In March and July the leaders of eurozone countries held two special summits to agree urgent measures to tackle the financial and economic crisis. After both meetings, announcements were made that a line was being drawn under the crisis. Every day it becomes more obvious that the crisis is getting worse. Half measures impress no one and the lack of cooperation between European leaders is undermining confidence. Having taken the decision not to meet or contact any eurozone leader before the July summit, the Taoiseach's policy in the last two months has been to stay equally silent. As far as can be checked from public records, this seems to be the longest any Taoiseach has gone without holding a major bilateral meeting on urgent European Union business. The Government has not taken a position on the Franco-German proposals for a new European treaty and has accepted the European Central Bank's attitude to non-sovereign bondholders without even meeting the ECB president. Proposals are appearing in the media but nothing concrete is emerging. Given the urgency of what is happening with Greece, as well as Spain and Italy, will the Taoiseach state exactly what Ireland's position is on these fundamental matters? Does the Taoiseach agree that an early summit is now needed?
Leaders’ Questions
The Deputy is right that there were summits in March and July and decisions were made at those summits and those decisions will be implemented by those who attended. For its part, Ireland is working to fulfil those conditions. The Bill giving legal effect to the changes made in July is going through the House and there is a Finance Ministers' meeting scheduled for Monday. The timetable for that may change and may be expanded.
While Deputy Martin continuously comments on lack of contact between European leaders, the result achieved since July in both the EFSM and EFSF speaks for itself in that the range of interest rate reductions brought about have secured substantial savings for the Irish taxpayer.
The agenda being pursued by Ireland, which has been articulated by the Minister for Finance at a number of meetings, is being considered by the European partners. It is to put other propositions in place to reduce the overall cost of debt here. The Minister has pointed out that the promissory note that was signed off on by the previous Government in respect of Anglo Irish Bank and Irish Nationwide Building Society contained a sleight of hand that is very costly to the Irish taxpayer. No interest was to be charged until 2013 when the interest rate will be penal, at over 8%. The Minister has pointed out to the IMF and EU that dealing with a range of propositions in that area would be beneficial for the country.
I agree that it is necessary that European leaders discuss these issues in a comprehensive fashion. The first thing they must do is implement what was agreed in July. A big decision is to be made in Germany on Thursday, we are dealing with it here, the Greek Prime Minister is spelling out what his Government wants to do and the Italian Prime Minister has implemented an austerity programme. The countries who signed on for decisions have a duty in their respective Parliaments to implement those decisions. A meeting is fixed for EU Heads of Government. I am not sure of the date of that meeting but it is fairly soon.
The Taoiseach's only consistent policy with regard to Europe in the last six months has been to claim credit for goals while standing on the sideline.
What has Deputy Martin been claiming credit for?
The interest rate reduction that was eventually proffered by Europe was four times what the Government asked for——
That is not true.
——and was clearly the result of the broader European crisis brought on by the situation in Greece itself. After six months of not having had a single bilateral meeting with a eurozone leader, the Taoiseach should put aside his election speeches about the major diplomatic initiatives he was about to undertake.
Deputy Martin should have a bilateral with Deputy Ó Cuív.
Debt sustainability is at the core of solving the crisis. Reductions in the interest rates, which were agreed at the start of the year, are finally being fully implemented. They are welcome but there remains the issue of outstanding debt. If discussions are taking place about writing down sovereign Greek debt, there should be no problem with doing the same for non-sovereign and unsecured bank debts. That goes to the core of the issues.
The European Central Bank stopped us doing this last year because of supposed contagion risks.
The Deputy made that speech in 2003.
This is no longer a credible argument. The Taoiseach has broken his election promise about "Not another red cent". Will he now agree to intervene personally and discuss that core issue with the President of the European Central Bank? The Taoiseach supported the president's appointment without question. It is time he had a substantive engagement with him on the core issue of our debt, given that discussions are going on at present about Greek sovereign debt.
Other discussions are going on. Did I not see Deputy Martin himself out on the plinth claiming credit for something a couple of months back?
The Taoiseach should not be facetious.
That would have been Deputy Ó Cuív.
Whatever condition we are in, we are in a better position to make comments about what is happening out there.
Last January in the Financial Times, the Minister for Finance, then Fine Gael spokesman on finance, spelled out our position and said that getting back down to the balance of payment fund rate would be what we would look for. When that happened——
The Minister for Transport summed it up when he said, "Not another red cent". The rallying cry before the election was "Not another red cent to the banks".
If Deputy Martin does not want to listen to the truth, I will tell him again. Last January, the Minister for Finance said — Deputy Martin can check the record if he wishes——
I have checked all the records.
The Deputy should check the Financial Times of January this year.
The election manifesto was very clear.
It was in the five point plan.
The Minister spelled out the importance of getting back down to the balance of payment fund rate, which is applicable in Romania. It was from that proposition that the eventual decision arose.
What did he get? The Taoiseach is obfuscating.
Far from not looking for credit, we want to achieve results. They are being achieved and the reputation of this country — from an international commentary, a political and a business perspective — has risen substantially in the past six months.
Hear, hear.
That is not to say we do not have a long way to go, because we do. We will continue to focus on that. This kind of line will not get Deputy Martin anywhere.
We are in contact with the German Chancellor——
The Taoiseach is in contact with no one, and has not been.
The last time the Taoiseach met the Chancellor she gave out to the Taoiseach.
——and with the French Presidency about an appropriate time to discuss some issues concerning Ireland and Europe. I will go to Warsaw on Thursday and return on Friday. I have arranged three bilateral meetings with the Dutch and Finnish Prime Ministers and with a third.
That will solve the problem.
I will let Deputy Martin have the details of what we discuss when I come back.
The Government placed a cap of €500,000 on bankers' pay. Some of us argued for a lower rate, given the awful distress of people. Tá a fhios ag an Taoiseach go bhfuil na gnáth daoine ag cur suas le méadú costais ar bhia agus ar thaisteal cé go bhfuil an Rialtas ag leanúint leis ag cur billiún euro isteach ins na bainc.
When I asked the Taoiseach this question in May, he did not rule out the possibility of AIB breaking this cap of €500,000, which is an obscene amount of money to pay anyone. In response, he said he had never seen people so frustrated at the carry-on of bankers but he did not rule the possibility out. Last weekend, the Minister for Finance confirmed that AIB has, indeed, asked for permission to negotiate a salary of more than €500,000. Will the Taoiseach tell AIB, and the Dáil, that the Government will, under no circumstances, allow this?
I answered this on a previous occasion. The cap is in place at €500,000. I said it would want to be a truly exceptional case to warrant breaching that. I have not seen evidence of any exceptional case.
Does that mean the Government will not allow it? The Taoiseach needs to speak in plain language. He quoted the Minister for Finance. The Fine Gael finance spokesperson, perhaps before one of the party's attempted coups——
Deputy Adams is good at coups himself. People who live in glass houses should not throw stones.
——said that the figure of €500,000 was too high, given that people were in such difficulties. The Minister for Public Expenditure and Reform said that many members of the public will still regard these levels of payment as excessive, particularly having regard to the role played by many senior bankers in creating our current economic crisis. AIB has a cheek to ask for authority to negotiate a salary above €500,000.
Hear, hear.
Can the Taoiseach give a straight answer to this question and say he will not countenance this outrageous amount of money being paid at this time of dire distress?
As Deputy Adams knows, I extend courtesy to everybody. A letter about this matter has been received by the Minister for Finance. A Government cap is in place. This bank is, effectively, State owned. It is a much smaller bank than it was and €500,000 is an extraordinary amount of money.
That is only the salary.
I would like to hear from the Minister for Finance the case being made by the bank in question.
How long does it take to do that? Just say "No".
Just say "No" and that would be the end of it.
The cap was put in place for good reason.
Deputy Michael McGrath should listen.
No good reason has been put to me as to why that should change.
Hear, hear.
The Taoiseach should say "No" then, end of story.
I call Deputy Finian McGrath.
The previous Government put in place a cap and then paid €700,000 while pretending to pay €500,000.
I ask Deputies to cut out the chat. I have called Deputy Finian McGrath.
The previous Government put in place a cap of €500,000 and paid €690,000.
What about the IMF? The Opposition need a few lessons on modern Irish history.
Deputy Buttimer has some time to wait before getting a place on the front row.
Perhaps Deputy Dooley would give us a break. I have called Deputy Finian McGrath.
He will get there ahead of Deputy Dooley.
Deputy Buttimer wants a slot on Leaders' Questions.
Deputy Mathews will get down ahead of Deputy Buttimer.
I will get my chance.
Deputy Buttimer, please resume our seat.
I would like to raise with the Taoiseach today the issue of protection of our senior citizens before the harsh winter sets in. I ask that he reverse the fuel cuts for vulnerable older people. The Taoiseach knows that these people have served the State well for many years, in particular in the 1980s when they took a major hit in terms of taxes. We heard earlier on in this House that €500,000 is to be paid to senior bankers at a time when we are taking €3 or €4 in terms of fuel allowances from our senior citizens.
Does the Taoiseach agree with Age Action Ireland that it is unacceptable to target these people and that to do so is highly dangerous? Does he share my concerns that many older people could over the next few months die from cold-related illnesses such as pneumonia? Why did the Taoiseach and Government cut the free electricity and gas units allowance under the household benefits package by 25% and 20% respectively? Is the Taoiseach aware of the huge gas and electricity price increases in recent weeks and that many of our senior citizens are scared? Does he know that recently electricity prices increased by 12% and gas increased by 20%?
I ask that the Taoiseach reverse these cuts as a matter of priority.
I recall Deputy McGrath was a strong supporter of the previous Government for a number of years.
That is correct.
The Minister for Social Protection has had to implement unspecified cuts decided upon by the previous Government. I share the Deputy's concern for all our elderly people. While I am not sure of the weather forecast for next December-January, obviously if this winter is as cold as it was last winter people will suffer. The position is that the Minister for Social Protection found, upon taking up that portfolio, a whole series of decisions made but nothing to back them up. Obviously, the comprehensive spending review and analysis of it will have to ensure some measure of priority for the protection of our elderly citizens. The Minister for Social Protection will, in so far as is possible, see that that happens.
The Government will have to avoid rate cuts.
Cuts introduced by Fianna Fáil.
I referred earlier to the people earning €500,000 per annum at a time when we are taking €2 or €3 from senior citizens. Has the Taoiseach been visited at his clinic and office by senior citizens expressing concern about these cuts? I have.
Is the Taoiseach aware that cuts to the telephone, electricity, gas and smokeless fuel allowances will cost the average pensioner €265.20 per annum? That is a lot of money to many senior citizens. I ask that the Taoiseach seek in preparation of the budget to maintain social welfare payments to older people at current levels. This could be a matter of life and death for many older people. Approximately 2,000 senior citizens are directly affected by these cuts. This figure was provided by the voluntary sector who deal with senior citizens on the front line. I ask that the Government continue to assist these 2,000 senior citizens who will be at risk.
Will the Taoiseach stand up for older people and reverse these cuts now?
No, I cannot reverse these cuts now. Not alone have I been visited by a number of people, I have visited people whose situations are quite serious. In regard to the drafting of the budget, the Deputy is aware of the overall figures and will have an opportunity during the course of the debate on the budget to put his points. The Ministers for Finance, Public Expenditure and Reform, Social Protection, Health and others will, in consideration of the Estimates, take into account the difficulties and plight of many of our elderly citizens, as it is being brought to their attention on a regular basis.
The situation is that decisions of the previous Government in respect of unspecified cuts have had to be dealt with. Preparation of budget 2012 will take into account in the best way possible and within the constraints available to us, the protection and respect of our elderly citizens, in particular those living alone or in difficult circumstances which arise for a variety reasons.