Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance if a common position has yet been agreed with the Troika on the restructuring or refinancing of the Anglo Irish Bank promissory note; if in addition to the discussions of lower interest rates and longer maturities he is seeking an earlier wind down of IBRC than currently planned; if he will provide an update on the negotiations and a timescale for when the negotiations will be concluded; and if he will make a statement on the matter. [50716/12]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the Government has been working very hard to secure a deal on the Irish bank debt and detailed work will continue to ensure that the positive moves in Europe are harnessed to maximise the benefit to the Irish taxpayer. These discussions have intensified on the back of the euro area summit statement of 29 June of this year, and the ongoing work is one of the Government’s key priorities.

A significant item on the agenda in all current discussions is the issue of the promissory note. I am glad to say that we are meeting strong appreciation of our situation and are able to have very constructive dialogue on our approach to this question. These discussions are considering all options for the restructuring of the promissory notes and related considerations in terms of the source of funding, the duration of the notes, the interest rate applicable and so forth, as well as potential avenues for the wider bank debt deal and the impact of any agreed deal for the IBRC.

There are clear benefits at stake for the State in these discussions. A reduction in the interest rate associated with the promissory note, the maturity profile of the notes and the availability of long-term financing for the IBRC would have a direct impact in reducing the amount the State must borrow, either directly or indirectly, to meet future promissory note repayments and could result in considerable benefits to the State.

It would be inappropriate for me to provide a more specific update as I am in continuing dialogue with our partners on the issue and all matters remain under consideration at this time. I can assure the Deputy that the terms being sought by the Government are those which are most likely to achieve the best possible outcome on behalf of the Irish taxpayer.

On the question of timing, I have indicated that we have a strong desire to achieve a deal in advance of the next promissory note instalment due in March next year. However, it is not possible to give more specific guidance because to do so could impede our ability to achieve the best possible results for the Irish taxpayer. None the less, every effort is being made to expedite the ongoing process.

Pearse Doherty (Donegal South West, Sinn Fein)
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Go raibh maith agat. I thank the Leas-Cheann Comhairle for his indulgence and apologise for being late.

At the beginning of our discussions on the promissory note I want to make it clear, as I have done consistently, that Sinn Féin wishes the Minister and the Government well in their endeavours with the troika to negotiate a deal on the promissory note. Having said that, however, everything I have heard from the Minister to date and, indeed, what he has reiterated today leads me to believe that he is selling the country short. He is focusing on extending maturity, the interest and the source of the funding, which basically means that the taxpayer will continue to pay the full capital of this bad, toxic Anglo debt. Of course, what he has outlined may have benefits in the short to medium term to our current budgetary position and to the taxpayer, which would be welcome. We will judge that when we see the detail, but on the basis of what the Minister has said, even in the best case scenario the taxpayer will remain liable for every single last red cent of the capital of the Anglo Irish Bank promissory note. That deal was not created by the taxpayer, and in the view of Sinn Féin, it should not be paid by the taxpayer.

Sinn Féin has been saying this for a very long time and the Minister and his Government has ridiculed us for doing so. I draw the Minister's attention to an article, published in The Irish Times yesterday, by a former deputy director in the IMF's research department, Ashoka Mody. In it, he describes the Government's determination to make the taxpayer pay the debts of the banks as acquiescing to the "prevailing dogma", a dogma that he argues needs to be revisited. He argues that the default option on debts such as Anglo's could be economically efficient, fair and politically sensible. That is the view of Sinn Féin and is also the view of the deputy director in the IMF's research department. The consensus is changing so why does the Minister stubbornly adhere to the Government position that the taxpayer will have to pay every single last red cent of the capital of the Anglo Irish Bank promissory note?

Michael Noonan (Limerick City, Fine Gael)
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Academics and retired luminaries from illustrious organisations such as the IMF have far more scope to get involved in speculation than a Minister of a Government who has to take the hard decisions. I draw Deputy Doherty's attention to the commitment made by the Government, along with all 27 member states at the European summit in October last:

As far as our general approach to private sector involvement in the euro area is concerned, we reiterate our decision taken on 21 July 2011 that Greece requires an exceptional and unique solution.

All other euro area Member States solemnly reaffirm their inflexible determination to honour fully their own individual sovereign signature and all their commitments to sustainable fiscal conditions and structural reforms. The euro area Heads of State or Government fully support this determination as the credibility of all their sovereign signatures is a decisive element for ensuring financial stability in the euro area as a whole.

Pearse Doherty (Donegal South West, Sinn Fein)
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The Minister threw in the towel a long time ago and that towel is smothering ordinary people across this State with the Government's policy of austerity. Last night was the opening night of "Anglo The Musical" and I am told there was a very funny scene at the end which struck a chord with the audience. Angela Merkel walked out and stood on stage to tell the Irish people that they must honour all of their debts. Beside her was Enda Kenny, on all fours, in leash and collar and he chirped up to say that while the Irish people did not cause the problem they will pay every last cent of the Anglo Irish Bank debt.

Michael Kitt (Galway East, Fianna Fail)
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Can we have a question from the Deputy, please?

Pearse Doherty (Donegal South West, Sinn Fein)
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The Minister said earlier that it is his desire that a deal will be concluded by 31 March. The deal may not be concluded by then. None of us has a crystal ball and we do not know what that deal will look like. Is the Minister standing willing, ready and able, as Minister for Finance, on 31 March, in the absence of a deal, to put €3.1 billion of taxpayer's money into the IBRC, formerly known as Anglo Irish Bank?

Michael Noonan (Limerick City, Fine Gael)
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I have not seen "Anglo The Musical" but I always think that satire, unless handled lightly, is just above pie throwing as theatrical entertainment. I do not think the Deputy should bring it forward as his principal witness in requesting the Government to default. On the other hand, I have made my position clear about the imminence, in March, of a repayment. I did not pay it last year and I have signalled to the Europeans and nationally that I am not disposed to pay it this year. I would like an agreement with the European authorities which allows for a different way of dealing with the promissory note as we go forward.