanding of this as a legacy debt with implications for other countries. The banking union programme that has been prepared by the Commission is on the table and is being discussed. The target date for that being implemented, or being in situ, is 1 January next. That is a tight timeline. I hope it can happen.