Kenny demands 'statement of truth' from Government

TAOISEACH Brian Cowen refused to be drawn yesterday on the detail of any contacts between the Government and EU authorities.

Mr Cowen said there had been rumour and conjecture for some time regarding Ireland’s position, which he had clarified over the weekend.

“Despite suggestions to the contrary from others, from whatever quarter – some of them may not be disinterested – this country has not applied to enter a facility.

“We made the point and we have been making it, that we are pre-funded up to mid-2011.”

Mr Cowen said there had been a continuing problem relating to underpinning banking and financial stability within the euro area generally.

Peripheral countries, including Ireland, because of the size of the deficit and other issues including banking, had to deal with those situations.

All policy initiatives taken had been carried out with the consent and approval of the EU institutions, said Mr Cowen.

He was responding to Fine Gael leader Enda Kenny, who demanded “a statement of truth” about what had gone on in the past fortnight.

Mr Cowen said the Government was “working with partners in the EU as to how to deal with the issues which now affect the euro right across the euro area”.

Mr Cowen said they should allow those discussions at the finance ministers’ meeting in Brussels “and we will be in a position to come back to the House after the Ecofin has met to discuss it further”.

Earlier, Mr Kenny recalled that in 1959, Seán Lemass said the historic task of that generation was to consolidate the economic foundations of political independence.

“You, Taoiseach, and your Government, politically, have betrayed our country,” he added.

“You have let down the founding fathers of your own party. You have let down those who fought to achieve Irish independence and, by your actions, you have now endangered the economies of other European countries.”

The Taoiseach’s biggest failure, Mr Kenny added, was to let down the Irish people. He said the Government’s blatant incompetence had resulted in the Irish people now being paralysed by anxiety and concern about the future.

He referred to the “outright dishonesty of what happened over the past week, with Minister after Minister proclaiming that all is rosy in the garden . . . it is a very far remove from the reality on the streets of Ireland”.

Mr Cowen said he regretted “the tone and content” of what Mr Kenny had to say. The Government had taken all necessary steps to secure the economy and the finances of the State and provide a functioning prospect for recovery.

This, he said, had been opposed at practically every step of the way by the Opposition parties.

Replying to Labour leader Eamon Gilmore, the Taoiseach said that “the impending sense of crisis that some wish to suggest is not a fair reflection of the facts”.

He said the Government was in “discussions with our European counterparts to see in what way we can assist to ensure that market risks are taken out of the equation”.

Mr Gilmore insisted the Taoiseach provide clarity on the issue.

“It is one thing for you to present that there is a general discussion about the euro-zone area,” he said. “What is appearing is that there is a specific discussion about Ireland’s position.”

Mr Cowen said the Government was seeking to “underpin stability for the whole euro area, including Ireland”.

The ongoing discussions by Irish officials had been to ensure that people understood what the Irish position was and what the basic strengths of the economy had been, the Taoiseach added.