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EU-IMF Agreement

Dáil Éireann Debate, Wednesday - 18 April 2012

Wednesday, 18 April 2012

Ceisteanna (5)

Peadar Tóibín

Ceist:

5Deputy Peadar Tóibín asked the Minister for Finance if he will provide an update on the Troika review of the Memorandum of Understanding taking place this week and if he will indicate the aspects of the Memorandum of Understanding that he is hoping to amend. [19547/12]

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Freagraí ó Béal (5 píosaí cainte)

As the Deputy will be aware, the latest review mission by the external partners is currently taking place. It began yesterday, Tuesday, 17 April and will continue until Thursday, 26 April. The review mission comprises of a significant number of meetings designed to evaluate all the elements of the programme covering fiscal developments, the macroeconomic outlook, progress on commitments regarding restructuring the financial sector and structural reform.

After the mission to Ireland is concluded, staff reports will be sent to the ECOFIN Council and the IMF executive board for approval, thus facilitating the next round of disbursements of EU-IMF funding.

Verification of the relevant quarterly targets forms a key part of the mission. The Government has repeatedly stated its commitment to the programme targets. Meeting these conditions on time and on target is the best way to ensure we emerge successfully from this programme, which is our primary focus. That would mean we can return safely to the financial markets for funding in as timely a manner as possible. This is one of the principal objectives of the programme. The Government's commitment to the programme does not stop us from seeking and agreeing changes to aspects of the programme. We have already done this successfully. The Government will continue to do so at the appropriate time.

Following each review mission, and arising from detailed and lengthy discussions with the troika team during it, revised versions of the programme documents, including the Memorandum of Understanding on Specific Economic Policy Conditionality, are prepared by my officials before being submitted to the external partners. It would be premature at this stage to comment on the possible outcome of these discussions.

However, it is also important to note that the relevant programme documents are made publically available at the end of the process.

Many were disappointed to hear over the past couple of days that there was a break with the practice of the troika meeting with Opposition parties. It was a situation where Opposition parties had an opportunity to represent their constituents to the troika, and also to find out if the troika and the Government were on message or was there a deviation between the message that both separate organisations were giving out. I read in their statement yesterday that they indicated the proximity to the treaty referendum was the reason. However, many remain sceptical on that issue. Many believe it was the Government that requested the troika not to meet the Opposition parties.

I would like the Minister to go on record in that regard. The initial response was very vague and much of the information is general. Will the Minister put on record the detail of what issues are currently being negotiated with regard to the memorandum of understanding and in particular his intention with regard to the National Pensions Reserve Fund and its use for potential job creation?

The decision by the troika not to meet Opposition party members on this occasion was a decision made and announced by the troika. They make their own arrangements when they come here on how they will relate to different groups in society, different Departments and so on. That is what they have done on this occasion.

On the programme, the first thing we always do is to have a general weighting to set the scene, and we had that yesterday afternoon. They gave their view of how the programme was proceeding and the Minister, Deputy Howlin, and I gave the Government view of how the programme was proceeding. Following that, there are then a series of meetings with officials, principally from the Departments of Finance and Public Expenditure and Reform but also from other Departments.

The first task is to see whether, at the end of the quarter, the Irish Government has fulfilled all the conditions in the memorandum of understanding. When one fulfils the conditions, which we have done, that is a bit of a box-ticking exercise, and it only becomes an issue if one has not fulfilled the conditions. However, it is a very important box-ticking exercise because unless one ticks the boxes, funds can be withheld. Therefore, one needs to meet all the conditions of the memorandum of understanding for the quarter before one can draw down funds from the various funds in the future. We then look to the future as well and, obviously, we will have full discussions on that later in the week or early next week.

With regard to ceasing discussions with the Opposition, did the troika ask an opinion of the Government and did the Government in any way proffer its opinion to help them make that decision? Has the Government asked in any way so far for use of the National Pensions Reserve Fund for job creation?

They informed the Department of Finance, which informed me and my officials, and, of course, I informed the Government that they were not meeting the Opposition on this occasion. I suggested that a formula that might suit their concerns would be to meet the finance committee of the House, on which all parties would be represented, and to do it in public session because they had a fear of being misrepresented when they meet in private. They decided they would not take up that option. I would have no problem if they were to meet.

The other alternative, given the Deputy obviously wants his views to be known to the troika, is that they are always available to take written submissions. If he wants to write out his views and send them to the Commission representative, who is the chair of the troika group, I am sure they will consider those. It could be as effective as an oral submission.

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