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Official Engagements

Dáil Éireann Debate, Tuesday - 1 May 2012

Tuesday, 1 May 2012

Ceisteanna (24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57)

Micheál Martin

Ceist:

5Deputy Micheál Martin asked the Taoiseach the way he has been putting forward growth measures rather than austerity measures to other European leaders; and if he will make a statement on the matter. [10581/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

6Deputy Micheál Martin asked the Taoiseach if he has spoken to Chancellor Merkel recently on the EU Treaty; and if he will make a statement on the matter. [10583/12]

Amharc ar fhreagra

Gerry Adams

Ceist:

7Deputy Gerry Adams asked the Taoiseach the issues he will prioritise at the European Council on 1 and 2 March. [10928/12]

Amharc ar fhreagra

Gerry Adams

Ceist:

8Deputy Gerry Adams asked the Taoiseach if he raised the issue of the Anglo promissory note at the European Council on 1 and 2 March. [10929/12]

Amharc ar fhreagra

Gerry Adams

Ceist:

9Deputy Gerry Adams asked the Taoiseach if he will report on his meeting with Chancellor Merkel of Germany on the 23 February 2012. [11165/12]

Amharc ar fhreagra

Gerry Adams

Ceist:

10Deputy Gerry Adams asked the Taoiseach if he raised the Anglo promissory note at his meeting with Chancellor Merkel of Germany on the 23 February 2012. [11166/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

11Deputy Richard Boyd Barrett asked the Taoiseach if he will report on his recent meeting with Chancellor Merkel; and if he will make a statement on the matter. [11233/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

12Deputy Richard Boyd Barrett asked the Taoiseach if he raised with Chancellor Merkel the issue of declining growth in the European economy and the down grading of future growth forecasts; and if he will make a statement on the matter. [11234/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

13Deputy Richard Boyd Barrett asked the Taoiseach if he raised with Chancellor Merkel the issue of the effect of ECB interest rate policy and the lending of German, French and other banks in fuelling the property and financial bubble and consequent crash here; and in that context if he requested a write-down of the Irish debt burden; and if he will make a statement on the matter. [11236/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

14Deputy Richard Boyd Barrett asked the Taoiseach if he raised the issue of the Anglo-Irish Bank, IBRC, promissory notes with Chancellor Merkel; her response to same; and if he will make a statement on the matter. [11237/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

15Deputy Richard Boyd Barrett asked the Taoiseach if he discussed with Chancellor Merkel the Eurocompac intergovernmental treaty and the referendum in Ireland; and if he will make a statement on the matter. [11238/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

16Deputy Micheál Martin asked the Taoiseach the issues he discussed at the meeting he had recently in Berlin with Chancellor Merkel; if the promissory note was included in the discussion; and if he will make a statement on the matter. [11243/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

17Deputy Micheál Martin asked the Taoiseach the business that was discussed at his recent meeting with Prime Minister Monti in Italy; if the role of the ECB was discussed; and if he will make a statement on the matter. [12271/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

18Deputy Micheál Martin asked the Taoiseach if the need for a referendum on the European treaty was discussed with Chancellor Angela Merkel at his recent meeting with her in Germany; and if he will make a statement on the matter. [12452/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

19Deputy Micheál Martin asked the Taoiseach if he held any bilateral meetings at the most recent EU Council meeting; if he will outline the issues that were discussed; and if he will make a statement on the matter. [13490/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

20Deputy Micheál Martin asked the Taoiseach if there were any discussions at the EU Council meeting regarding inflation risk; and if he will make a statement on the matter. [13493/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

21Deputy Richard Boyd Barrett asked the Taoiseach if he discussed declining economic growth and the recent down-gradings of growth forecasts for Europe with EU leaders at the European Council meeting on 1 and 2 March; if so, their responses to same; and if he will make a statement on the matter. [13951/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

22Deputy Richard Boyd Barrett asked the Taoiseach if he raised the issue of the Anglo-Irish promissory notes at the European Council meeting on 1 and 2 March; if he will report on those discussions; and if he will make a statement on the matter. [13952/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

23Deputy Richard Boyd Barrett asked the Taoiseach if the issue of the growing crisis in Europe was discussed at the EU council meeting on 1 and 2 March; if so, the measures that are planned to address same; and if he will make a statement on the matter. [13954/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

24Deputy Richard Boyd Barrett asked the Taoiseach if the efforts of the military Government in Egypt to repress the democracy movement and independent trade unions in that country were discussed at the European Council meeting on 1 and 2 March; and if he will make a statement on the matter. [13955/12]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

25Deputy Richard Boyd Barrett asked the Taoiseach if he plans to meet with the Spanish Prime Minister in the near future; and if he will make a statement on the matter. [15096/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

26Deputy Micheál Martin asked the Taoiseach if he held any bilaterals when he attended the recent EU Council meeting; the issues that were discussed; and if he will make a statement on the matter. [15190/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

27Deputy Micheál Martin asked the Taoiseach if he made any statement at the recent EU Council meeting in relation to the situation in Syria; and if he will make a statement on the matter. [15191/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

28Deputy Micheál Martin asked the Taoiseach if he will detail any documents relating to bank related debt which he has circulated to other heads of State or Government who attend the European Council. [16233/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

29Deputy Micheál Martin asked the Taoiseach if he will detail his direct personal discussions with the President of the ECB other than in the context of meetings of the Eurogroup or European Council. [16234/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

30Deputy Micheál Martin asked the Taoiseach if he has held any bilateral meeting with the new Spanish Prime Minister; if one is planned; and if he will make a statement on the matter. [16240/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

31Deputy Micheál Martin asked the Taoiseach if he has held a bilateral meeting with the Portuguese Prime Minister; if one is planned; and if he will make a statement on the matter. [16241/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

32Deputy Micheál Martin asked the Taoiseach if he has received an agenda for the next EU Council meeting; and if he will make a statement on the matter. [19799/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

33Deputy Micheál Martin asked the Taoiseach if he has recently met or spoken to his counterpart in Spain; and if he will make a statement on the matter. [20008/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

34Deputy Micheál Martin asked the Taoiseach his plans for official trips abroad during the remainder of 2012; and if he will make a statement on the matter. [19787/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

35Deputy Micheál Martin asked the Taoiseach the specific proposals that he has requested to be considered by the EU to instill growth across the EU; and if he will make a statement on the matter. [21308/12]

Amharc ar fhreagra

Micheál Martin

Ceist:

36Deputy Micheál Martin asked the Taoiseach if he has had discussions recently with Chancellor Merkel; and if he will make a statement on the matter. [21309/12]

Amharc ar fhreagra

Gerry Adams

Ceist:

37Deputy Gerry Adams asked the Taoiseach if he has held discussions in advance of the next European Council meeting in relation to the need for a focus on investment in jobs and growth here and across the EU. [21607/12]

Amharc ar fhreagra

Gerry Adams

Ceist:

38Deputy Gerry Adams asked the Taoiseach the issues he will prioritise at the next meeting of the European Council. [21608/12]

Amharc ar fhreagra

Freagraí ó Béal (27 píosaí cainte)

I propose to take Questions Nos. 5 to 38, inclusive, together.

I travelled to Berlin on Thursday, 23 February, for an informal working dinner with Chancellor Merkel. Prime Minister Valdis Dombrovskis of Latvia and Prime Minister Petr Necas of the Czech Republic also attended the dinner. Discussions focused on the future of Europe; how we could move beyond the current crisis; and how we could ensure that we can avoid crises in the future. Our informal meeting was extremely engaging and conducted in a most positive and constructive atmosphere. There was a shared determination to focus on the steps needed to encourage growth and job creation in the Union.

I took the opportunity to brief my German, Latvian and Czech colleagues on developments in Ireland, and the preparations for Ireland's Presidency of the Council which will commence in eight months time. I outlined to my colleagues that the Irish recovery is proceeding well, but that we need the continuing support of partners. With regard to wider eurozone issues, we agreed that the deal reached by Finance Ministers on Greece on 20 February was an important one but I stressed that we still need firewalls and a strong focus on growth if we are to overcome the crisis.

In relation to our forthcoming Presidency during the first half of 2013, I indicated that we would be pressing ahead with jobs and growth at the heart of the agenda. The next round of the European Semester will take place during our term, and we will work to ensure that every effort to foster growth is central to the European Semester process. We did not discuss arrangements for ratification of the stability treaty during this informal meeting.

Following my meeting in Berlin, I travelled to Rome on Friday, 24 February for a meeting with Prime Minister Monti. Our discussions focused on eurozone issues, preparations for the spring European Council, the jobs and growth agenda and the Single Market. Both Italy and Ireland are working hard to get their economies back on to a sustainable footing and the Prime Minister and I agreed that while discipline is essential, recovery will not come without growth. We also agreed that while we are making great efforts to recover, robust firewalls were also necessary.

I attended the spring meeting of the European Council in Brussels on 1-2 March. As I have already made a statement to the House concerning this meeting, I will merely set out a summary of its proceedings.

Discussions at the spring European Council focused on economic policy. That meeting marked the end of the first phase of the European semester. The European Council discussed budgetary and economic strategies to stimulate growth and increase competitiveness across Europe. In this regard, we endorsed the five priorities for 2012 set out in the European Commission's annual growth survey, including actions to be taken at national level and action required at EU level. I cosigned a further letter on the growth agenda ahead of the meeting, this time supported by 12 member states. We called for progress in eight specific areas, and are broadly satisfied with how these issues are reflected in the Conclusions. They will remain a key focus over the period ahead.

As the House will be aware, there is now a shared view around the European Council table that to enhance prospects for economic recovery in Europe, we also need to generate real momentum aimed towards the creation of jobs and growth. These are the issues that matter most to the people of Europe. The Commission's growth forecast served as a reminder of this. With decisive and coordinated action, we can work together to underpin stability and boost growth and jobs.

The European Council also set the EU's priorities for the forthcoming G8 and G20 Summits, as well as for the Rio +20 Summit in June. In the field of foreign policy, the meeting took stock of the evolving situation in Syria as well as developments concerning the Arab spring and set guidance for further EU support to that process. Ireland fully supports this process. In addition, the 27 Heads of State and Government endorsed the granting of the status of candidate country to Serbia.

Finally, the European Council elected Herman Van Rompuy President of the European Council for a second mandate of two and a half years. Eurozone leaders also designated him as the first President of the Euro Summit.

In the margins of the European Council on 2 March, I signed, on behalf of Ireland, the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union. The treaty is, of course, subject to ratification by the Irish people in the referendum to take place on 31 May. While I had no formal bilateral meetings at the European Council, I did of course see a number of my colleagues during the course of the meeting. The issues of inflation risk and the situation in Egypt did not arise at this meeting of the European Council.

The announcement at the end of March on promissory notes and bank debt is another good step in our ongoing efforts to improve our programme. The use of an Irish Government bond for the promissory note payment allows the wider discussions on the Irish debt associated with the recapitalisation of the banks to continue and hopefully come to a successful outcome that is in our interests.

On my travel plans for the remainder of 2012, I will attend the scheduled meetings of the European Council on 28 -29 June, 18-19 October and 13-14 December. I will also attend the British Irish Council on 22 June. I will of course keep my plans for travel and visits under careful review, particularly as our Presidency approaches.

I have had no formal bilateral meetings with Prime Minister Rajoy of Spain or Prime Minister Coelho of Portugal, however, I will see both leaders at the next scheduled meeting of the European Council next month.

Relations with the European Central Bank are the responsibility of the Minister for Finance in the first instance, however, and I have had no contact with the President of the European Central Bank other than in the context of meetings of the European Council.

I have not yet received an agenda for the June European Council. The annotated draft agenda is expected to be received during the third week of May.

I thank the Taoiseach for his reply, which dealt with Questions Nos. 5 to 38, inclusive, 34 in total. I do not believe this is a satisfactory way to proceed. If the old system whereby questions to the Taoiseach were taken twice a week, as was the case at the beginning of the lifetime of this Dáil, were still in operation, we would have had a better chance of dealing with some of the 34 questions to which I refer. A number of these relate to meetings which took place as long ago as 1 and 2 March. The Taoiseach took on the Herculean task of dealing with that number of questions in one go. It is a formidable task by any standards.

When this number of questions are taken together, many issues are going to be passed over. In that context, I refer the Taoiseach to Question No. 28, with which he did not deal in his reply and which asked if he would detail any documents relating to bank related debt which he circulated to other Heads of State or Government who attended the European Council. In the context of his response to Question No. 29 and in view of the significant issues around the promissory note, including the commitments made in respect of it and the severity and gravity of the situation in which this country finds itself, I find it incredible that the Taoiseach has not met the President of the European Central Bank. What occurred at the end of March was not a serious development but was, rather, a camouflaged kicking of the can down the road, and it was widely reported as such.

On the broader issues to which these questions relate, I stated previously that I would have preferred the referendum to be held in late June. I have always been of the view that holding it at the end of this month would heighten the risks to its being passed, especially in light of the occurrence of a range of events across Europe. In France, for example, Francois Hollande is demanding that extra measures be agreed by European Union leaders before he will agree, if elected, to ratify the stability treaty. I accept that there is at long last a growing convergence of opinion in respect of the need for strong growth in parallel with moves to balance budgets. There is also agreement on the need for a stimulus programme at pan-European level. The Tánaiste has indicated that the existing growth agenda would address Francois Hollande's concerns. I do not accept that because I am of the view more is required. I would accept the treaty does not prevent other actions being taken. The more honest approach would be to show the people the larger agenda that exists in respect of this matter, namely, that the fiscal treaty is a stepping stone towards further moves which will ensure Europe and Ireland will emerge from the current crisis. The basic point is that while the treaty is needed, it is not enough in itself. We should be upfront and honest in respect of that matter.

I have consistently stated during the past year that further treaty changes will be required, particularly in the context of the mandate of the European Central Bank and the role it has played in the current crisis. Will the Taoiseach comment on that matter? Does he accept there will be a requirement for further treaty changes in the future to ensure the mandate of the European Central Bank will be broadened and a genuine fiscal union, which will allow real transfers across borders in the event that certain countries get into difficulties, will be created? If we show the people there is a broader agenda at play and this can assist us in emerging from the crisis, they will support both the treaty and broader growth policies within Europe.

On bank debt, it appears what is being sought is for the ESM to fund our debt. This will not address the debt sustainability issue which has surfaced. Are we no longer seeking an explicit write-down in respect of the promissory note debt?

I met the President of the European Central Bank, Mr. Draghi, upon his appointment and after Mr. Trichet had vacated the position. I did not have a formal meeting with him. The Minister for Finance travelled to Frankfurt to meet Mr. Draghi and has met him on a number of occasions since his appointment. A briefing document in respect of the promissory note was circulated by the European Union section of my Department to our counterparts throughout Europe.

As I informed Deputy Ross in respect of an earlier question, the treaty is about sustainable growth, employment, competitiveness and social cohesion. It is not for me to interfere in the electoral processes of France or any other country. We made a clear decision, in adequate time, to hold the referendum on 31 May next. Irrespective of when one holds a referendum, there will always be events which can discussed in the context of whether they will assist the process. This is a matter for the Irish people to make a decision on and we are well able to make up our own minds in respect of the question being asked. That question is whether people will give their authorisation for the ratification of the treaty, which relates to growth, employment, competitiveness and social cohesion. I hope the people will answer "Yes", especially on the basis of the evidence before them in respect of continued strong investment. Such investment leads to job opportunities and helps to create growth, which in turn reduces our debt and makes it easier for us to reach the point at which we can once again fly on our own economically. The less money we are obliged to spend on debt and interest payments, the more will be available to spend in areas such as health, education and so on where a clear need exists.

As Deputy Martin is aware, there has been some movement in respect of the European situation. The meetings of the European Council I attended from March of last year up to recently were all consumed by talk of catastrophe, default, the break-up of the eurozone, the demise of the euro, the removal or potential removal of countries from the eurozone, etc. The position has now changed. Greece was the subject of headlines on the front pages of world newspapers for two and a half years but we have moved to the point where there is a recognition that if one wants to put one's house in order, one will be obliged to engage in some good housekeeping. On its own, the agenda in this regard does not deal with the challenge of creating growth and opportunity.

There has been a recognition of the role of the European Central Bank. Deputy Martin is well aware of the exceptional liquidity released by Mr. Draghi and the bank into the system to relieve the pressure on it. There has also been a recognition of the urgency of this matter by means of the bringing forward of the establishment of the ESM by 12 months. There is also the issue of the adequacy and the scale of the firewalls being made available. We must remember the co-operation offered by the IMF when Europe was prepared to put its money where its mouth is. Clearly the firewall available will be of a scale which will allow it to prevent contagion. This type of action speaks for itself.

The question of the promissory notes is one with which the Minister for Finance and his counterparts are actively involved. That will continue to be the case. Issues such as the future role of the European Central Bank, the question of eurobonds, etc. have not yet become the subject of specific proposals. The Deputy is aware that what Ireland would like in this regard is an opportunity to have a longer spell at a lower interest rate because this would assist us with our deficit and debt repayments. The Minister for Finance will continue to negotiate on behalf of the country in respect of these matters. When they are finally dealt with at European Council level, we will make decisions that are in the best interests of the country. While there has been some movement and a degree of recognition of the need for change, I am of the view that developments will accelerate once the stability treaty is ratified by 12 countries and proceeds to be implemented.

The agenda being discussed by Mr. Hollande, if he is to be elected by the French people, is one of additional growth. I welcome the statements from European leaders in respect of a focus on an agenda which promotes investment, growth, jobs and opportunities. We fully support that principle which we, as a country, have been advocating for some months. What the French people decide to do is their business.

I want the Deputy to understand that while the treaty has been signed, it does not prevent additional measures being inserted that will not alter the treaty but will add a particular focus to it such as jobs and investment. That could be in the same way the European Parliament voted through a range of protocols given to Ireland arising from the Lisbon treaty with particular reference to corporation tax rates and so on. I would not give a carte blanche, as they say in France, to growth and investment because we have objections to financial transaction taxes and any changes in corporation tax rates that might be of interest to other countries. We would see this as a growth issue.

I am not clear about this. Are we seeking an explicit write-down of the promissory note debt? Will the Taoiseach clarify our position on this? Regarding the growth agenda, I accept there is more talk around growth and development. I accept in election campaigns people will make comments. If the French socialist leader gets elected, the one aspect of the treaty he will not change is the link to the ESM, European Stability Mechanism. A fundamental raison d’être for supporting the treaty is the guaranteed secure access to this funding. No matter who gets elected, that will not change anytime soon. We need to be upfront and clear with people on that. What may change is a focus on a more concrete growth agenda, which I would support.

Where is the beef in all of this? To put flesh on the bone, an early manifestation of this change could be at the negotiations of the European budget, for example. The Commission is proposing an increase of 7%. This would be a test for Germany and other states as to the degree to which they want to create additional spend across the European Union economy. That is a move we should support at a broader European level. The talks on the reform of the Common Agricultural Policy over time will be another important signal in terms of support of measures that can help member states' domestic economies, especially our own. Whereas Greece may have receded temporarily from the headlines, unfortunately others have come in to fill the space. There is considerable speculation and concern, as we know, about Spain. That is why some of the questions tabled today asked if the Taoiseach met the Spanish Prime Minister recently. That is another reason we should opt for security and vote for the treaty because we are not out of the eurozone crisis yet.

Thank you, Deputy.

We should not pretend we are out of the eurozone crisis. Will the Taoiseach comment on that dimension? We are still in a relatively volatile and uncertain scenario. We need to identify clearly the concrete steps we can take to put the country on a more secure pathway rather than the alternative uncertain scenario in the event of the treaty not being passed.

With regard to the Greek private sector initiative, PSI, it was made perfectly clear by the European Council that this applied to Greece only. It is not a case of looking for write-downs here but one of looking for a re-engineering of the promissory note system to bring about a longer repayment period and lower interest rates which will make it easier for Ireland to deal with its deficit and pay its debts.

The Deputy is correct that the eurozone is not out of the woods. It is in a fragile position and great concern has been expressed about Spain, given the size of the country's economy and its unemployment rates. Earlier this was reflected in the great anxiety about Italy when the new Prime Minister, Mr. Monti, was appointed. Obviously, decisions were taken by his Government on how to deal with the structural challenges there. Likewise, the Spanish Prime Minister, on taking up office, examined the situation, and some revisions in respect of Spain's targets were put in place.

It is true to say the eurozone is not by any means out of this particular challenge. Deputy Martin is correct that the road to travel here is the one of certainty and guarantee of access to a permanent funding mechanism, were that ever to be required. When the treaty is ratified and moves on, the question of the future role of the European Central Bank, eurobonds and these other issues will become the focus of attention and proposal. If we cannot understand that, like every household in the country, we must live within our means, then there is a problem. That is the problem many countries have now which is why we have this enormous frustration at European Council meetings about decisions being taken that people, in some cases, knew in their hearts were never going to be followed through.

The question of organising this in a way that countries can have a clear target to get their houses in order while, parallel to that, having a specific growth agenda where investment and opportunity can take place is something I strongly support. Article 1 of the treaty, dealing with sustainable growth, employment, competitiveness and social cohesion, can be fleshed out. This agenda was taken up anyway with the small and medium-sized enterprises part of the recent European Council summit. The question of a youth unemployment rate above the 29% European average, which also includes Ireland, was addressed. There are 23 million small and medium-sized enterprises in the Union. At the same time, there are 23 million people unemployed. In theory, if each enterprise could take on one person, then the problem would be dealt with. However, that is not reality.

It has taken some time to force the growth agenda onto the overall agenda. It can be developed as a larger platform which, as Deputy Martin said, provides certainty, a guarantee for the future and an opportunity for every country to develop their economies for the benefit of their people, workers, jobs and opportunities.

As a spectator to this little chitchat between the leader of Fianna Fáil and the Taoiseach, it is bizarre and surreal to listen to them talking as if in some way this Government and the previous one was all about job creation and growth, got it on the agenda and forced the European partners to come on to this ground.

Deputy Adams might be joining with Fianna Fáil soon.

On the issue of the promissory note, the Minister for Finance raised all sorts of expectations but then came up with something that does not reduce our debt, deficit or the State's liability to Anglo Irish Bank. In fact, we now have to find an additional €90 million in taxes and cuts this year because of the increase in the debt. That is a bit of wizardry, revisionism and spin.

Deputy Adams's party is not afraid to use spin itself.

The Taoiseach knows this is not a treaty about sustainable growth or social inclusion. The Taoiseach should step out of Leinster House and look at what is happening around us. There are 500,000 people unemployed, thousands forced to emigrate and social guarantees reduced every day. This morning the Minister for Finance - the Minister of hardship - was at it again frightening people with no positive argument being put forward in favour of this treaty. It is all scary stuff trying to frighten people.

We will have a lot more austerity if we vote "No".

Sinn Féin is always frightened of the truth.

The clear message is that austerity is not working. In 2008, the Exchequer deficit was €12.78 billion; in 2011, €24.9 billion. After five austerity budgets and €24 billion in cuts, along with a whole host of new charges such as the household tax, the septic tank tax, property tax, water charges, massive cuts to education and other social guarantees, particularity the outrageous cut of some 500,000 hours of home help for people in the community, it is clear austerity is not working.

In the past 12 months the Labour Party and Fine Gael have given €21 billion to the banks. Where is the job stimulus project and the Government's proposal and funding for getting people off the dole and regenerating the economy? Sinn Féin is very clear about this. We believe the deficit must be reduced and put forward propositions to do this which were socially equitable compared to what is happening now. Waste must be cut. We part company from the Government and Fianna Fáil - as they are the parties of cosy consensus - in the idea that we can cut our way out of recession. The proof of the pudding will be in the eating. The Government has not brought forward any jobs stimulus project that is clearly funded. Numerous constructed and costed propositions have been ignored by the Government.

Does the Taoiseach agree that austerity is the problem rather than the answer? Will he look into his soul and appreciate that the only safe and sound answer in this referendum is to vote "No"? It is the only safe way to go forward with any possibility that we will get back to redeveloping our economy, getting our people back to work and building our public services. The Government is looking to give away what remains of autonomy, sovereignty and democratic rights. People can choose whether to re-elect the Government at the next election but if it brings in the European Commission and the European Court of Justice to police matters, we will not be able to vote them in or out. Does the Taoiseach agree it is absolute nonsense to suggest that in some way Fine Gael has discovered the panacea for our ills and is promoting growth? In reality, it is cutting repeatedly and increasing taxes.

Germany's Chancellor Merkel has injected her obsession with debts and deficits into the fiscal treaty. The Taoiseach might listen to the question so he is able to answer it. When he met Chancellor Merkel, did he mention the significant grievance among people in this country because a very substantial part of our inflated debt results from the activities of German and other European banks which lent recklessly to banks in this country speculating in the Irish property market? It also came from European Central Bank policy of essentially printing cheap money to benefit Germany at that time. Therefore, ordinary people have a significant grievance because they are being asked to pick up 100% of the tab for the gambling of European banks. If she wanted any hope of getting this treaty through, Chancellor Merkel might have considered writing down debts which have been forced on the people of this country as a result of the speculation of bankers and bondholders, particularly German banks.

The Taoiseach stated at the summit where he signed the fiscal treaty, and has repeated here since, that there is now great concern for growth. It is mentioned in the treaty that we need growth and investment. Will the Taoiseach explain why the only concrete target in the treaty requires austerity and cuts to meet the deficit and debt targets in the vast majority of European countries if implemented, but there are no specific figures or measures proposed for growth? What were the discussions about growth, other than simply mentioning the word 28 times in the communiqué at the March summit? The Taoiseach has mentioned it a dozen or so times here. What specific measures are proposed for growth?

Regardless of our views on economics, we all accept that the only way to get growth and jobs is through investment and demand in the economy. In other words, in order to have growth and investment, people must have money in their pockets to buy goods, and the people who have the money - primarily the banks now - must invest that money in the economy. Neither of those is happening and the ingredients of the fiscal treaty are moving precisely in the opposite direction. Two months after the summit where the Taoiseach signed the treaty with Chancellor Merkel, are they not feeling a little lonely and forlorn in Europe, as they seem to be the only people still promoting this treaty unconditionally? Everybody else in Europe is seeking concrete measures to stimulate the economy, create jobs and get investment. Every set of statistics published week on week shows that the austerity agenda is crippling growth in the economy and leading to increases in unemployment. Why are the Taoiseach and Chancellor Merkel virtually alone in saying we should pass this treaty without serious amendment at the very least?

I also asked a question about Egypt. The Taoiseach mentioned that he discussed the Arab spring and there is a very serious repression of democracy activists and independent trade unions ongoing in Egypt now that the spotlight has gone from the country. Is that being discussed? There are, essentially, attempts to crush the Arab spring and the democratic revolution in Egypt but what are European leaders doing and saying about safeguarding the democratic gains of the Egyptian revolution?

Deputy Adams found it "bizarre" that I should discuss growth in jobs and investment here with Deputy Martin.

Do something about it. It is nothing but talk.

I assume the Deputy and his constituency are the beneficiaries of the line of investment we speak about here, which is important for jobs. It goes directly to Dundalk in the case of PayPal recruiting for 1,000 jobs. I assume the Deputy does not find that bizarre.

I welcome that. I was talking about the attempt to revise recent history.

I assume that when the Deputy speaks to the young people who will be employed in Paypal in their own town and country, he does not find it bizarre. That is what we are at with the likes of Apple, Mylan, Allergan, PayPal or any of the other companies. The Minister responsible for jobs is in the United States now speaking to representatives of 20 companies about continued investment here and I assume the Deputy does not find that bizarre.

No, I do not. The Taoiseach knows that.

If the Deputy finds this bizarre and in some way incongruous that people outside our country should look at what we do and offer before investing not just in Ireland but in the Deputy's location in Dundalk, it speaks to what he is at here.

The Deputy mentioned the promissory note that was dealt with by the Minister for Finance, Deputy Noonan, and the Minister for Public Expenditure and Reform, Deputy Howlin. Deputy Adams seemed quite disappointed that we got a result - as the manager of the Irish football team said at one time - on the first tranche of the payment. He raised the issue for two months before it became a reality and when it was finally accepted that something should be done, the Deputy was a little upset.

Not in the least.

He would have loved to have been on the steps of the Four Courts with lawyers brandishing sheaves of paper about the inability of the Government to make any progress. The Minister for Finance, on behalf of the Government, will continue the discussions about the remainder of the promissory notes involved.

I agree that the legacy of people unemployed in this country is much too high. The live register figures speak for themselves and are encouraging in respect of confidence returning. The Minister for Social Protection will deal with that issue later this afternoon. Of the more than 400,000 on the live register, the Deputy will be aware that significant numbers are working part time and that others who sign on for credits are not seeking work. A restructuring and clarification of the make-up of the register should be looked at, but that does not deal with the fact that far too many are unemployed. The reason the Government has set its face towards promoting business and opening doors to it is that it is part of the stimulus process in which we are involved. The Deputy will be aware of the Pathways to Work scheme introduced by the Minister for Social Protection and the JobBridge initiative, a fabulously successful scheme with more than 5,000 people working through it. He will also be aware of the Government using the National Pension Reserve Fund for loans in respect of significant engineering projects and infrastructural development which is important in the creation of jobs and the new attitude of the Department of Finance to be progressive in looking for further opportunities for investment from abroad, be it from pension funds or the European Investment Bank. This issue is under active consideration.

We are not satisfied with the extent of unemployment and want to take every opportunity to stimulate the indigenous economy. That is why in replying to Deputy Michéal Martin earlier I referred to mortgage interest relief, the reduction in stamp duty, the non-application of capital gains tax on commercial property after seven years and face to face discussions with the banks to get moving on the release of money, in respect of which they have been recapitalised for investment and loans. That is all part of the jobs agenda.

As Deputy Gerry Adams will also be aware, we published, with monitoring by my Department, the first quarterly report on the jobs action programme. It has 270 propositions to deal with in opening doors for businesses, in dealing with red tape, taxation issues, opportunities and incentives for employers to take on young people and in terms of how to get the message out that the country is open for business. That is part of the bigger picture because the next wave of investment will be for smaller enterprises which can meet the requirements and service needs of major companies which continue to invest here. I will repeat until the Deputy is sick of it that the tax system, the technology and the talent we have available and the track record of what we offer in this country are second to none and I do not want to see them damaged in any way. That is why, from that point of view, I hope the people will endorse the treaty strongly when they come to make that choice.

In response to Deputy Richard Boyd Barrett, we discussed the question of the grievances of the people in the context of the challenge and enormous burden placed upon them in the economic circumstances in which we find ourselves. The German Chancellor is well aware of the scale of that challenge and anxious to help in every way possible. Even if we never had a fiscal stability treaty, we would have to put our own house in order. That is a fact of life people all over the country recognise. We are spending €16 billion more than we are taking in. I do not know whether people in the Deputy's cohorts who were in Galway or other places are prepared to write a cheque on behalf of the people and say to them, "Actually, you do not have to work for this at all because Boyd Barrett has come to the rescue." We are the only ones who can sort this out. Irish people, as the Deputy will appreciate, given the educational sphere from which he comes and his understanding of our history, have dealt with adversity before in a pragmatic fashion. When they are told the truth about the scale of the problem, they will say, "I want to help and sort this out" not in their own interests but in the interest of those who come behind them. We will have distinct advantages if we pull this together, as we are doing, and make progress. While the challenge is enormous, the reward will be worth it in the sense of having a country that is well run, with a thriving economy. Opportunities to make our talents available on a global scale are well worth following through.

I am heartened by the constant stream of queries from abroad about investment here and the constant energy of our own people in small and medium enterprises in the Deputy's constituency and all over the country who want to get out of this recession and to invest and employ people.

Where is that in the treaty?

That is why the Government will make no bones about continuing to promote an agenda of being open for business and opening the doors of opportunity for business. We will prove it. As I have said to people on many occasions, if they have a problem in their business, we will try to help them and we will open those doors. We have put in place the structures for this and will continue to do so. We will indicate on a quarterly basis the progress we have made, be it with broadband or red tape and so on to enable business to thrive.

The EU High Representative, Catherine Ashton, gave a detailed response at the last Council meeting on what had happened in Egypt, but the focus of the meeting was on Syria, where the situation was completely disastrous. I can have details of the issue raised by the Deputy in respect of Egypt brought to her attention for a more detailed response.

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