Leaked Bundestag discussion of Ireland’s finances
Mary Lou McDonald challenged the Government over German parliamentarians examining leaked documents on Ireland’s austerity programme and asked how long the Government had possessed them, while also raising the prospect of a mini-budget. The Tánaiste said the document would be published, denied a mini-budget was needed, criticised the leak and defended the Government’s recovery strategy and reliance on international support.
The Tánaiste and the Taoiseach repeatedly tell us that they wish to restore Irish sovereignty. However, they do not seem to be having very much success. They propose a referendum to give away even more control over Ireland's economic affairs while the German Parliament discusses the Irish budgetary situation when Members of this House and the public are kept in the dark. For a second time, the finance committee of the Bundestag, has discussed sensitive documents relating to the austerity programme of the troika - the Government's external partners - before the Irish public and Members of this House or the Joint Committee on Finance, Public Expenditure and Reform, have even seen them. This is a ludicrous situation in which German parliamentarians discuss the economic situation in Ireland while we in Ireland are kept in the dark.
The substance of these documents, it seems, is also deeply troubling. The Commission's report suggests that the Irish State may require a mini budget in 2012. The European Commission appears to be recommending greater cuts and tax hikes. We in Sinn Féin have repeatedly warned that unless there is a change in the direction of Government policy, Ireland may not meet the troika targets and a mini budget may be necessary. If these reports are true, then it seems our fears will have been confirmed.
I understand the report also suggests that the Commission demanded a revised assets sale programme from the Government in December. Is this how €2 billion of a fire sale became €3 billion? Was the Tánaiste aware that the finance committee of the Bundestag would be discussing these documents? Does he propose to publish them? Is the State facing a mini budget in 2012? Did the Government cave in to a Commission demand for more State assets to be sold? Will the Tánaiste confirm that it is in fact Frankfurt's way rather than Labour's way?
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Deputy McDonald is doing a lot of reading this morning. Paper never refuses ink and neither, apparently, does Sinn Féin.
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Perhaps Members might like to listen to the reply please. We have an increasing number of comedians every day. I ask Members to allow the Tánaiste to reply.
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Deputy Doherty was not out this week.
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I want to hear if there is to be a mini budget.
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The document to which Deputy McDonald referred says a number of things. It is a staff document, as I understand, prepared by some staff in the European Commission and which was leaked. However, it has a number of positive observations about this country. It says that the Irish economy is expected to have returned to growth in 2011. It states that our general Government deficit is estimated to have been well below the programme targets and that the recapitalisation of the domestic banks has been substantially completed. It observes that reflecting the strong performance under the programme, financial market confidence in Ireland has continued to improve. This document should be put in perspective, confirming as it does what the Government has been saying for some time, that this country's economy is recovering and it will recover under this Government.
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Does the Government have the document?
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The document will be published today. I hate to disappoint the Deputy but a mini budget will not be necessary.
I am unhappy at the way in which this document was handled and how it was leaked. The matter has been raised this morning with both the German finance ministry and with the European Commission. I intend to pursue the issue. I will discuss it with our ambassador in Berlin and I will ensure that the way in which this document was handled is not repeated.
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The Tánaiste may wish to try to trivialise matters when they are raised in this session. He may be amused at his own jokes - his backbenchers clearly are - but I hazard a guess that-----
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-----people who are suffering from the results of his austerity will not find this a bit funny.
I am glad to hear he will pursue this matter again. He told us this the last time. Does he remember the last time the Bundestag finance committee discussed the economic circumstances of this State at length? On that occasion, he also told us he would pursue the matter vigorously. If there was ever an example of his ineffectiveness and his failure, it surely resides in the fact that we now have episode two of exactly the same scenario. Maybe that is not surprising-----
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-----because he is clearly very happy that Germany, perhaps France, the Commission and outside agencies and institutions would have a first view, a first opinion and a final decision-making capacity in respect of the economic governance of this State. His colleague, the Minister for Transport, Tourism and Sport, Deputy Varadkar-----
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-----thinks the referendum is still undemocratic. He obviously would prefer the German parliamentarians to take decisions for us.
The Tánaiste told us there will not be a mini-budget.
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He indicated that he has this document. Will he tell us how long he has had it? How was it that parliamentarians in Germany saw and debated it before any Member of this House? Will he give a serious answer rather than a trivial one because that would be extremely helpful?
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I never give trivial answers. I do not trivialise what has happened to our economy or the difficulties people have in coping with the consequences of what has happened to it, including the loss of jobs. There are people in Cork this morning, for example, who are being asked for voluntary redundancies. I am acutely aware of that, as is the Government.
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The Tánaiste should do something about it.
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That is why our programme and strategy is to work our way to economic recovery. That cannot be done by some kind of abracadabra economics which Deputy McDonald seems to advocate from time to time. It must be done consistently and over a period of time.
She talks about people external to this country. The reality, given the state of the economy we inherited this time last year, was that nobody in the financial markets would lend to this country and we had become reliant on finance from external people - the European Commission, the ECB and the IMF. Since last year we have worked consistently to stabilise the economic situation, to get growth back into the Irish economy for the first time in four years, to pursue a trade and investment strategy in order to get jobs into this country and to pursue a jobs strategy which is set out in our action plan for jobs and in Pathways to Work.
There is no easy solution or quick fix to the Irish economy. The only solution to the Irish economy is to work our way out of the programme in which we found ourselves, which is how we will get back our economic sovereignty, and to create jobs and growth in our economy and in the European economy. That is what will work and is what the Government is concentrating on.
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The Tánaiste should answer the question. Why are they discussing a mini-budget in Germany before we have the chance to discuss it?