Darragh O'Brien (Fianna Fail)

I thank the Leader for acceding to the request yesterday to resume Committee Stage of the Local Government (Household Charge) Bill 2011 today and to continue considering the legislation tomorrow. There should be adequate time this evening to deal with the remaining amendments. I thank the Leader sincerely for taking on board the views of the House in this regard. He has done so on a couple of occasions this week.

On behalf of Fianna Fáil I wish the Taoiseach and the rest of his delegation well in their negotiations over the next two days. The Government's position in regard to treaty changes is unclear. I get the sense that the Government hopes any agreement reached at the negotiations can be dealt with under the existing treaties so that a referendum can be avoided. However, media reports from the EU indicate that the agreement will be such that the Government will have to put it to the people. Is the Government in favour of what the Taoiseach describes as fiscal consolidation and more stringent oversight? Will that involve fiscal union?

Given that our corporation tax rate is back on the table, I ask the Leader to confirm that the Government's position is to oppose any change to corporation tax. The British Government is looking for a sweetheart deal on financial transactions in the City of London which, if permitted, would have a serious effect on the financial services sector in Ireland. Members will agree that the Irish Financial Services Centre has been a major success for this country. The Taoiseach was circumspect, at best, in his address to the nation and should have spent more time outlining to the people our position on Europe.

This House has debated at length the ECB's interest rate reductions and the Government's efforts to ensure our covered institutions pass them on to their customers. Four weeks ago I suggested that further reductions were on the cards. Are we going to continue dealing with the matter by way of a Mexican stand-off between the Government and the banks, with the regulator standing on the sidelines? I welcome that the ECB will announce a further reduction of 0.25% later today but will the Government make good on its commitment to ensure these cuts are passed on? Bank of Ireland refused to pass on the previous rate cut.

What will happen next week? Will the Taoiseach and the Tánaiste drag the banks into Government Buildings once again to provide nice footage for the television only for the banks to do what they like afterwards? Legislation is required in this area and we are finalising a Bill which will provide certainty for homeowners. Permanent TSB charges a variable rate of 6.1% to many of their mortgage holders even though the ECB base rate will be 1% after today. This cannot be allowed to continue.