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Dáil Éireann Vol. 776 Wednesday, No. 1 26 September 2012 DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES DÁIL ÉIREANN TUAIRISC OIFIGIÚIL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Insert Date Here 26/09/2012A00050Leaders’ Questions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 2 26/09/2012D00500Order of Business � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11 26/09/2012F02300Ministerial Rota for Parliamentary Questions: Motion � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 19 26/09/2012F02600Topical Issue Matters � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 19 26/09/2012F02800An Bille um an Aonú Leasú is Tríocha ar an mBunreacht (Leanaí) 2012: An Dara Céim (Atógáil)� � � � � � � � � 20 26/09/2012F02900Thirty-First Amendment of the Constitution (Children) Bill 2012: Second Stage (Resumed) � � � � � � � � � � � � � 20 26/09/2012U00100Ceisteanna - Questions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 45 26/09/2012U00200Priority Questions� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 45 26/09/2012U00300Child and Family Support Agency � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 45 26/09/2012U00900Children in Care � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 47 26/09/2012V00550Budget 2013 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 50 26/09/2012W00550Child Care Costs � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 52 26/09/2012X00550Children in Care � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 55 26/09/2012Y00450Other Questions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 57 26/09/2012Y00550United Nations Conventions� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 57 26/09/2012Z00450Child and Family Support Agency � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 59 26/09/2012AA00150Child Care Services � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 61 26/09/2012AA01050National Play and Recreation Policies � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 62 26/09/2012BB00700Topical Issue Debate � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 64 26/09/2012BB00800School Patronage � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 64 26/09/2012CC00350Banks Recapitalisation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 67 26/09/2012EE00150Television Reception � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 71 26/09/2012FF00300Missing Persons � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 73 26/09/2012GG00300An Bille um an Aonú Leasú is Tríocha ar an mBunreacht (Leanaí) 2012: An Dara Céim (Atógáil)� � � � � � � � � 76 26/09/2012GG00400Thirty-First Amendment of the Constitution (Children) Bill 2012: Second Stage (Resumed) � � � � � � � � � � � � � 76 26/09/2012ZZ00300Magdalene Laundries: Motion (Resumed) [Private Members] � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 114 26/09/2012LLL00100An Bille um an Aonú Leasú is Tríocha ar an mBunreacht (Leanaí) 2012: An Dara Céim (Atógáil)� � � � � � � � 141 26/09/2012LLL00200Thirty-First Amendment of the Constitution (Children) Bill 2012: Second Stage (Resumed) � � � � � � � � � � � � 141 DÁIL ÉIREANN Dé Céadaoin, 26 Meán Fómhair 2012 Wednesday, 26 September 2012 Chuaigh an Ceann Comhairle i gceannas ar 10�30 a�m� Paidir. Prayer. 26/09/2012A00050Leaders’ Questions 26/09/2012A00100Deputy Micheál Martin: I refer the Taoiseach to the joint statement of the Ministers for Finance from Germany, Finland and Holland on the separation of bank debt from govern- ment debt and the June European Council decision� By any reading of the statement, it must be seen as a grave disappointment and extremely depressing in terms of their interpretation and understanding of the June deal and their articulation of principles which will govern the so-called separation of bank debt from sovereign debt� Alarmingly, they describe the role of the European Stability Mechanism, ESM, in recapitalising banks as a longer term issue� They state, “Regarding longer term issues, we discussed basic principles for enabling direct ESM bank recapitalisation, which can only take place once the single supervisory mechanism is es- tablished and its effectiveness has been determined”� It is not that it can take place when it has been established; we have to wait to see if it is effective before recapitalisation can take place� The statement continues: The ESM can take direct responsibility for problems that occur under the new supervi- sion, but legacy assets should be under the responsibility of national authorities ��� the re- capitalisation should always occur using estimated real economic values� This latter point will have real implications for us� The statement then goes through the ba- sic order of bank recapitalisation of, first, using private capital, then national public capital and, only as a last resort, the ESM� Mr� Karl Whelan, an economist who enjoys acceptance across the House, has interpreted this as a message from the three countries to Ireland and Spain to drop dead. By any analysis, it is either a significant resiling from or a different interpretation entirely of the decision at the June meeting� Has the statement come as a surprise to the Taoiseach and the Minister for Finance, Deputy Michael Noonan? Did he have any inkling at all that it was coming? Last week in the Dáil the Taoiseach confirmed to me that since the June meeting he had only met the Slovenian 2 26 September 2012 Prime Minister� He has not met the Dutch or Finnish Prime Minister or the German Chancel- lor� Clearly, the grass has grown under his feet since the June summit meeting� It speaks of an approach that he has adopted to avoid hands-on negotiations himself or direct engagement with other leaders who are key to the working out of the eurozone crisis� Will he commit to undertake an urgent diplomatic initiative with the Prime Ministers of the three countries to have a clear and honest articulation of what they are prepared to do to genuinely separate bank debt from sovereign debt? 26/09/2012A00200An Ceann Comhairle: We are over time� 26/09/2012A00300Deputy Micheál Martin: As Mr� Whelan said, the statement reinforces the vicious link between bank debt and sovereign debt� 26/09/2012A00400The Taoiseach: First, it is important to appreciate the scale of the challenge the European Union and the eurozone faces� We are now in the fourth year of economic challenges and dif- ficulties. The Deputy spoke of a clear and honest articulation. My job as Taoiseach and Head of Government is to deal with the other 26 EU Heads of Government when they meet in formal session� The decision taken on 29 June at the European Council has been articulated clearly: We affirm that it is imperative to break the vicious circle between banks and sovereigns. The Commission will present proposals on the basis of Article 127(6) for a single super- visory mechanism shortly� We ask the Council to consider these proposals as a matter of urgency by the end of 2012� That was the first element of the decision made by the Heads of Government to break the link between sovereign debt and bank debt and to allow for the direct recapitalisation of banks� This was clear without any misunderstanding� The second element of the decision states: The Eurogroup will examine the situation of the Irish financial sector with the view of further improving the sustainability of the well-performing adjustment programme� Similar cases will be treated equally� These were the two decisions made about the eurozone and Ireland specifically. They both stand and will be implemented� They are decisions, without equivocation, made at the meeting of the Heads of Government on 29 June� As the Deputy will be aware, during the course of negotiations, statements can be made from different perspectives� Last Friday I had the opportunity to meet the Spanish Prime Min- ister, Mr� Rajoy; the Greek Prime Minister, Mr� Samaras, and the Italian Prime Minister, Mr� Monti� In each meeting we discussed the ongoing negotiations on the implementation of the 29 June decision� That is the position and the one taken by the Irish personnel involved in negotiations, including the Minister for Finance who has had intensive discussions with his
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