Michael Mullins (Fine Gael) | Oireachtas source

I join in the welcome extended by the House to the Minister for State and thank her for a comprehensive update on the Presidency's priorities for the forthcoming six-month term. I very much welcome the fact that the overarching focus of all Government activity will be on jobs and growth because those are the biggest issues and challenges facing our country and Government. I also very much welcome the comprehensive update on the outcome of the European Council meeting held in Brussels last week at which considerable progress was made on the future of economic and monetary union. From an Irish point of view, the meeting was particularly positive as a commitment made in June to break the link between banking and sovereign debt and to provide for the recapitalisation of the banks by ESM was confirmed.

However, there was, as the Minister of State alluded to, some concern in Ireland following remarks made by Chancellor Merkel in a response to a question about Spain that the issue of Ireland's bank debt and recapitalisation by the ESM was not as positive as had been indicated following the June meeting. Certain politicians and a negative media attempted to paint the worst possible scenario and cause much unnecessary concern among our citizens. I compliment the Taoiseach on his swift and decisive action in clearing up the confusion with Chancellor Merkel and the issuing of the joint communiqué which reaffirmed the commitment of 29 June that Ireland's bank debt would be looked at, that Ireland was a special case and that the circumstances surrounding the banking crisis were unique. This will be taken into account by eurozone Finance Ministers as they begin negotiations on how the ESM will work once a banking supervision system is in place. We are fortunate to have the Minister for Finance, Deputy Noonan, negotiating on our behalf. The recognition by the Chancellor of our unique situation and the strong support for our difficulties by French President François Hollande is highly significant and demonstrates the excellent work being done by the Taoiseach, the Tánaiste, the Minister for Finance and the Minister of State for European Affairs in gaining support for Ireland through diplomatic initiatives.

I do not intend to rehearse the reasons we are in this unique situation but our negotiators need strong political support at home as they work to achieve the best possible outcome in respect of our unsustainable banking debt and make our return to the markets more certain. Unlike others, I am not too concerned about the timescale for achieving our objectives. We all know the structures must first be put in place, such as the single supervisory mechanism for banks, but we all want to see an outcome that will give us hope and confidence for the future.

President Van Rompuy at the opening of the European Council meeting spoke about the need to concentrate on banks, employment and growth while giving a gentle reminder of Europe's purpose and fundamental achievement of bringing peace and reconciliation to the continent. Referring to the award of the Nobel Peace Prize, he spoke of the honour for our citizens and institutions and the pride that the way we in Europe live together is recognised by the world at large as societies united in diversity sharing democratic values and human rights. He rightly paid tribute to those who courageously started the work after the Second World War and later worked relentlessly in their own countries to join this common adventure. He said it is our shared responsibility to carry on their work and that we are facing difficulties today but can draw confidence by remembering much more daunting obstacles Europe had to overcome. They had to rebuild a Continent wrecked by violence and dictatorships but they succeeded through courage and statesmanship. The challenge for us all is to maintain Europe as a Continent of peace, progress and prosperity for the future.

It is to be welcomed that the European Council confirmed its determination to stimulate growth and jobs in the context of the Europe 2020 strategy and identified the areas that require greater effort. I welcome the significant progress in implementing the ¤120 billion financing package of the compact and that in the coming weeks, the European Investment Bank to adopt its ¤10 billion capital increase with the aim of strengthening its capital basis as well increasing its overall lending capacity by ¤60 billion. This should lead to additional investment of up ¤180 billion in the next three years. I welcome the fact that ¤55 billion in Structural Funds will be mobilised quickly and effectively and that member states will be helped to reprogramme the structural funds to focus on jobs and growth.

The creation of jobs must be our top priority. It is totally unacceptable and unsustainable that over 450,000 people are unemployed. However, there are positives. Our exports are at record levels, up 12% on last year. Agriculture is performing well and has huge potential for growth as we head to implement Food Harvest 2020. The Government's job plan is beginning to work. We have seen very significant investments by major multinational companies as well as by indigenous companies such as the Kerry Group and Paddy Power. The Minister for Jobs, Enterprise and Innovation has ensured that all Departments have a job remit and is successfully addressing the roadblocks to job creation. Our overseas trade missions are particularly successful and our message that Ireland is open for business is being well received worldwide.

The availability of finance for small business remains a major problem. While some initiatives have been announced by the Minister for Jobs, Enterprise and Innovation, such as the microfinance agency, the fact remains that banks are not lending to viable businesses at the level required, despite all the money that has been pumped into the banks. I recently outlined in the House some of the difficulties experienced by businesspeople, which I will not discuss today, but I welcome the recent comments by the Taoiseach that the Government is taking this matter seriously and is determined to ensure that our banks start lending more aggressively to the productive and viable sector. We must continue to work on improving competitiveness and reducing red tape and regulation and review our local authority costs.

As a country we face huge challenges. We have a difficult budgetary situation and are in a bailout programme we want to exit as quickly as possible. Our legacy debt is unsustainable and we must get recognition for saving the banking system of Europe. Unemployment, particularly youth unemployment, is a major challenge. As we assume the Presidency on 1 January, we will have an opportunity to further enhance our growing reputation among member states and worldwide. The Minister of State has an enormous workload ahead of her and has put in a lot of work in recent months in preparation for the Presidency. We wish her well in her endeavours. This is a critical time for Ireland and Europe and we are confident that the arrangements are in safe hands. I thank the Minister for State for her progress to date.