Kenny says 'the white flag has been raised'

THE EUROPEAN Commission, the European Central Bank and the IMF are coming to Ireland “effectively to dictate the terms of a bailout to the Irish Government and the Irish State”, Fine Gael leader Enda Kenny said in the Dáil.

However, Taoiseach Brian Cowen insisted, during testy exchanges on the proposed talks with the European partners, “that there has been no dictation from anybody”.

“What we’re involved in here is working with colleagues in respect of currency problems and euro issue problems that are affecting Ireland. They’re affecting other countries. They’re particularly affecting Ireland at the moment.”

Mr Cowen stressed that “there has been no question, as has been stated all over the weekend, of a negotiation for a bailout”.

Mr Kenny said, however, that “the white flag has been raised, the towel has been thrown in and like the prowler waves of the west coast they’re coming on Thursday.”

He believed they were not coming “to say ‘hello, keep at it’.”

“We know that when moneys such as this become available from the fund, they come with a special set of policy conditions, with a memorandum of understanding, with a generally accepted annual interest rate of 5 per cent, with a 3 per cent administration fee on top of that, and strict conditions that apply to it. That’s what they are coming here to talk about and to dictate to the Government.”

Mr Kenny said the talks would continue until the Taoiseach “decides to publish the four-year fiscal plan, and the money that will be on offer will be made available whenever he decides to trigger it”.

The Taoiseach said discussions would take place “in a short and focused consultation with the European Commission, the ECB and the IMF in order to determine the best way to provide any necessary support to address market risks, especially as regards the banking sector, in the context of the four-year budgetary plan and the forthcoming budget”. When the discussions were concluded “people will have an opportunity to examine and discuss all issues”.

“It is important that everybody understands the implications of any proposals and that they are thought through.”

During Leaders’ Questions the Fine Gael leader pointed out that “the Minister for Finance said it’s important that where assistance might be forthcoming from Europe, that those involved in that assistance should be given the full facts”.

Yet he said “this House was never given the full facts. This country was never given the full facts. The people were never given the full facts.

“And now we’re told that it’s all about structural deficiencies in the banking system despite the fact that time and again the Government said that everything is now fine. ‘Green shoots coming out of the tunnel, we’re on the way up, we’re on the way back. What’s good for Fianna Fáil is good for the country.’ Well now we know the truth. The white flag has been raised, the towel has been thrown in and like the prowler waves of the west coast they’re coming on Thursday.”

Mr Cowen said Mr Kenny was attempting to find “some means of suggesting that there is less than full transparency in relation to these matters”.

He said “there is support from European colleagues in respect of all the policy initiatives that this Government has taken to address these issues. What we want to concentrate on now is in a focused way over coming days to sit down and see what way can assistance be provided to ensure that these issues are dealt with appropriately and properly in present circumstances.”