Dáil debates

Tuesday, 24 March 2015

5:20 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I regret the loss of a German-registered aircraft today in the French Alps, with a total loss of life of approximately 148 or 150 people. On behalf of the country, I have sent a message to President Hollande and Chancellor Merkel following the tragedy.

Last week's European Council meeting focused on three very important issues for the European Union, namely, building an energy union, the economic situation in the European Union, including the European semester 2015; external relations, including the situation in Ukraine; preparations for the Eastern Partnership summit in Riga in May; and the current political and security situation in Libya. Before the meeting opened, the European Council held a minute's silence out of respect for the victims of the appalling terrorist attack in Tunisia the previous day. We extended our deepest sympathy to the victims, their families and the Tunisian people and confirmed our commitment to intensifying co-operation with Tunisia to counter this common terrorist threat, to strengthen Tunisia's promising democracy and to assist its economic and social development.

Energy union was the first item on the agenda. Ensuring Europe's citizens and businesses have a reliable, secure, affordable and sustainable supply of energy is one of the five priority strands of the strategic agenda agreed by the European Council in June last year. The Commission has described the free flow of energy across borders as the "fifth freedom" of the European Union. In order to promote and harness the full benefits of this freedom, we must move quickly and decisively, not least given instability in the European Union's neighbourhood and the realities of climate change. The European Council discussed a number of concrete and measurable steps to deliver energy union and ensure affordable, sustainable and secure energy for all member states.

There was a positive response to the clear roadmap set out in the recent Commission communication on a framework strategy for a resilient energy union, with a forward-looking climate change policy. Ireland has very much welcomed the framework strategy. In particular, we value its vision of an energy union, with citizens at its core, taking ownership of the energy transition, participating actively in the market, empowered and protected as consumers.

The discussions of Heads of State and Government were focused on two key aspects of the energy union project: enhancing energy security and reaping the benefits of the internal energy market. When considering energy security, it may be natural to think first of those countries at direct risk of interruption of gas supplies from Russia. However, enhancing energy security is also of importance to member states such as Ireland which are on the periphery of the energy union, poorly connected to the wider European grid or heavily reliant on a particular source of energy. Diversifying the routes and sources of our energy and putting in place appropriate infrastructure to support that diversification is critical for us.

At my instigation, a specific reference to peripheral regions was included in the section of the European Council conclusions dealing with infrastructure and inter-connections. This is important as we work to ensure that citizens in the periphery can enjoy the same benefits from energy union as those living in areas which are already well connected. While Ireland's geographic location on the edge of Europe may present particular challenges in terms of integration with an energy union, it is also a source of great opportunity for developing indigenous energy resources. Ireland has potentially among the best offshore renewable energy resources in the world, including wave and tidal energy as well as offshore wind. For this reason, Ireland strongly supported the inclusion of a reference in the European Council conclusions to the development of an energy and climate-related technology and innovation strategy, including next generation renewables.

The European Council discussed in some detail the important issue of transparency in gas markets. There have been concerns that some member states might be incentivised to conclude private gas deals with external suppliers which are either illegal under EU law or could undermine the building of energy union and principles of energy security. This is clearly not in our collective interest. The European Council urged that the transparency of gas agreements with external suppliers would be reinforced and compatibility with EU energy security provisions ensured. lmportantly, it was recognised that this should be done while also guaranteeing the confidentiality of commercially sensitive information.

The European Council concluded its energy union deliberations with a discussion on how best to co-ordinate diplomatic action on energy and climate ahead of the critical climate change conference in Paris in December. We noted the ambitious objective set out in the EU's intended nationally determined contribution, which is fully in line with the conclusions of the October 2014 European Council, and urged other parties to the agreement to submit their own contributions by the end of March.

The European Council also held a wide-ranging exchange of views on the economic situation in the EU. The evidence suggests that Europe is now in the early stages of recovery from a period of deep and protracted recession. The year 2015 is the first year since the onset of the crisis in which all member state economies are expected to record growth. Lower oil prices, the ECB's expanded asset purchase programme and the depreciation of the euro are all having a positive impact. That said, it is clear that much remains to be done by member states to ensure that the current recovery is truly sustainable and not merely a cyclical upswing.

In his presentation, ECB President Draghi underlined the importance of continued progress on structural reforms. The more positive economic data cannot be used as an excuse to take the foot off the pedal when it comes to improving Europe's competitiveness and implementing urgently needed reforms. The importance of boosting investment was also underlined, with the European Council welcoming agreement by finance Ministers on a general approach on establishment of the European fund for strategic investments, EFSI. The EFSI is being designed to provide additional risk-bearing capacity to the European Investment Bank, which will allow them to crowd-in private sector finance for new projects. As Commission Vice President Katainen indicated, there is plenty of liquidity in Europe but it is not currently being translated into investment. We continue to see possible opportunities to develop synergies between the new EU investment plan and the Ireland strategic investment fund and the strategic banking corporation of Ireland. These will be considered carefully over the coming months.

I updated European Council counterparts on developments in the Irish economy. The most recent CSO figures point to growth of 4.8% last year. This is our best performance since 2007 and the highest growth rate in the EU. Unemployment continues to fall month-on-month, now down to just over 10%, and we expect it to be back in single digits shortly. Encouragingly, we are seeing significant reductions in both long-term and youth unemployment. There was significant interest from European Council members in Ireland's approach and our experience was cited by a number of colleagues. The recovery we are now witnessing would not have been possible without the willingness of this Government to take and follow through on difficult decisions. It also demanded very real sacrifices by the Irish people. Our priority, looking ahead, is to ensure not just that Ireland's recovery is strong and sustainable but that the benefits can be shared by all.

In my intervention, I also made the point that in developing Ireland's budgetary plans for 2016 onwards, it is important we work with realistic estimates of both the economy's growth potential and future investment needs. I underlined then, and will reiterate here now, that Ireland does not have a problem with the rules of the Stability and Growth Pact. Our issue lies with some of the methodologies and calculations used in the application of these rules. Simply put, our position is that the Stability and Growth Pact rules should support a budgetary stance for Ireland that correctly reflects the outturn and the prospects for the Irish economy. This depends on the sensible application of the rules, ensuring that results are based on reality rather than the application of older trend information. The issue is currently being discussed at a technical level and I hope it will be possible to agree a solution soon. To repeat, we are not trying to bend or weaken the rules in order to get special treatment. The catastrophic experience of our crash must make Ireland among the strongest supporters of the concept of rigorous rules, applied fairly.

The European Council concluded the first phase of European Semester 2015, the Union's annual cycle of economic policy co-ordination. The conclusions provide strong political reinforcement, as expected, for the three key pillars of European Semester 2015. These are boosting investment, a renewed commitment to both national and EU-level structural reforms and continued fiscal responsibility. Procedural improvements have been introduced for this year's European Semester process to facilitate stronger national-level engagement, including engagement by national parliaments and other key stakeholders. I would encourage Members of this House to support engagement with the process and to welcome the session organised by the Joint Committee on European Union Affairs with the Minister of State, Deputy Murphy, earlier this month.

The European Council exchange on economic issues included consideration of the current position in relation to the negotiations with the US on the Transatlantic Trade and Investment Partnership, TTIP. The European Council called on both sides to make every effort to conclude negotiations on an ambitious, comprehensive and mutually beneficial agreement by the end of this year. Leaders also highlighted the need to communicate the benefits of the agreement and to enhance dialogue with civil society. On the latter point, I would mention that an important seminar will take place in Dublin Castle on Friday. Hosted by the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, Commissioner Malmström will address the seminar. Representatives of trade unions, farming organisations and business groups will also participate. The event will launch a report by Copenhagen Economics on TTIP's potential impact on Ireland's economy. This is the type of open dialogue which is essential to ensuring that there is a broad understanding among all stakeholders of TTIP's aims and benefits. This report was endorsed by Cabinet today.

During my visit to the US for St. Patrick's Day engagements, I had discussions with President Obama and US Trade Representative Michael Froman on TTIP. I also discussed this with Europe's ambassador, David O'Sullivan, and the other representatives. On the basis of these engagements, I was able to convey their positive sentiments to European Council colleagues. It is important that Europe and America do not cancel each other out. We should work together on both the simple and the difficult issues in order to conclude an agreement which has the potential to create a couple of million jobs either side of the Atlantic.

The current situation in Greece was not on the agenda for the European Council. However, the European Council did get a short read-out on Friday from President Tusk on a meeting the previous evening which was held with Prime Minister Tsipras, the Presidents of the European Council, Commission, ECB and Eurogroup and the leaders of Germany and France. Prime Minister Tsipras had sought that meeting and it is to be hoped that it will contribute to a clearer understanding by Greece of what is required now, following the Eurogroup meeting of 20 February. Greece is to present a list of reforms within the next few days that will pave the way for constructive engagement with a view to successfully concluding the programme. The meeting may have been useful in toning down the rhetoric between Athens and other capitals.

I expect that yesterday's meeting between Prime Minister Tsipras and Chancellor Merkel will have also have helped in strengthening some trust and confidence between each other.

I spoke directly with Prime Minister Tsipras in the margins of the European Council meeting and I reiterated Ireland's commitment, and that of the other member states, to working with him and with Greece to resolve the crisis. I told him how, in Ireland, we worked with the institutions to ensure that our programme was aligned with the policies of our Government. We not only successfully exited the programme, but have since become the fastest growing economy in Europe. So, I would urge the authorities in Greece to engage now with the institutions in a constructive and swift manner to meet the deadline and return Greece to a sustainable economic footing.

Let me say a few words about Ukraine and EU relations with Russia. It is just over a year since the illegal annexation of Crimea and Sevastopol by the Russian Federation. The European Council does not recognise, and will continue to condemn, this illegal act. The EU has consistently stressed its commitment to the sovereignty and the territorial integrity of Ukraine and its support, including significant financial support, for the reform programme of its Government and in addressing the humanitarian needs of its people.

At the meeting last week, there was an indepth discussion on the latest developments in eastern Ukraine. There has been a welcome improvement in the overall security situation following the signing on 12 February of a package of measures to implement the September Minsk agreements. The issue of sanctions against Russia was a key element of the discussion. As expected, there was agreement that no basis existed for imposing additional measures at this time, given the recent progress in the ceasefire and the withdrawal of heavy weapons from the front line. There was also agreement that there should be no relaxation of existing sanctions, given the fragility of the current situation and the many challenges that lie ahead.

The question of the early roll-over of existing sanctions, originally adopted in July 2014 and enhanced the following September, was considered. The consensus among Heads of State and Government was that a decision on this should be made and clearly linked to the complete implementation of the Minsk agreements, foreseen for the end of 2015. Necessary decisions in this regard will be taken in the coming months. In addition to that, the European Council sent a clear message that the EU stands ready to take further restrictive reassures if necessary. Many leaders underlined that continued unity in our approach to the crisis remained of paramount importance.

European Council discussion also focused on progress in the implementation of the 12 February agreement. There was broad support for strengthening EU engagement with the OSCE mission to enhance its capacity to monitor effectively and verify the ceasefire. Leaders also reiterated the EU's continued support for Ukraine's reform process.

Concern was expressed at Russia's ongoing disinformation campaigns. The European Council asked High Representative Mogherini to prepare, in co-operation with the member states and EU institutions, an action plan by June on strategic communication aimed at countering this Russian disinformation. I was surprised by the apparent sympathy of some Deputies for a Russian approach that had led to actions contrary to international law and the rights of small nations, cornerstones of Ireland's foreign policy since the foundation of the State. I note that similar sneaking regarders are to be found on the extreme anti-European left and right across the Union.

Let me conclude my statement here. In his wrap-up statement, the Minister of State, Deputy Dara Murphy, will address the other external relations issues considered at last week's meeting, namely, preparations for the Eastern Partnership Summit and the current political and security situation in Libya, which is quite serious.

5:40 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Last week's summit involved no significant breakthrough on any of the major issues facing the European Union. While there are very important policies being rolled out or discussed at the moment, they were not on the agenda, rendering the summit itself more of a sideshow than a main event. A defining feature of the last four years has been the Government's non-stop effort to spin everything and to ignore cynically many wider issues that have a big impact here. Developments in Europe have been central to our economic pick-up, yet no member of the Government has ever acknowledged this. There have been banal generalities about wanting Europe to do well, but the direct impact of European decisions on what has happened here has been ignored. This is important because our Government keeps missing opportunities and is denying the people the opportunity to see what could and should be done to relieve debt pressures.

For this summit, a lot of work went into briefing the media about the Taoiseach's agenda, but we know less today than before the summit. In different so-called exclusives, the Taoiseach's staff briefed that he was determined that there would be no pre-election budget giveaways, that there would be major tax cuts and that he wanted the ability to spend up to €1.5 billion more without breaking EU rules. We were told that he was both against extra budget flexibility and in favour of it. That begs the question, which is it. It is just a continuation of the same old trick of trying to be on both sides of the fence at the same time. This is a Taoiseach who voted against the majority of budget changes for which he now claims credit, namely, the budgetary adjustments that underpinned the fiscal recovery, a Taoiseach who spent a decade condemning the failure to spend more and now condemns the fact that so much was spent.

I welcome the additional budget flexibility that has been extended to France and other countries. That reflects the reality of a weak European economy that cannot recover without investment. It is a great pity that the German Government did not also agree to play a part in the necessary flexibility by encouraging more domestic demand.

In a few months, we will witness the next shot in our election campaign through the introduction of a spring Budget Statement. This is an unprecedented use of the Civil Service to prepare a Government's election manifesto, as it will set out four years' worth of spending and tax proposals that have no administrative or legal status other than to serve as an election tool. In fact, the Taoiseach essentially admitted this when he said that it would show what Fine Gael and Labour would do if re-elected.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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This is on the European Council.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Clearly, the decision to seek room for an additional €1.5 billion is the first move towards the spring statement and is intended to allow the announcement of as many initiatives as possible.

The European semester process that the Taoiseach signed off on last week is designed to give transparency and certainty to policy. Due to the Taoiseach's approach, though, we are getting nothing of the sort. A major question is whether the Government intends to ignore recently introduced legislation on budgetary and financial procedures. The Oireachtas has established the Irish Fiscal Advisory Council to review economic projections and fiscal policy before and after major announcements. Why has it been excluded from the discussion? Why is the Government proposing to announce four years of budgets but not willing to have any outside consultation or review?

Yet again we have a case of the Government having a public relations policy but no clear economic policy, a Government that did not deliver recovery but did everything possible to make it as unfair as it could be. The primary objective for the Government is to claim credit for things and stop the more important debate of helping people to understand what has been happening. The Taoiseach continues to sell a fairy tale of his decisive actions and steely negotiating skills when the truth shows nothing of the sort. In terms of the reduction in interest rates for all bailout loans to all countries, the reduction in borrowing costs and the vital policy changes of the ECB, particularly of its president, Mr. Mario Draghi, nothing in any of these decisions was influenced by our Government. Reductions negotiated by others were automatically extended to Ireland and were four times larger than for what our Government asked. As the Taoiseach admitted at the time, he held no discussion with Mr. Mario Draghi before the latter's appointment.

The implementation of a quantitative easing policy by the ECB in the face of opposition by some countries is a decisive move by an organisation that is now willing to do whatever it legally can to try to spark a wider recovery. It is not enough and it is at best a short-term measure that carries some dangers, but Ireland should welcome it and call for other institutions to do more.

The failure of the Greek economy to recover is the most striking example of the need to change policies. It appears that, as acknowledged by the Taoiseach, all significant discussions last week took place in a smaller meeting, something that in itself is not a good development. The situation today is more serious than it has been at any point in the past five years. Fianna Fáil has been arguing for the past two years that Greece needs further substantial action on its debt if it is to be given a credible path to growth. This is not to say that Greece should be allowed do whatever it wants with other people's money, but there is a need for a long-term solution. The evidence is that such a solution is not close. In fact, it is now reasonable to ask whether Syriza wants to find a solution or is just trying to manage the blame game for when the full crisis comes.

The Syriza-led Government’s actions in recent weeks have not shown that it is committed to finding a solution which respects other countries. It is fully entitled to seek to end austerity but equally it promised before the election that it had a detailed reform plan ready to implement and that it knew exactly how to ease the debt burden but not endanger Greece’s commitments to the euro and the EU. The failure to produce even the most basic reform plan is striking. Slogans which get a crowd going are not the same thing as policies which can be implemented. Wiring tourists to catch VAT fraud is not an initiative which will deliver the type of revenue Greek public services need. It is reported that Prime Minister Tsipras even objected at the summit to international inspectors being able to check the current status of Greece’s Government accounts, claiming that this was an affront to sovereignty. He did so in spite of the fact that every member of the IMF has been subject to this scrutiny since the organisation was founded.

The new policy of aggressively attacking and insulting other governments may well simply be part of managing a diverse range of party factions. Whatever the origins it is undermining the possibility of building a consensus for helping Greece. The statement by a Minister that Greece would unleash immigrants on Europe if it did not get what it was asking for was not only wrong, it was playing to the worst type of fears currently being exploited by extremists throughout the Continent. Another Minister said that Greece wants €350 billion in reparations for past wars, including €20 billion supposedly still owed under the Treaty of Versailles. This is the type of rhetoric designed to create divisions, not to persuade.

It is clear that the new government has a mandate to change direction, but other governments also have democratic mandates and they also have the right to represent the interests of their people. It appears that the Eurogroup is willing to change the terms of Greek debts quite significantly and, in doing so, lift the short-term and medium-term impact of these debts. What is not yet clear is whether Greece actually wants to negotiate. For the sake of the people of Greece we should all hope that what we have been seeing is temporary. Prime Minister Tsipras’s letter of last week saying that Greece is running out of money is sobering. It may well be that an agreement cannot be reached, but it would serve everyone’s interests if the sloganeering and aggression were put aside for a few weeks and there was a genuine effort to find one.

I welcome that the summit discussed and refused to lift current sanctions on Russia for its invasion and partition of Ukraine. The real substance of the Minsk accords revolves around whether Russia will allow Ukraine to regain control of its own international border. It is ominous that the Russian-installed rebel leaders announced last week that they want Russia to lead a so-called peacekeeping mission to Donetsk and Luhansk. They have rejected the proposal that a genuinely independent peacekeeping force from the United Nations or the OSCE be sent, and they continue to deny OSCE monitors access to many areas. In the four other frozen conflicts which have involved the de factopartitioning of states formerly under the imperial control of Russia the installation of Russian peacekeepers has been the moment when the sovereignty of the state was ended in the enclave. In the occupied parts of Georgia this has gone even further.

The sanctions have had an impact. Kremlin-linked oligarchs are the ones who have suffered the most and the sanctions have shown that Europe is not willing to simply do nothing in the face of the invasion and partition of Ukraine. We should also note that the deterioration of human rights in Crimea continues. Two people have been convicted for the crime of flying the Ukrainian flag. The Tatar minority is being suppressed. Freedom of speech is disappearing. In the face of this, President Putin has confirmed that he and the Russian state invaded Crimea before the illegitimate referendum. He has also continued his recent bullying policy towards other states, making trial bombing runs against a number of neutral states including Ireland and Sweden. At the weekend his Government announced that Denmark would be the target of nuclear attacks if it went ahead with a missile shield.

Sinn Féin has, of course, maintained its policy of refusing to stand with Ukraine against its partition by Russia. It continues to use the weasel words of blaming the United States and Europe while steadfastly refusing to make the simple statement that Russia should get out of Ukraine. As predicted a fortnight ago the massed ranks of Sinn Féin representatives that went to the United States last week did not repeat their attack on the Obama Administration while they were busy collecting cheques. Deputy Adams even took the time to have a hissy fit over the fact that the US Administration was not making a senior enough official available to receive him in Washington.

It remains the case that there is an extremist alliance in Europe standing with Russia against the citizens of neighbouring countries. Last week a Kremlin-funded group held a conference in St. Petersburg where the British National Party, Golden Dawn of Greece and other fascist parties spoke up in favour of Putin’s actions. At the weekend the French Front National used an €8 million soft loan from Russia to fund regional election campaigns. There is, in fact, almost no hard right or hard left party in Europe which does not support the increasingly authoritarian and aggressive Putin regime. I welcome the element in the Taoiseach's statement relating to the concerted effort by Europe to deal with Russian disinformation on the Continent.

Deputy Boyd Barrett need not take this as applying to him as he did in our last session. He is unusual in the Irish Left in having protested outside the Russian Embassy in the past. However, he too is guilty of applying false equivalences in this case. Nothing Europe has done in any way justifies what Russia has done to Ukraine. The Ukrainian people want to live in a free, united, democratic and European country. They have voted for this time and again and they have voted for the EU association agreement in overwhelming numbers. They gave up their nuclear weapons in return for a promise that their borders would be respected. It is our duty to stand with them and we should support a significant expansion in direct aid.

On the subject of energy, the summit moved the agenda along in a formal way. I recognise the central and vital necessity of an energy union because unity of purpose across the European Union is essential for our energy security into the future. I also welcome the additional focus on the conclusion of bilateral agreements outside of the European energy union itself. However, the focus is not yet active or urgent enough to tackle the twin crises of climate change and energy blackmail, which go to the heart of a lot of the political instability and geopolitical challenges which Europe and the European Union currently face.

5:50 pm

Photo of Brian WalshBrian Walsh (Galway West, Independent)
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Deputy Adams will share his time with Deputy Peadar Tóibín. Both speakers have seven and a half minutes.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Once again Greece was a focus in the most recent European Council meeting. Although, as the Taoiseach acknowledged, the issue was not officially on the agenda because of the refusal of some countries to formally discuss the matter, an important side meeting dealt with it. The Greek Prime Minister, Mr. Alexis Tsipras, briefed French and German leaders about the humanitarian crisis in Greece. He made it clear he wants to establish common ground in tackling this humanitarian crisis. He is also dissatisfied that officials from the creditor institutions have reportedly drawn red lines which are preventing Athens from making progress. It is clear that Mr. Tsipras is concerned that the ECB is attempting to strangle the Greek economy and handcuff the Government.

Greece's debt is completely unsustainable. So was ours, but instead of focusing on how to tackle Greece's debt and the humanitarian crisis the EU institutions are attempting to force the Greek Government to impose austerity. The ECB is not acting as a lender of last resort as it should. Instead, it is imposing restrictions which prevent Athens issuing more short-term debt to tide itself over.

This State and Greece have both had unfair debt burdens imposed their citizens, in our case with the compliance of our Government. Instead of standing with the Greek Government in its attempts to tackle its humanitarian crisis the Taoiseach has consistently taken the side of the European elite and the ECB against the people of Greece. He has moved from being an architect of austerity in our own island to being an adviser on how it can be imposed on other European states.

The Taoiseach said he told Prime Minister Tsipras that he worked with the institutions to ensure his programme was aligned with the policies of his Government, but did he tell him that he was elected to implement totally different policies? Did he tell him that he was elected with a mandate which is significantly different from the policies he is now imposing upon people here? Prime Minister Tsipras is acting on the basis of the mandate he received.

6:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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We reversed the minimum wage, reduced VAT and reduced unemployment.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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An bhfuil an Taoiseach ag éisteacht liom?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Tá mé ag éisteacht go cruinn leis an Teachta agus tá mé ag tabhairt freagra.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Iarraim ar an Taoiseach a bheith ciúin agus a bheith ina thost.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Ní raibh an fhírinne á rá ag an Teachta ar chor ar bith.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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The Taoiseach's approach at EU level, and this has been consistent since he became Taoiseach, has never been in the interests of the citizens of this State and his attitude to the Greek Government, and it was echoed by the Fianna Fáil leader, is clearly motivated by his own narrow electoral interests. His approach does not represent the sentiments of the majority of Irish citizens. Sinn Féin has been very clear in extending our support and solidarity to the Greek people who have stood up against the vested and powerful interests in the EU and the ECB. It is a pity that the Taoiseach's Government did not show the same confidence, the same sense of self-respect and the same sense of duty to Irish citizens as the Greek Government has shown to theirs.

The Taoiseach's reported comments to Prime Minister Tsprias in which he tried to peddle Ireland's two-tier economy, which is facilitating growing inequality and social disadvantage, as some sort of positive model - bearing in mind that earlier the Taoiseach could not answer a question from me as to how citizens with disabilities have been left waiting for two years to have very modest support - shows, in many ways, the conservatism of this Government.

Just before the European Council meeting took place there was elections in Israel and the right wing Likud Party received the highest share of the vote and Benjamin Netanyahu is attempting to form a coalition government this time. However, in the run up to last week's election he stated that he will continue to do everything he can to deny the Palestinian people their right to independence and self-determination. On the morning of the vote Mr. Netanyahu also released a video condemning Arabs for turning out in high numbers to vote and blaming this on foreign funded non-governmental organisations, NGOs. This was both racist and anti-democratic. The EU and other countries worldwide have an important role to play in ensuring the two state solution is supported and promoted, and I understand this is the view of the Taoiseach's Government. Were Mr. Netanyahu's comments discussed at the Council meeting? I welcome the recent visit there of the Minister for Foreign Affairs and Trade, Deputy Flanagan. The Irish Government has been vocal in its support for the two state solution but has sat back for far too long on the recognition of Palestine.

Towards the end of last year, as the Taoiseach will recall, motions were unanimously passed in the Dáil and the Seanad calling on the Taoiseach's Government to urgently recognise the State of Palestine. He has yet to do this. Why is that the case? Are Mr. Nehanyahu's comments not are a call to action? Do we not need to send a clear message to the outgoing or incoming Prime Minister of Israel, whoever he or she might be, that they do not control or own Palestinian sovereignty. That right belongs solely to the Palestinian people. Will the Taoiseach now, as a matter of urgency, set the wheels in motion to ensure that this State becomes the 136th state to recognise the State of Palestine?

Recently, my party colleague and the chairperson of the European Parliament's delegation to Palestine, Martina Anderson MEP, was denied access to Gaza by the Israeli authorities. This is the second time she and delegations of European parliamentarians have been denied access to that part of the Palestinian territories. It is unacceptable that an official EU delegation to Palestine is refused entry to inspect the dreadful situation there. I know the Taoiseach was there some time ago and we all know that the situation has deteriorated since then. It is unacceptable given that the EU is the largest financial donor to the Palestinians and that a delegation of the European Parliament should not be allowed to visit it. I was also denied access on my last visit to that region. Will the Taoiseach formally complain to the Israeli ambassador in Dublin about their continually refusing entry to Gaza to Irish political representatives?

I also note the Taoiseach's remarks on the conflict in Ukraine. Sinn Féin welcomes the Minsk agreements, the ceasefires and the potential bridge to a genuine peace process but there has been firing from both sides on the front line which is undermining the ceasefire. Will the Taoiseach agree that the onus is on all sides and on international actors to reduce tensions in the region, to focus on resolving the conflict and to urgently tackle the humanitarian crisis that has been created in Ukraine?

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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From reading the conclusions of this European Council meeting it is welcome that Europe is both promoting the use of renewable energy among member states while also respecting member states who choose to use a different energy mix within the state that is tailored to their own needs. The White Paper on Energy Policy in Ireland, which is currently being drafted, will hopefully show that while wind energy is an effective source of renewable energy, we need diversity in the supply of renewable energy. We need to investigate the development of solar, wave and tidal energy. It is also welcome that a focus is being put on energy storage. As Ireland is an island nation, we have a lack of grid interconnection with the rest of Europe. It is important we focus on the development of energy storage systems, which would be of major significance to this country.

The improvement in energy efficiency in the housing sector is also a massive issue. The improvement in the level of energy efficiency to date has been very poor. It is also very important in tackling fuel poverty. I urge the Government to focus resources on alleviating fuel poverty with regard to energy efficiency. The most vulnerable in society should not be sacrificed during the transition to renewable energy. There needs to be a European-wide definition of fuel poverty and a sufficient strategy on how it should be tackled.

We learned recently that following years of loyal and unstinting commitment to the EU's austerity rules, regardless of their effect on the social and economic fabric of the State, the Government has now got a problem with the EU's budgetary rules. It is a little late in the day for the Minister, Deputy Michael Noonan, to be worried about the EU's austerity rules. What is shocking for most of us on this side of the House who have argued that those rules have been inefficient and unfair in the effect they have had on the poor and vulnerable is that the concern about the rules and the tough talking that is now taking place is due to the fact that the Government has made the promise of a tax cut to a certain income bracket, one that the members of Government inhabit. Where was the concern when the austerity rules were leading to a third of a million people emigrating? Where was the tough talk with the troika when the troika-inspired cuts were shrinking the economy? It is a little late in the day for the Taoiseach to be getting worried about austerity rules. He campaigned for them and implemented them in this State regardless of their social and economic cost during the past four years.

Last summer, Italy and France started to campaign for some flexibility and we in Sinn Féin called on the Government to back them, but all we heard was stony silence. As always, the Government follows; it is simply incapable of taking a lead in this issue. I imagine the Taoiseach's EU counterparts raised an eyebrow or two when they heard that suddenly Ireland wants to object to these rules. The Taoiseach and the Government have loyally implemented austerity rules on cuts and reductions without protest. I am more inclined to believe that this sudden turn of face, this new road to Damascus conversion by the Government has all got to do with the issue of expenditure benchmarks. This rule, which will apply to Ireland's budget in October, will, according to a reply from my colleague, Deputy Pearse Doherty, limit Ireland's new expenditure to €400 million.

Given that the Government has promised it in another irresponsible and unfair tax cut targeting higher earners, it is scrambling for some leeway to fulfil commitments to its narrow sector of society.

The Government is one of the most divisive in the history of the State with regard to the two-tiered society it has created. Over the past years it is very clear that we have a Government of the haves against the have-nots, with a Government of private health against public health care and the Government of bank debt and bond debt against household debt. This is a Government of high-paid earners against low-paid earners and these are totally in line with the Government's approach to the next budget.

We should have leeway. Sinn Féin is the party of self-determination. We should have leeway with regards to improving our public services, abolishing regressive and unjust taxes and tackling homelessness. Over Christmas, the Dáil was inflamed by the need to tackle homelessness. In my county, the budget meant to build new houses has not arrived at the end of the first quarter of the year. The Government had no difficulty in undermining access to public services. People have bad access if they want to access public health services through the accident and emergency units because they must wait on trolleys. People also have problems with access to elective surgery-----

6:10 pm

Photo of Brian WalshBrian Walsh (Galway West, Independent)
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I remind Deputy Tóibín that these are statements on the European Council.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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This is connected to the European semesterisation, which is connected to the budget.

Photo of Brian WalshBrian Walsh (Galway West, Independent)
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The Deputy has one minute remaining.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Perhaps that can be extended because I have been needlessly interrupted by the Acting Chairman.

The European Council called on the EU to make every effort to successfully conclude TTIP negotiations in 2015. The rush to complete this agreement is unprecedented. A massive tide of popular opinion is turning against TTIP across Europe. Is that why the European Council called for the EU to hurriedly finish negotiations? It is happening in the dark, as there is no transparency. The rush to finish it will create a further lack of transparency. The Taoiseach is shaking his head but the European Ombudsman, Emily O'Reilly, made a recommendation on 7 January 2015 that there should be greater public access to key TTIP negotiating documents. In response to a question raised by Sinn Féin in the European Parliament yesterday, the Commission stated that documents setting out the position of the EU on key aspects of the TTIP negotiations, such as public procurement, will not be made public. Is the Taoiseach not concerned that the European Commission is ignoring the Ombudsman's advice? The simple fact of the matter is that the European public have a fundamental right to access those documents, to know what deals the European Commission is making on our behalf and what lobby groups have the inside track on these negotiations.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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I propose to share time with Deputies Clare Daly, Catherine Murphy and Boyd Barrett.

That departing Taoiseach spoke in glowing terms about TTIP, calling it an ambitious, comprehensive and mutually beneficial agreement. Recently, a legal document from the regulatory co-operation chapter of the agreement was leaked, which makes the Taoiseach's statement seem naive or willfully deceptive. The leaked document clearly outlines how TTIP is being used to undermine democracy by putting the concerns of corporations before the interests of the people Governments are supposed to be serving. Business Europe and the US Chamber of Commerce, as far back as 2012, have been lobbying for the regulatory co-operation mechanism. They want to establish a private forum that will come into being after TTIP has been implemented, where any legislation or regulations proposed by any EU member state that affects their profits can be brought to their attention before the legislation or regulation comes into effect. To quote Corporate Europe Observatory "This means businesses, for instance, at an early stage, can try to block rules intended to prevent the food industry from marketing foodstuffs with toxic substances, laws trying to keep energy companies from destroying the climate, or regulations to combat pollution and protect consumers."

On top of this, laws and regulations that affect trade will have to pass an impact assessment. If it is found that the interests of corporations are infringed in any way, a report by the proposed regulatory co-operation body will cite a detrimental impact on transatlantic trade. The new rules also outline how a regulatory exchange must take place if a party requests it on the basis that planned or existing regulatory acts of member states are likely to have an impact on trade and investment. When it was pointed out by the director of trade policy today that the leaked document has yet to be finalised, striking articles are contained in the chapter as it stands and they pose grave questions about the value of democracy in the western hemisphere.

In another attack on democracy coming from the EU, which is repeatedly and publicly supported by this Government, Greece is denied the autonomy of a breathing space to construct an alternative to destructive austerity. Any economist worth his salt and not in the pay of the financial sector knows that austerity only serves the short-term interests of the elite and furthers the gap between rich and poor, which serves no one in the long term. The newly elected Greek Government was given a clear mandate by the public to find an alternative to austerity. Syriza is trying to place the will of the people before the interests of the elites and the banks and is paying a high price for it. The rules of engagement in the eurozone are rigid and the masters in Berlin and Brussels allow little space to negotiate a path between the extremes of austerity or euro exit. The Greeks are looking at a situation where they must choose between denying the democratic mandate and breaking all their promises by submitting to the demands of the unelected yet most powerful institutions in Europe or staying true to the ideals of democracy as best they can in negotiating the turbulent waters of an exit from the eurozone. What is frightening is the manner in which the Brussels group, the troika and Germany have behaved. They show little or no mercy and no compromise. The brutality of the response to Greek demands illustrates that the EU no longer has an interest in democracy. Whenever there is an election and whoever gets elected and whatever they promise their people, they must subordinate everything to uphold the logic of the markets as dictated by the only true sovereign these days, which resides in Frankfurt, Brussels and Berlin. God be with the days when Europe was a place where all nations were treated fairly.

Photo of Clare DalyClare Daly (Dublin North, United Left)
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I am not the only one who was embarrassed beyond belief by the conduct of this Government in its approach to our colleagues in Greece. The Government is behaving like the teacher's pet, sitting up in the front row sniggering and delighting in the teacher turning on the poor boy at the back of the class and giving him a beating. It is pathetic. I thought was unrivalled until I listened to Deputy Martin. The attitude of Fianna Fáil is even worse. Not content with the teacher giving the young fellow a beating, they want the young fellow to be blamed for it.

The attitude is in sharp contrast to the attitude of ordinary Irish people. Instinctively, they feel solidarity with our brothers and sisters in Greece, which was graphically displayed on the protest on Saturday, where many Irish people who marched against this Government's austerity draped themselves in the Greek flag. It was an instinctive solidarity and it captured the real idea of what the EU ideal was supposed to be, a Europe of equals and where opportunities were given to those who need the most, the weakest. We have come a shocking way from that.

I want to make a couple of points about Libya. We heard the Council discussed the idea of supposedly stepping up support for Libya, even with the idea of sending in a security mission, which could even possibly involve troops from Ireland. This would be almost beyond belief when some of those going into clean up the mess were directly responsible for it in the first place, with the active role of the French and British in the bombing and decimation of that country. We must look at what the liberation has caused. Libya is a hellhole and the centre of ISIS activity, including a public beheading of 21 Egyptian fishermen and workers one month ago. The video showing it was released on the fourth anniversary of the so-called Libyan revolution.

In that context, all of the things the west accused the Gaddafi regime of being responsible for are being repeated by that which has replaced it. I refer to massacres, the shelling of residential areas, car bombings, mass arrests, torture, the theft of oil and other natural resources, etc. There are even two governments in place there and these comprise warring factions. The first of these is led by a stooge of the CIA who supposedly is fighting against an Islamic threat now and who fought with that agency against Gaddafi in the past. Libya was previously the wealthiest country in Africa. Its people had a high standard of living, access to free health care and education and there was a good electricity supply. All of these have been utterly decimated as a result of the conflict.

Some 1 million refugees have fled the country and entered Tunisia and a future 400,000 Libyans have been displaced. I understand the Council discussed the number of illegal immigrants fleeing into Europe. Some 200,000 people entered Europe illegally last year, as opposed to 60,000 in 2013. Why do the members of the Council think all of those immigrants are coming here and seeking sanctuary? It is because of the horror that has been unleashed in their own countries. President Obama told us that this is the new humanitarian model but what is now in place is absolutely reprehensible. The idea that the EU is going to go in and save the day and that Ireland might play its part in this regard is a joke.

My final point relates to Ukraine. I really do not want to start talking about this issue because I could be here for the remainder of the evening. I do not support President Putin in any way but the remarks made by Deputy Martin were unbelievable. The idea that NATO is blameless is just not acceptable, particularly when one considers that 26 out of the 28 NATO countries are located in Europe and that 12 of these are in eastern Europe. Deputy Martin indicated that he is upset about an extremist far-right alliance supporting Russia but he had absolutely nothing to say regarding the far-right fascist elements inside the Ukrainian Government. What we criticise is the lack of balance relating to and inconsistency of these programmes and the fact that those in Europe support one side when they should stay out of other people's business.

6:20 pm

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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I wish to focus on two aspects of the matters discussed by the European Council, namely, energy union and jobs and growth. I am trying to square the circle in respect of those issues and the fiscal policy being pursued by the European Union. Rigid adherence to debt-to-GDP ratios in the context of dealing with the debt issue is actually undermining any prospect of delivering a different type of economy that will be less carbon dependent into the future. There is an urgent need for a European debt conference that will deal with this issue in a more comprehensive way. I, too, am embarrassed by the way in which the Government is interacting with Greece. Ireland should show solidarity with a country which is in such difficulties, particularly as we understand the impact those difficulties can have on citizens. Like Greece, France and Italy have serious levels of debt.

Let us consider the kind of fiscal expansion that is going to be needed in order to facilitate the development of a different kind of Europe that will deal with the issue of energy. I refer here to what is going to be required in areas such as transport and retrofitting of buildings. In Ireland's case, it is going to be necessary to invest in the development of an offshore energy industry. The raw materials are there in abundance to allow Ireland to deliver but it cannot do so because it does not have the ability to raise the kind of capital necessary to facilitate the kind of fiscal expansion required. A development such as that to which I refer would change this country radically - not just for now but in the years to come - deliver the jobs and growth that are needed and give us hope for the future. The NESC report on moving transitioning into a carbon-neutral society identifies offshore wind and wave energy as a source of major opportunity into the future. At present, we import €7 billion worth of oil and gas each year. Our dependency rate in respect of fossil fuels stands at 90%, whereas across the European Union the average stands at 55%. We need to take urgent action in respect of this matter or we will be obliged to pay in hard cash when we cannot meet the international obligations up to which we and the European Union have signed.

In practical terms, if we were to invest in developing a DART underground service, this would transform the public transport system and deliver on some of our commitments in respect of the area of transport. If we opted for the underground option, then the number of passenger journeys would rise from 33 million to 100 million. This could make the single biggest difference to the transport system in this country. We only ever talk about retrofitting homes. However, we could reduce our oil and gas imports if we were to take action in this area.

That to which I refer will not be achieved in the absence of a rational fiscal policy at European level, where debt is treated in a more long-term way and where some of it is either parked or written off in order that we might develop a different kind of Europe. We must take the shackles off if we are going to do as I suggest and deliver jobs and growth in areas in which they really do need to be delivered.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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The Taoiseach's demeanour and behaviour in respect of Greece at the most recent Council meeting were nothing short of despicable. Regardless of where this all ends, the Greek Government has at least challenged the narrative of austerity that has done such damage, crushed the ordinary people of Greece and given rise to a desperate humanitarian crisis and asked that the possibility of introducing alternative policies that will not require future suffering on the part of ordinary people be considered. Instead of stating that the Greeks are absolutely right - particularly in light of our own humanitarian difficulties, namely, the unprecedented housing crisis, the unbelievable increase in child poverty levels and a similar increase in the number of suicides related to the economic crash - showing solidarity with them and appealing for relief, latitude and an end to policies which cause human suffering, the Government chose to stab them in the back. We have aligned ourselves with austerity bullies such as Angela Merkel and Mario Draghi, and the remainder of the financial, corporate and political elite throughout Europe, who are willing to sacrifice the livelihoods and well-being of ordinary people in Greece and, for that matter, in Ireland. That is absolutely shameful and treacherous and not just in the context of the Greek people but also regarding our own citizens.

Deputy Clare Daly referred to the demonstration which took place at the weekend. The Minister of State really should have been in attendance because he would have seen people holding aloft the Irish flag in one hand and the Greek flag in the other. It was fantastic and demonstrated both instinctive internationalism and the sense of international solidarity between people in this country and their counterparts on the other side of Europe.

The Taoiseach, Chancellor Merkel and all the rest of them are playing with fire in terms of what they are doing. If the people who are opposed to austerity and who stand on the tradition of solidarity between different nationalities against austerity do not prevail, then that will create the space for the far right to grow. I was interviewed by a German journalist who is based in Saxony in recent days and I must admit that what he told me was terrifying. Immigrants are now afraid to walk the streets of the major cities in Saxony, such is the level of growth among Pegida and other organisations on the fascist far fight.

It is scary for immigrants to walk on the streets. The fascists are able to mobilise up to 60,000 people on the streets in Germany. We have not seen figures like that since the 1930s. The growth of the far-right in Greece and other parts of Europe is a direct result of austerity. In the absence of an alternative being offered by the political establishment, the anger and despair at austerity is beginning to express itself in the most disgusting and frightening ways. The Minister of State is playing with fire. He should stand with the people who are fighting austerity rather than stab them in the back.

6:30 pm

Photo of Brian WalshBrian Walsh (Galway West, Independent)
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We will now take questions from lead spokespersons.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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Notwithstanding the concerns expressed by a number of colleagues about the comments from my leader regarding those who have been supportive of Russia's position in Ukraine, the Ukrainian people have on several occasions voted to be part of the European Union. They voted for EU association agreements in overwhelming numbers. It is clear that the democratic wish of the Ukrainian people is to be part of the European Union. The comments from Fianna Fáil Members should be understood in that context. I do not ask the Minister of State to espouse Fianna Fáil's position but will he confirm that the position he and most other people are taking is based on a recognition of the democratic wishes of the people of Ukraine?

Photo of Dara MurphyDara Murphy (Cork North Central, Fine Gael)
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I was here for the debate with the Ukrainian ambassador and the other ambassadors. We have long espoused the view that the opportunity afforded to us in the 1970s should be shared with others. It is a noble ambition to share our common values of democracy and freedom. Deputy Martin's comments were in line with the views of the Government. I am disappointed that some contributors ignored the aggressive role that President Putin and his Government have played. The people of Ukraine will need to make significant steps in reforming their country's structures, and they are working with the European Union on the accession agenda. This will be discussed in the context of the eastern partnership talks which will take place in Riga in May. The scenes we saw in Ukraine, with the European Union flag being flown, represent a noble ambition on the part of the people of that country. We have an obligation to support that ambition and to stay united. The majority of opposition parties across the European Union support a united approach to sanctions against Russia. It is important that we stay united because that approach is bearing fruit.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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It is hard to be here some days. The Minister of State, Deputy Dara Murphy, and my good friend, Deputy Dooley, seem to have forgotten that the trouble in Ukraine began when the elected government was overthrown, with serious financial assistance from the US. That was when most of the turmoil in Ukraine began.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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Deputy Wallace's solution is to take Russian money.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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I do not recall interrupting Deputy Dooley when he was speaking. The Taoiseach referred to the fact that Russia has broken international law. I agree with him. Russia often breaks international law. However, I do not think it has had quite as many opportunities to break international law as the United States. If one considers the number of countries that have been invaded, bombed or had their sovereignty challenged by the US in the past 50 years, Russia pales by comparison. We break international law by allowing US military planes to pass through Shannon Airport. We allow the place to be used as a US military base. It is a landing pad on the way to war. We facilitate the use of Shannon for military purposes.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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He is Putin's representative in Shannon.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Would he close it down?

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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The original invasion of Iraq in 1991 led to the death of more than 1 million people. It was horrific. Not happy with bombing the country, the US bullied the UN into introducing sanctions of such severity that Denis Halliday, who was in charge of the UN's humanitarian campaign, resigned on the grounds that his programme was complicit in genocide. The US invaded Iraq again in 2003, with Irish support. We were part of the coalition of the willing. Bertie Ahern told us we were not really participating but we allowed Shannon to be used by the US while it killed another 700,000 civilians in Iraq between 2003 and 2011. During his term of office, Barack Obama has bombed seven, predominantly Muslim, countries. This is a man who won the peace prize because he promised to put an end to the nuclear arms race. He cannot even get Israel to sign up to non-proliferation agreements. He has now agreed to expand the nuclear arms race again.

Blair and Bush are guilty of war crimes. Obama is guilty of war crimes. Putin is guilty of war crimes. Assad and Netanyahu are guilty of war crimes. We take sides. They are all bad people who have caused unmitigated disasters around the planet. We should not take any side. I have no respect for any of these people but we are getting involved, and we are not neutral. How can the Taoiseach give out about Russia's breaches of international law without bringing a balance to the issue? He was over in New York kissing Obama's backside and there was not a word about the fact that the man is guilty of war crimes. Where is the balance?

It breaks my heart that we cannot stay out of these matters and take a neutral position of working for peace. The arms race and the militarisation of the planet is causing untold disaster for millions of people. Old people, women and child suffer the most because they occupy most of the buildings that are destroyed by bombs. Able bodied men are not usually in the buildings when the bombs drop on them. Women, children and the elderly are the ones who most commonly die. It is crazy. I urge the Minister of State to bring balance to these matters by restoring our neutrality.

Photo of Brian WalshBrian Walsh (Galway West, Independent)
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I do not know if there was a question.

Photo of Dara MurphyDara Murphy (Cork North Central, Fine Gael)
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The European Council did not discuss our relations with the United States of America. It is frustrating, when we are discussing serious issues for elderly people, children and citizens generally in Ukraine and the difficulties arising for everybody in trying to de-escalate the conflict between Russia and Ukraine, to repeatedly hear about every other alleged improper act by other countries.

In regard to countries on the European Continent that share the ambition to be part of the European Union, it is in Ireland's interest that their borders, their integrity and their democracies are protected and assisted in being protected. As Deputy Wallace pointed out, we are a neutral country and have always said we do not believe there can be a military solution to the problem in eastern Ukraine. That said, the EU has significant economic tools at its disposal as a family of nations to ensure that the rule of law and the democratic rights and ambitions of the people of Ukraine are protected. We will continue to play our part in that.

In respect of Shannon, the Deputy will be aware that for almost 50 years the arrangements relating to the use of Shannon Airport have been in place and do not form any part of a military alliance. The arrangements are governed by strict conditions which are employed to ensure compatibility with our traditional approach of military neutrality, which involves non-participation in military alliances. As I have said here previously, as a family of 28 member states, and notwithstanding our neutrality, the position regarding Ukraine is different. The EU must be more engaged with crises and conflicts that take place on our borders, because these impact our partner member states that border with Russia and other accession countries and eastern partners. Therefore, the Government fully supports the unified approach we have seen to date.

That is not to say we feel there is not potential for reform regarding actions in Ukraine, whether structural or economic. The EU is working with Ukraine and I have attended meetings where reform and supports are encouraged. Indeed, Ireland and the EU have given significant financial aid to date. I believe it is unhelpful to try to muddy the waters by suggesting some excuse or rationale whereby there can be some blurring regarding who is the aggressor and who is the victim in this instance. It is the shared view of the EU that Ukraine and the Ukrainian people are the victims and that as a smaller state, they need and will get the protection of the EU.

6:40 pm

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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Other issues raised at the Council related to future energy policy and jobs and growth. How can these possibly develop in the economic environment that now pertains throughout the EU and with the level of debt in so many countries, even larger countries like France which has a debt to GDP ratio of approximately 93%? How can we have the kind of fiscal expansion required into areas that will deliver on a carbon neutral economy without investing in retrofitting housing, developing an offshore energy industry and upgrading public transport to a beneficial level? How can we square that circle?

I am looking at this from an Irish perspective, but we could make a similar case for most other European countries. How can we live up to the obligations we have signed up to in terms of being carbon neutral in the future while being so hamstrung by the level of debt? Does the Minister not believe that a debt conference is critical so that we can examine the issues more completely, rather than to look at the issues from the point of view of debt? Should we not look at how we can grow in a different way in the future?

Photo of Dara MurphyDara Murphy (Cork North Central, Fine Gael)
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Deputy Murphy raised this point earlier and I fully agree with the sentiment and the point she is making. In Ireland and across the European Union we have had a protracted period of under investment in renewable energy sources and the targets we set ourselves a number of years ago will not be achieved. The energy conference in Paris in December will present an opportunity for the world to look again at the direction we are taking in regard to achieving a more sustainable environment.

The Deputy made a valid point regarding the complementary nature of the ambition of achieving our energy targets and achieving growth. I believe the recently announced investment package by Jean-Claude Juncker should be targeted at energy and renewable projects. At the European Council last Friday, the Taoiseach succeeded in having a clause inserted in the text that proposes that poorly connected and peripheral countries should be given extra consideration in respect of projects. Therefore, there is potential within the new fund to consider the complementary ambitions of addressing areas where Europe and Ireland have under invested and of helping achieve the type of growth that will come from that spending. The interconnection project between Ireland and France could benefit in this regard. I believe the application on this project is at an advanced stage and it could supply energy for up to 500,000 people.

A number of weeks ago, we had interesting discussion in Ringaskiddy with the French Minister for European Affairs on the potential for the development of marine energy, whether from wind or wave. This was not just in regard to the Irish coast. France has an extensive coastline itself and shares our ambition.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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As we are approaching the end of the time allowed for this discussion, the Minister of State may want to make his concluding statement.

Photo of Clare DalyClare Daly (Dublin North, United Left)
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Are we not just coming towards the end of time for questions?

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Yes, but we have a time limit.

Photo of Dara MurphyDara Murphy (Cork North Central, Fine Gael)
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I believe I have two more minutes for questions and then five minutes to wrap up.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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A Member cannot raise a question while sitting, but must offer a question.

Photo of Clare DalyClare Daly (Dublin North, United Left)
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It is customary for the Chair to call the next speaker. The Chair was not at all democratic.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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The Deputy got the opportunity to rise. I looked in her direction, but she remained seated. If she wants to use the last minute, she has her chance now.

Photo of Clare DalyClare Daly (Dublin North, United Left)
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The Minister of State seems to be wearing his rose tinted glasses tonight. He mentioned several times that the European Union had a unified approach on Ukraine and, in particular, the sanctions. Is that not a little bit of a glossy version of the truth? Is it not the case that the Czech President, for example, has come out and said that the Union should recognise the Russian takeover of Crimea and that a number of businesses, in Germany in particular, are strongly lobbying that the sanctions be lifted? The cracks are emerging in that regard.

Second, will the Minister of State clarify that the types of reform he says are necessary for Ukraine relate to the privatisation of everything, something the Prime Minister has already purported to be in favour of?

The issue raised about the history of the crisis there is not about muddying the waters, rather it is simply the reality that one cannot solve a problem if one does not know the origins of the problem to begin with. The roots of what happened in the Ukraine go back to the overthrow of the government there and interference from external forces for their own benefit and not that of the Ukrainian people. I ask if the Minister of State could also address the point about Libya in terms of what was discussed and whether any security arrangement might involve Ireland.

6:50 pm

Photo of Dara MurphyDara Murphy (Cork North Central, Fine Gael)
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The conclusions on Ukraine were unanimously adopted. I will briefly address the issue of Libya within the time constraints. Last week the Heads of State and Government decided that as soon as the agreement to form the government of national unity is reached, the European Union stands ready to contribute by making full use of all its instruments. It is important, notwithstanding the recent terrible events in Libya, that the European Union should play a very strong role in supporting the Libyan people. The EU high representative, Federica Mogherini, is working on proposals including possible options under the common security and defence policy. I do not wish to prejudge the outcome of her deliberations but if in due course there is an agreement at EU level on the need for CSDP activities in support of security arrangements in Libya, Ireland will give careful consideration to any request it may receive from the EU with regard to participation in those activities. The triple lock will apply on this or any future intervention by our Defence Forces. The triple lock consists of the UN, the Dáil and the Government.

In the time available to me I will make my concluding remarks. On St. Patrick's Day I attended the General Affairs Council which prepared the European Council meeting which took place two days later and included an extensive discussion on the draft conclusions. On the subject of energy union I emphasised the importance of interconnections with peripheral regions as we discussed earlier. The Taoiseach also discussed this topic. It is very important that this acceptance of our peripheral status is included. The Taoiseach referred to my recent attendance at the Joint Committee on European Union Affairs on the European semester. At the General Affairs Council I emphasised the need to make the process more open and inclusive and to ensure stronger engagement at national level. There is a much longer process for the European semester. Members may recall last year it was only a number of days. I was a member of the finance committee last year and there was quite a high level of dissatisfaction at that fact. Hopefully this year there will be greater engagement. It is not just a matter for the finance committee and we would encourage other sectoral committees to engage in the European semester process. The extension of time has been made available for more national debate and we urge as many committees as feel it is appropriate to engage with the process.

The European Council also discussed the Eastern partnership in view of the upcoming summit in Riga. The Heads of State and Government reaffirmed the European Union's commitment to the Eastern partnership which provides a framework for the EU's relationship with six countries of Eastern Europe, including Ukraine. The leaders committed to strengthening EU relations with each of the six countries Eastern partners on the basis of differentiation and taking into account each country's individual level of ambition for its relations with Europe and also bearing in mind that these are in line with the European Union's interests and values. This was the point to which I referred earlier in the debate about the importance of engagement with countries involved in the Eastern partnership.

The European Council also urged member states to complete their ratification on EU association agreements with the three partners, Georgia, Moldova and the Ukraine. The House approved the terms of these association agreements following a debate last January and the Department of Foreign Affairs and Trade will ensure that formal ratification procedures are completed in advance of the Riga summit. The EU will continue its discussions with the three other Eastern partners, Armenia, Azerbaijan and Belarus, to further the EU's bilateral and multilateral co-operation, as appropriate, under the Eastern partnership umbrella.

Leaders agreed that the summit will be a key opportunity to convey the message that the Eastern partnership is not directed against any third country and that the EU is not seeking to create dividing lines in Europe. The European Council also looked to the future of the Eastern partnership and called for enhanced co-operation in a number of areas including, state building, mobility and people-to-people contacts, market opportunities and interconnections in the transport and energy sectors.

The conclusions adopted by the European Council clearly illustrate the commitment of the European Union to Libya in this time of crisis. The EU is considering how best it can respond to this crisis and I refer to the EU high representative, Federica Mogherini. The most recent round of the UN-brokered political dialogue commenced in Morocco last Friday. Bernardino Leon, the UN special representative, expressed his view that we are now in a decisive moment and this is clearly the case. As he pushes for an inclusive agreement on the establishment of a unity government and related security arrangements, Mr. Leon has Ireland's full support and that of the European partners. The continued fighting and the actions by groups affiliated with ISIS, which we have witnessed in recent days, are very grim warning signs. If unresolved, the crisis in Libya will lead to a catastrophic impact which will not be limited to Libya's frontiers but rather will be felt across north Africa, the Mediterranean, as well as the rest of Europe.

I thank Members for their questions.