Enda Kenny (Mayo, Fine Gael)

I thank Members of the Seanad for their contributions. Let me start by saying that I feel I am in a chamber of the condemned here. The position about the future of the Seanad is very clear; its fate lies in the hands of the people. The Government, comprising two parties, was elected with a specific mandate. Part of that mandate was to put a referendum to the people on the abolition of the Seanad and that will happen. Obviously, once that process starts, the fate of the Seanad is in the hands of the people. I note the comments that have been made by various Senators in respect of changes to work practices and structures, as well as the analysis they would like to carry out in respect of European legislation. Senators are clearly aware of the steps that President Van Rompuy has set out in respect of fiscal, economic and monetary union. In conducting its own business, the Seanad is quite entitled to reflect on these steps and give its views.

I was interested in Senator O'Brien's comments. The problem we found on entering Government was that there was confusion abroad about where Ireland was heading. Business and investment interests like clarity, decisiveness and a horizon against which they can plan. With respect to all involved, the problem was that there were so many indications or statements of having turned corners and that the garden was in full bloom again, which were not actually true, and they knew that internationally. It caused a sense of confusion which is why, for instance, in the United States people said, "What is your corporation tax rate? Is this going to change?" That obviously arose from the interest of some of our European colleagues at the time in saying that Ireland must increase its corporation tax rate. While foreign direct investment is an essential part and a cornerstone of what we have and what we offer, it was very important to make business understand that it was our decision and that the corporation tax rate was not changing. It takes a while, however, to build up that sense of understanding that there will be no change in that rate.

What I meant by the reputation being damaged was because of confusion about where we were headed. It required me to see to it that Ministers attend all their meetings. They must look at the comprehensive package of who they have to meet on the fringes of the European Parliament and so on. As regards what we are looking for in any negotiations like these, one is not going to set out a figure. What we want for the country is the best possible deal that we can get. As I said in the Dáil, there is no bottom line here, but there is a top line which is the best that can be achieved.

The discussions that were going on with the troika in respect of the promissory notes and the restructuring or re-engineering of our debt were very complex and tortuous. The decision made by the Council to break the link between a sovereign and the banks has added a different dimension to this. That has been clarified by the comment of Commissioner Rehn who said he would like to see this concluded by October. We have had the support of Commissioner Michel Barnier and the IMF's managing director, Ms Christine Lagarde. Yesterday's statement by ECB President, Mario Draghi, following a meeting with the Minister for Finance was significant.

I do not want to tell the Seanad that we have achieved this and that the deal has been concluded. It is very far from it because we are dealing with different perspectives from different governments. It is important, however, that the head of the ECB said, in respect of any deal done for Spain and whether it can apply to Ireland in exactly the same way, that it would be reflected in the outcome of the programme for Ireland that will be concluded. While there has been talk about burning senior bondholders and there was talk of it at the eurogroup meeting, there certainly was not agreement on it. That position is still evolving. The Council meeting I attended only referred to two specific countries in the eurozone - Spain and Ireland. The sentence about equality of treatment was fundamentally important. We are seeking the very best deal for our taxpayers.

Senator Leyden was a former Minister of State with responsibility for trade. I knew the late Mr. Haughey had a direct hand in the winning of the Tour de France, but I was not aware that he had also reunited Germany, which is not a bad legacy to leave behind.