Pearse Doherty (Donegal South West, Sinn Fein)
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2. To ask the Minister for Finance his views on the need for a European Debt Conference to discuss and take action to reduce the high levels of debt of some EU countries including here. [4821/15]

Pearse Doherty (Donegal South West, Sinn Fein)
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What is the State's position on having a European debt conference and the need for such a discussion to take place in order to reduce the high level of indebtedness of some EU countries, including Ireland? There has been much debate about what words were used by the Minister to the ambassadors. The Minister has said his words were taken out of context. However, it is very clear that the Tánaiste and leader of the Labour Party agrees that there would be merit in having a debt conference. Why would the fourth most indebted state in the European Union actively oppose having such a debt conference? This appears to be the current approach of the Government.

Michael Noonan (Limerick City, Fine Gael)
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Prior to the recent elections in Greece, I was asked my view on the need for a European debt conference, given the high level of public debt in Greece. My position was and remains that the best method of addressing the issue is through multilateral discussions, rather than unilateral action. Specifically, in the case of euro area member states, all programme negotiations have been conducted within the Eurogroup and ECOFIN, with IMF involvement as appropriate. My view is that these are the appropriate fora in which to resolve outstanding issues.

The Deputy also questions the high level of public debt in Ireland. While our debt-to-GDP ratio is undoubtedly high, Ireland is in a very different position to Greece when it comes to debt. For a start, our debt ratio has peaked and is now on a firm downward trend. In fact, our net debt amounted to an estimated 91% of GDP at the end of last year. The Government has been very proactive in ensuring the affordability of our debt remains low. For instance, we replaced €9 billion of IMF debt last year with cheaper market debt and the intention is to refinance another €9 billion in the first half of this year. These early repayment transactions alone will deliver a saving of over €1.5 billion over the lifetime of the loans. We also restructured the promissory note, reducing the State's borrowing requirement by €20 billion in the next decade or so. We have succeeded in gaining concessions from our European partners in the form of maturity extensions and lower interest rates. The maturity extension removes a market refinancing requirement of €20 billion for the period 2015-22 and the interest rate reduction delivers savings each year in the annual budget. We have also put the public finances on a more sustainable path. We are on track to correct the excessive deficit this year.

In summary, we have the strongest economic growth in Europe, robust employment growth, a more sustainable deficit and a falling debt ratio. These are the main reasons we can now borrow at record low levels.

Pearse Doherty (Donegal South West, Sinn Fein)
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The Minister has not given us an indication of why it is the Government is resisting the idea of having a debt conference. One thing for sure is that we would not know the outcome of any such debt conference. Whether it would take place in the context of the Eurogroup or somewhere else is largely irrelevant. What is relevant is the need for a shift in thinking at the heart of Europe. The European Union must accept that it has a debt problem.

The Minister spoke about the Eurogroup. Its six-month plan does not contain any significant mention of dealing with debt in a serious way. Will the Minister put the issue of debt on the European Union's agenda? The Union and Ireland are in denial about the extent of member states' debt. It is very clear that the Greek Government wishes to have this conversation and wishes to have it now. It is not a butting of heads or an ultimatum but a desire for the European Union to face up to the reality that there is a problem with the high level of indebtedness of many member states and that it needs to be dealt with in a fair and logical way. However, we have a Government that has closed its eyes and ears to such a call.

Why is the Minister's personal position and that of Fine Gael at such odds with the position of the Labour Party which believes such a conversation should take place? As night follows day, Greece will have its debt written down, whether it is through engineering or otherwise. It will happen because it has to happen. Whether Ireland wishes to be part of this is the questionthe Minister, on behalf of the Government, must answer.

Michael Noonan (Limerick City, Fine Gael)
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The Irish debt position is entirely sustainable. The problem is in Greece, not in Ireland. If one looks at the money raised by the NTMA since Christmas, yesterday a 30-year bond was issued for the first time in the history of the State. Some 380 investors wished to buy 30-year Irish paper, at just over 2%. If we are getting money for 30 years at a rate of 2%, it is very hard to say anything other than that Irish debt is entirely sustainable. A week ago our three-month T-bills were at a zero interest rate. In effect, people gave us €500 million to mind with no interest rate charge. At the end of January a seven-year bond was issued. The rate was 1.867%, well below the rate of 2% for seven-year money. That is what has happened since Christmas.

The position of Greece is different. The talk about a debt conference, in respect of Greece or the European Union at large, arose from the election manifesto of the party that won the election in Greece. However, I have been very careful in reading everything that has been said that I can find by the Prime Minister of Greece and its Minister for Finance, neither of whom has pursued the debt conference idea. They seem to be in discussions with their partners across Europe, the Commission and the ECB. This seems to be the route they are going down. This was the route followed by Spain, Portugal, Cyprus, Ireland and every other country which was in difficulty, namely, to engage with the Eurogroup and ECOFIN.

Pearse Doherty (Donegal South West, Sinn Fein)
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The Minister will be aware that the Greek Minister for Finance tweeted, prior to the election, that the Minister was his first ally on the debt conference issue. This does not just concern what is happening in Greece, although I believe there is a genuine obligation on us, as a member state, to stop the absolute torture being imposed by the European Union. The Minister spoke in the House about arrangements dealt with at the Eurogroup which were supposed to make Greece's debts sustainable. The proposal put €240 billion of debt on the shoulders of that country, of which 11% was used for its benefit. The rest went to repay debt and interest rate charges. There is an obligation on us to stand up in solidarity and say we support Greece in its endeavour to have its debt reduced.

There is also a responsibility on us to state on behalf of our electorate that we also need to reduce the level of debt the State has. In did not mention sustainable or unsustainable debt. I stated we are the fourth-largest indebted country in the European Union and the fourth-largest country which pays interest on debt as a proportion of GDP. It appears that if the Minister's partners in the Eurogroup, the ECB or the IMF told him they would reduce some of our debt he would tell them we are okay and we do not need it. This seems to be the position the Government has adopted.

Michael Noonan (Limerick City, Fine Gael)
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I do not know what the new Greek finance Minister is tweeting because my Greek is very poor.

Pearse Doherty (Donegal South West, Sinn Fein)
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It is in English. I thought the Minister stated he read all of his material.

Michael Noonan (Limerick City, Fine Gael)
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I have friends in strange places so I am looking forward to meeting the Greek finance Minister for the first time at the next Eurogroup meeting in Brussels. It is up to the Greek Government to bring forward proposals on how to deal with its problem. It is not up to the other partners in Europe to be the initiators. It is up to the Greek Government to ask for what it wants. When it asks for what it wants Ireland will consider it, as will every other European country and then we will react to the request. As I stated, I understand the difficulties of Greece as a nation. I am very sympathetic towards the Greek people. I read the Syriza election manifesto, which contains very interesting and illustrative points. A major political party which puts in its manifesto that it needs to give food stamps to 300,000 of its citizens is indicative of the problem in Greece. A country which has 25% unemployment but after 12 months the unemployed no longer receive social welfare payments is a country which has big difficulties. I am sympathetic towards Greece, but it is up to it to ask for what it wants and then we will see whether it can be met.