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Cabinet Committee Meetings

Dáil Éireann Debate, Tuesday - 15 July 2014

Tuesday, 15 July 2014

Ceisteanna (1, 2)

Gerry Adams

Ceist:

1. Deputy Gerry Adams asked the Taoiseach the number of meetings of the European affairs committee of the Cabinet has held since Christmas. [14764/14]

Amharc ar fhreagra

Joe Higgins

Ceist:

2. Deputy Joe Higgins asked the Taoiseach the number of meetings of the Cabinet committee on European affairs has held since the winter recess. [19934/14]

Amharc ar fhreagra

Freagraí ó Béal (14 píosaí cainte)

I propose to take Questions Nos. 1 and 2 together.

The Cabinet committee on EU affairs has met three times this year to date, most recently on Monday, 30 June and also on 31 March and 24 February. This year is a time of major institutional change in the European Union. The new European Parliament officially took up office last week in Strasbourg, and we will have a new European Commission, High Representative for Foreign Affairs and President of the European Council in coming months.

The Cabinet committee on EU affairs will continue to meet throughout the year to discuss and shape Ireland's strategic approach to our EU engagement. The committee will work to ensure a coherent approach across all policy areas, particularly on priority issues for Ireland and above all to anchor Ireland's influence and interest in Brussels. This strategic approach at EU level will continue to include bilateral engagement with fellow member states and alliance building with key partners.

Is the Taoiseach satisfied with the number of meetings of this committee that have taken place? Is he confident there have been enough to enable the Government to have a proper focus? He has said that part of its remit is to set priority issues for Ireland. Clearly our relationship with Europe is vital for the State. There are other issues that should be priority issues which are not entirely domestic or even internal EU issues. I am thinking here of conflict-resolution necessities. For example, when the EU heads of mission Jerusalem report was published recently, I asked for the Government, which then held the EU Presidency, to give leadership on this vital matter of international concern and to act urgently on the information and recommendations made by EU officials.

This heads of mission report on Jerusalem indicted the Israeli Government of violating international humanitarian law but, sadly, nothing was done. I was unable to establish whether this was discussed at any pertinent meeting or forum within the leadership of the European Union and, this year, Members can see a repeat of all the sad and tragic events of 2012 and 2009. Does the issue of conflict resolution constitute a priority for this State? Members should revisit for a moment or two the fact that within a short period almost 200 people have been killed in the Gaza Strip as a result of the Israeli assault. Human rights groups have stated that 75% of the dead have been non-combatants and the United Nations agency for Palestinian refugees has stated that more than one quarter of them have been children. Moreover, 70,000 people have fled their homes, particularly in northern Gaza. While there is now a possibility of a sos on foot of the proposition being forward by Egypt, this could just become another lull, as has been seen in the past. Surely the Irish Government and the aforementioned committee could focus on these matters and ensure that all efforts are made to assist and encourage peacemaking in the Middle East, to uphold the rights of the people of the Palestinian territories and to use our good offices within the European Union to ensure this is not just another temporary lull before violence resumes once again.

Obviously, issues like this that arise are monitored constantly by the European Union and are the focus of much attention from the High Representative. To date, Baroness Catherine Ashton has been very active in dealing with a range of difficult situations arising in Syria, Jordan, Lebanon, Crimea, Ukraine and now, Israel and Gaza. Clearly, this situation cannot be allowed to get out of hand. Members see the reports on a daily basis of the numbers of innocent women and children being killed here, as well as hearing of reports of indiscriminate firing of rockets from areas in Gaza, which is a contributory factor to this matter going the way it has. The Minister for Foreign Affairs and Trade has made contact with a number of personnel involved in this. No one wishes to see this happen and, ultimately, they clearly must sit down around a table and work these things out. The solution here has been proposed for a very long time, which is a viable two-state solution that represents the only sustainable basis for a just resolution of the Israeli-Arab conflict. However, it will not be an easy task to get from the current position to that point. When I attend the European Council meeting to be held tomorrow and on Thursday in Brussels, a great deal of attention will be given to this matter. One does not desire a situation in which another conflict gets out of hand with the horrendous maiming and deaths of innocent women and children.

At the three meetings to which I referred, this matter was not discussed in detail because it is discussed as part of the European Council focus. There always is a special section given over to issues that arise in which the High Representative makes her case and gives an up-to-date report on whatever conflict is around at the time, be it in Ukraine, the Crimea or wherever. I hope that sanity can prevail in this regard and it is not a good situation when, as I understand, citizens are being put in situ around buildings that subsequently are blown up. We wish to avoid deaths that are unnecessary - not that any of them are necessary - but this is a situation that requires clear heads, sanity and negotiation to allow people to get on with their lives. The situation that applies in Gaza and Israel now is exceptionally difficult.

Deputy Higgins has Question No. 2.

I ask the Taoiseach to restate briefly the role of the European affairs committee of the Cabinet. Does it have any particular role with regard to the issue of the retrospective repayment by the European banking system of the tens of billions of euro with which the Irish people were forced, by the institutions of the European Union and the European Central Bank, to bail out Irish and European bondholders and speculators? Does it have a role in reviewing the outcome of the summit of June 2012 when the Taoiseach stated the special position of Ireland had been recognised and that a seismic shift had taken place in European policy with regard to bank recapitalisation? This clearly suggested that the huge moneys that were taken from the pockets of our people, with the resultant disastrous austerity that was imposed, would be recouped. What is the role of the aforementioned European affairs committee with regard to progressing this matter because no progress has been seen over the past two years. Lest Members did miss a manifestation of the seismic shift since then, can the Taoiseach tell Members when and where did it happen? I ask in particular against the background of some studies stating that more than 40% of European bad debt was forced onto the shoulders of our people, which was totally unsustainable as we have seen.

Second, I refer again to the European affairs committee of the Cabinet and the issue of the Middle East. Is one of the roles of that Cabinet committee to review European policy and, more importantly, European actions by the Commission and the bureaucracy of the European Union towards the whole Israeli-Palestine crisis? In that regard, why does the Taoiseach tolerate a situation in which the European Union as an institution continually favours Israel in trade matters, for example, as well as in other areas, in view of the horrific affliction of repression and enormous suffering occasioned by the bombardment of the Palestinian people, 1.8 million of whom are imprisoned in a tiny strip of land in the most horrific circumstances? Does this not cry out for an absolute cessation of the Israeli bombardment and repression and for an entire change in policy?

I will state, in order that I am not misunderstood, that rockets fired by Hamas are indefensible.

Deputy, we are straying a bit now.

Any indiscriminate firing towards a civilian population is utterly taboo. However, they have not killed anybody, thankfully, but nearly 200 Palestinians have died.

Is it not incredible that a State that is supposedly democratic and civilised and is put forward as such by the European Union and United States believes it is okay to massacre innocent relatives - women, men and children - when targeting a police official? If the European Union believes any of what it says about standing for civil and human rights worldwide, must it not take very strong action on this matter?

I have been a little liberal in allowing the discussion to stray from questions on the number of times a Cabinet committee has met.

The Deputy asked two questions in respect of whether the Cabinet committee considered recapitalisation and the decision taken by the European Council in 2012. The committee does not reflect in detail on these matters as they are dealt with by the Department of Finance. Notwithstanding the comments made here, including the statement by Deputy Higgins that nothing had happened in two and a half years, the facts are that the promissory notes have been replaced; the former Anglo Irish Bank and Irish Nationwide Building Society are being liquidated; the minimum wage has been reinstated; the interest rate on European Union funds has been reduced, which will save taxpayers €9 billion; the EU loans to Ireland have been extended; and agreement has been reached to allow half of the proceeds from sales of State assets to be retained for investment in jobs.

Following on this detailed work, the Eurogroup agreed that retrospective recapitalisation may be decided on a case-by-case basis in line with the decision that was made on 29 June 2012. The euro area Heads of State and Government confirmed this position and mandated EU finance Ministers to prepare an operational framework to deal with this matter by mid-2013. The European Stability Mechanism direct bank recapitalisation instrument, the technical mechanism that provides for this, has been approved. We have succeeded in having specific provision for retrospective recapitalisation included in the main features of the operational programme, which states: "The potential retroactive application of the instrument should be decided on a case-by-case basis and by mutual agreement." This agreement gives Ireland the option of applying to the European Stability Mechanism for a retrospective direct recapitalisation of the Irish banks. An application can only occur, as Deputy Higgins is well aware, after the single supervisory mechanism becomes operational, which is most likely to occur towards the end of 2014. Any application for retrospective recapitalisation will be considered in light of the potential returns to the State from alternative options for realising the value of the State's bank holdings. The agreement on the single resolution mechanism between member states will protect European taxpayers from the costs of bank failures.

Deputy Higgins should note that of the total national debt of €203 billion, €40 billion relates to banks and the cost of servicing this part of the debt is now less than €1 billion. Sometimes figures are used to suggest that all the national debt is related to banks whereas bank related debt accounts for €40 billion of the total of €203 billion.

The position in Gaza is exceptionally difficult. I happened to visit Gaza a number of years ago with other public representatives and I recall that an Irishman, Mr. John Ging from Dublin, was in charge of UN operations in Gaza in respect of providing water, education and food services. Mr. Ging did an extraordinary job.

I agree with Deputy Higgins that rockets are indefensible and any death is one death too many. This issue will be discussed at the European Council meeting on Wednesday and Thursday. Egypt has made a proposition that may or may not be acceptable to some of those around the table. No more than in any other conflict, the current conflict will not be concluded by aggressive military action. It must be concluded by an agreement on a set of conditions for a ceasefire that allows people to get on with their lives. People in this country, where 3,000 people lost their lives over a long period, know this only too well. Peace was concluded with the Good Friday Agreement when people were in a position to talk, negotiate and discuss. It was a fragile peace in the beginning and while it remains fragile in many ways, it has been kept on track.

The Cabinet committee does not deal with the detail of these issues. The Minister of State with responsibility for European Affairs deals with these issues as they arise at European level. They also come before the European Council meeting at which regular reports and updates are provided by the High Representative and I expect this will be done again this week.

I remind Deputies that this is the final time we will have questions to the Taoiseach in this session. I ask them not to stray further from the questions because we want to dispose of some the remaining questions.

I will try not to stray.

In the context of the meetings of the Cabinet committee on European affairs, has consideration been given to specific individuals who may replace the President of the European Council, Mr. Herman Van Rompuy, or High Representative, Baroness Catherine Ashton? If so, to what extent has the Government engaged with these potential replacements on the issues that have been raised in respect of retrospective recapitalisation? Will the replacements be announced at the forthcoming summit meeting or are further delays anticipated?

In terms of the Taoiseach's engagement with the replacements, may the House assume that his support for a new High Representative and, more important, a new President of the Council, will be contingent on the level of support the candidates will give to Ireland on retrospective recapitalisation? In terms of the timescale for this vital initiative, may we also assume from the Taoiseach's reply that the Government may make an application for retrospective recapitalisation towards the end of this year? If that is the case, when does the Taoiseach expect our EU partners to make a decision on the matter?

We all welcome the intervention in Gaza by Egypt as it attempts to broker a ceasefire and all of us will use this occasion to condemn the slaughter of the innocent we have witnessed recently. As an Irishman and a European, it has saddened me greatly on this occasion and on many previous occasions that, time and again, it is the Americans who are at the centre of intervention, whether on the issue of Ukraine or on the age-old problem of Israel and Palestine. The European Union must appoint a High Commissioner on foreign affairs who will actively engage on the issue of Ukraine given that he or she is more likely to be successful in terms of an approach to the Russian authorities.

On Gaza, Palestine and Israel, it is horrific to note the decline of the Palestinian economy. Is there an opportunity for the Cabinet committee to engage in discussions on the economic crisis facing 1.8 million people in Palestine and how the Palestinian economy could be developed to meet their needs? I understand a critical problem is developing in the water supply to Palestinian people. If, in addition to a failed economy and energy supply system, the water supply fails, it will spell disaster.

I am trying to get my head around these matters and the sub-committee. It may be helpful if the Taoiseach could spell out the terms of reference for the European Affairs Committee. He said the issue that I raised was not discussed at this meeting on the EU heads of mission Jerusalem report. He went on to say that the issue of the Middle East would be dealt with on Wednesday, but who gives the guidance to our representatives for that meeting at which these matters will be discussed?

I think both the Taoiseach and I are agreed that the EU has a vital role to play in helping to end conflict, but that needs leadership. The Taoiseach remarked earlier that he hoped the insanity will end. Let me tell him, however, that the insanity will not end - it has to be ended. Therefore, politics has to be made to work and these international fora are a perfect mechanism for asserting the peacemaking imperative, particularly when the EU itself has reports from its own heads of mission, which point the way forward. If these matters were not discussed within our Cabinet sub-committee and if, as far as I can establish, the Government has not raised them, then who gives guidance? As I am trying to get my head round all of this, it would be useful to get the terms of reference for the European Affairs Committee.

I hope I am quoting the Taoiseach properly, but in his response he said that civilians are being put in situ around buildings which are then blown up. Can he clarify that for the House in some way? All the independent agencies as well as the UN, other human rights agencies and NGOs, are not saying that. The Israeli Government is saying it.

The Taoiseach also said that the two-state solution, which I accept, is the solution but the Palestinians do not have a state. Surely, we as a State which has experience of peacemaking can use our good offices to try to expedite, encourage and assist the process of peacemaking and peacekeeping in the Middle East.

I understand from some reports that people have been placed in situ around buildings and are subsequently used as shields around buildings which, unfortunately and tragically, are blown up. There are different reports coming through on that basis which is why I made that comment.

Deputy Ó Fearghaíl raised a question about retrospective recapitalisation. He is aware of the fund that is left aside from the ESM for that purpose. All the different elements and pieces of the jigsaw have to be put in place, including a single supervisory mechanism. This is principally driven by skilled officials from the Department of Finance in co-operation with their counterparts. That was accepted by the Council of Finance Ministers and adopted and approved by the European Council. All those structures have now been put in place. To make it kick in, the mechanism has to be operational which it will be towards the end of the year. That means that Ireland, or any other country that thinks it might qualify, can then make an application.

As I told Deputy Adams, the Eurogroup already agreed that retrospective recapitalisation could be put forward on a case by case basis against any alternative options for realising the value of the State's bank holdings. That requires not so much the support of representatives at various levels, such as the President of the Commission, the President of the Council or the High Representative but - while these are very important positions - the board of the ESM which will, or will not, approve an application for retrospective recapitalisation. It has got to be a unanimous decision. For instance, if the President of the European Commission, the President of the European Council or the European Union's High Representative were to offer support for a recapitalisation application, it does not follow that it would happen. Much more important is the fact that the European Council has already adopted, approved and reiterated on a number of occasions that decision of 29 June 2012, and that there should be the option and possibility of direct recapitalisation following an application made by a country being approved. The point is that all those sections are now in place. When it becomes operational at the back-end of this year, Ireland will then consider lodging an application. For that application to be successful it will require the unanimous endorsement of the ESM board. That is the important point to bear in mind. It has already received the full consent from the European Council which has been reiterated on many occasions.

I am not sure what time the vote is today for the approval by the European Parliament of Jean-Claude Juncker to be President of the Commission. Deputies will be aware that there was an EPP congress in Dublin, including a selection contest and a vote. Mr. Juncker defeated Michel Barnier and thus became the EPP candidate. The Lisbon treaty provides that the outcome of the European Parliament elections must be taken into account. The outcome was that the EPP bloc happened to be the largest grouping in the Parliament, so Mr. Juncker became the EPP's nominee and I expect he will be backed by the socialist grouping today to become President of the Commission.

The Deputy asked if the EU committee discussed the appointment of the President of the Council or the High Representative. No, these matters are discussed by the Council of heads of state and government, which will be reflected again this week. It is important that a decision be made on the High Representative this week because that is an important position. It allows the President of the Commission to move on with the appointment and endorsement of Commissioners, as nominated by the various countries. In this case, the former Minister, Deputy Phil Hogan, has been nominated by Ireland. In consideration of what portfolio might be given to him by the President of the Commission, Mr. Juncker, that goes before the European Parliament for assessment, scrutiny and engagement with the different nominees. From that point of view, the naming of a person to be the High Representative will be dealt with this week because it allows President Juncker to move on with his business.

The whole geopolitics of the Middle East is changing, as the United States becomes more independent in terms of energy. Europe has got to look differently at the Middle East, including Saudi Arabia, Syria, Lebanon, Jordan and all those countries. That issue is becoming prevalent. Clearly, Russia supplies huge amounts of gas to Hungary, Germany and other countries. This issue is of great concern to Europe where energy costs have risen by 60%, while they have dropped by 60% in America.

The supply of water was also mentioned. The former Minister, Deputy Shatter, had an ongoing engagement seeking consent in respect of Turkey, concerning the situation in Gaza and Israel, for the supply of quality water to Gaza. That has become very difficult with the current situation but I hope to take it up again when things, hopefully, improve.

Deputy Adams mentioned diplomatic interventions by the EU High Representative and the member states. Of course it must be asked how can any conflict be ended unless politics works. Who knows better than Deputy Adams the difficult situations that can arise. In so far as the EU is concerned, we will attempt to drive that further this week in asserting peace and the right of people to live without fear of being blown into oblivion.

It was remarked that rockets from Gaza are directed by Hamas, while there is a response from Israel. Some 200 deaths have resulted, so we want to see this ended. People should be allowed to get on with their lives in so far as that can be asserted in Gaza. Of all the places I have ever been, I have to say that I found it exceptionally difficult to see how an economy can function there or to see how people can have a life to live, given the difficulties they have to encounter.

On the other hand, citizens in Israel, whether Jerusalem, Tel Aviv or anywhere else, have the right to go about their business without fear of stray rockets coming from whatever quarter.

Deputy Mattie McGrath, who tabled Question No. 3, is not present.

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