Michael McGrath (Cork South Central, Fianna Fail)
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Question 88: To ask the Minister for Finance if he has set a target level to bring Ireland's debt to GDP ratio down to, as an outcome of the negotiations currently underway in respect of Ireland's banking debt; and if he will make a statement on the matter. [36164/12]

Michael Noonan (Limerick City, Fine Gael)
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As I have stated on several occasions since the end-June euro area summit, including in responses to parliamentary questions and during last week's press conference at the end of the latest EU/IMF quarterly review mission, the amount of banking debt which could be considered as part of the discussions around breaking the link between recapitalising the banks and the sovereign will be identified during the detailed discussions. Early negotiations on Ireland's bank debt are underway, with a view to concluding an agreement in October. However, I would not want Ireland to be constrained by setting a target figure and it is important not to prejudice the outcome of these negotiations by commenting on the likely contents of any agreement at this time.

While the discussions around breaking the link between recapitalising the banks and the sovereign are undoubtedly a positive development for Ireland, we cannot lose sight of the fact that there remains a large gap between day to day spending and revenues. This needs to be closed so as to enhance further the long-term sustainability of our public finances.

I can assure the House that we will seek to be ambitious in the negotiations and will seek to agree the best deal possible for the Irish taxpayer. As and when further measures are agreed, I will inform the Houses as appropriate.