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Dublin: 12 °C Friday 24 May, 2013

Junior Minister: Bank debt deal negotiations best done in private

Brian Hayes said that outlining Ireland’s negotiating position in public would not be “very clever from the country’s perspective.

Junior finance minister Brian Hayes
Junior finance minister Brian Hayes
Image: Mark Stedman/Photocall Ireland

JUNIOR FINANCE MINISTER Brian Hayes has said that negotiations on addressing Ireland’s legacy debt are best done in private.

Hayes was responding to quotes attributed to a German government spokesperson yesterday that Ireland did not enjoy ‘special status’ when it came to bank debt which appeared to partly contradict a joint statement from Taoiseach Enda Kenny and German chancellor Angela Merkel on Sunday.

The Minister of State said that the debate on whether or not Ireland would get a deal to reduce the burden of its €64 billion bank bailout debt had reached “farcical proportions” and said that the country needed to concentrate on what was said in the joint statement at the weekend.

He told TheJournal.ie: “I just think now is the time where we continue to negotiate and it’s better that these are done, effectively, behind closed doors.”

In a significant statement issued at the weekend Merkel and Kenny acknowledged that Ireland “is a special case” with regards to the sustainability of its bailout and the June 29 statement from EU leaders which committed to breaking the link between banking and sovereign debt.

Merkel had on Friday appeared to rule out retroactive use of the European Stability Mechanism – the eurozone’s bailout fund – to capitalise banks in Ireland or anywhere, but she was responding specifically to a question about Spain.

‘A silly thing to do’

Yesterday, the Taoiseach got a further boost from French president Francois Hollande who also acknowledged that Ireland was “a special case” and Hayes said there was now “a job of work to be done” with regards to negotiating a more sustainable position on Ireland’s debt.

“We should only be judged at the end of the process, not in the middle of it,” he said.

“And we should really just be getting on with that task and not spending huge amounts of time responding to every single thing that is said from some spokesperson or another.”

Hayes would not comment on any specifics with regard to Ireland’s favoured position in its negotiations and reiterated the need for such negotiations to remain private.

“We’re not saying publicly what we’re backing at the moment, that would be a silly thing to do in advance of the negotiations,” he said.

The Fine Gael TD went on to say: “I can understand why people are frustrated that we cannot, on a daily basis, go through a negotiation.

“But when you’re negotiating it’s best done in private I would have thought, because once that position is known in public that becomes your default position and that’s not very clever from the country’s perspective.”

Yesterday: French president Hollande: Ireland’s bailout is ‘a special case’

Read: Fianna Fáil, Sinn Féin call for clarification of Merkel and Kenny communiqué

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Comments (91 Comments)

  • It’s cool, relax…we’re special. It’ll be grand.

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  • one school teacher(enda kenny) playing poker with our future another teacher(brian hayes) wanting the poker game in private,, its quite simple the both of these gombeen men are out of their depth,, jelly fish swimming(no spine) swimming with sharks,,, there will be no debt reduction end of story,,, they will stretch the debt out for another 30 or 40 years drop the interest rate we will pay more over longer and dumber and dumber aka kenny and hayes will swan around rte telling us we got the result of the decade,,we deserve no better ,,, we keep putting school teachers butchers and bakers into office,,,,, bless the fools they know not what they do

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    • I’m not quite sure who they would prefer, but F Gael Press Office would want to choose more wisely when they put one of their ‘mugs’ in front of the cameras. Anyone but this twit! I don’t like been called ‘special’ by teachers! There’s enough of that name calling when one is at school, we don’t need it as an adult, thank you very much!

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  • There was a question from a member of the public at this press briefing – Hayes not only didn’t answer it but slapped her down for daring to ask a question at a press conference – I’d love to see that bit aired

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  • Now you really don’t expect the government to discuss bending us over in public now do you…

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  • a more sustainable position on Ireland’s debt…..don’t like the sound of that…what we are seeking is a full and complete break from sovereign debt Mr. Hayes

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    • I’m afraid we are not seeking a complete break from sovereign debt. Kenny has already stated that he and his government plan to pay back ALL the debt. So that tells you Irelands starting point in these talks is…….

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    • @ Damien A – that’s the big question. Is the Irish government looking for debt reduction, complete are partial? We don’t actually know the specifics of what they’re looking for. What they’re looking for us not what they might get, but at least they could tell us what their target is.

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    • The kop 23/10/12 #

      Declan we did not play as a nation and lost…. private bondholders gambled..(manly German banks) and lost… this debt has nothing to do with the People of this nation

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    • From Hayes rethoric, it seems partial…not good enough…The letters from Trichot to the government on the night we signed the guarantee id say would make interesting reading

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    • The kop 23/10/12 #

      well if they have admitted that “the Bailout” was forced upon us… they now expect us to pay back something that we didnt want in the first place….The letters from Trichot to the government should be made Public….Noonan has if im right admitted that he has them…then let us see them… is it that they confirm what we all believe ..that this is all a farce

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    • Why should we the Irish taxpayers be held liable for foreign gamblers mainly German? Answer- because Merchel said so! She forced the FF led Government to bail out foreign speculators at the expense of the Irish taxpayers. FF should hang their heads in shame!

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  • These were done in private too:

    Banking guarantee scheme, bank recapitalisations, NAMA.

    Any chance of a referendum for these small issues that will affect generations of the nation?

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    • Excellent point Oliver….and ones I am hoping Enda is using to his advantage in discussions

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    • Exactly Oliver.
      And all 3 that you mentioned, were most likely designed by foreign beneficiaries and obediently cut and pasted by our ”fine leaders and protectors”.

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    • Absolutely Damien & Harry – these trojan horse tools for wealth extraction were inserted into the department and central bank using ignorant and unquestioning politicians and civil servants who could not see them for what they were. Peter Sutherland (Goldman Sachs) and Alan Aherne (US Fed)…what was their involvement in these policies?

      Reply
  • A good position to start from would be as Colm McCarthy describes take the ECB to court for operating outside its remit.Might put the wind up our “partners”if Paddy starts acting like he’s p***ed off.

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  • The face says it all.

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  • Brian as your boss said “Paddy wants to know”.

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  • Negotiate in private Hayes?
    Rubbish.
    Admit it.
    Your government has no negotiation skills or ability.

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  • So much for the openness and transparency promised by fine gael pre-election. Does anybody REALLY believe that theres a proper deal being negotiated on our debts while we’re obediently paying back everything and everyone elses debts for them??

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  • The kop 23/10/12 #

    ah the aul hush hush deal behind closed doors…. The Government should be open and fair like it promised and considering that it’s the People Of Ireland that are being made to repay All…and it will be ALL this debt….we should be told exactly what it is that Enda and co have asked for regarding clearing some if not all this debt from our country…The Big problem is they can’t tell us Because they have NOT ASKED for anything and that is the simple answer…all these press releases have one aim and that is to subdue us in to believing that we will get a “deal” all the while we are paying back Billions…. repayments should be stopped and this should be treated as if it were a massive credit card debt that can’t be paid back…force the EU to negotiate with us…. they have a hell of a lot more to lose…. It is time we played hard ball………….

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    • Another clown. I wouldn’t believe a word out of that mans mouth. As far as I can see, the bank debt deal was done back in June. Enda told us it would be all sorted by October. And now we’re expected to sit back and let negotiations take place in private. I have no confidence in any members of this Government. Their trying to buy time now. This was supposed to be a sweetener, in order to make the budget seem less painful!

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  • that way they can dupe all EU citizens equally.

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  • two things are certain;
    1. the deal will require every cent to be repaid over time.
    2. the governments priority is to secure euro commissioner jobs for themselves.

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  • G 23/10/12 #

    The main point here is that instead of actually being in negotiating a position and getting a resolution to Irish debt, Enda is running around the EU leaders asking for a pat on the back and to be told we are special. He got that god love him, but where does it leave us? Still up to our ears in debt and nowhere near a negotiating table. Weak, Weak Weak!!!!!!!!

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  • Ok, negotiate in private. But tell us first exactly what you’re aiming to get and what you realistically expect will be on the table. Then do the bargaining in private, but give us clear and accurate updates on the state of the negotiations. Focus on facts and not speculation. Isn’t that a compromise all sides could accept?

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    • Telling us what we are aiming to get and what we realistically expect to be on the table is the exact opposite of negotiating in private.

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    • @ Bob – not exactly. The argument for keeping negotiations private is that it’s as unhelpful as “backseat driving” if they have to make an announcement every half-hour about the current state of play. It’s unhelpful because it slows the process down to a crawl. A single daily or weekly announcement avoids that whole keeping the public in the loop. I’m just saying that 100% or 100% closed options are both unacceptable, but there doesn’t have to be only those two choices.

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    • Nikolas for it to work what you are saying you have to live in a democracy we the ordinary people live on our knees democracy is only an illusion in this country let alone justice

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    • Nikolas, the argument for keeping negotiations private is to not reveal your bottom line to the other side. They are called negotiations for a reason.

      It’s obvious that what we want is some sort of deal. It’s also obvious that there are two strands to this, the recapitalizations monies (which we will be very lucky to get a good deal on) and the promissory note (which we should get a good deal as it will not cost anyone anything except some principles). We do get information when there is some (e.g. proposed solutions for the promissory note).

      Dermot – I don’t know about you but I remember a free and fair election. I guess you are going to reply with something about bond holders not being burnt (was never promised).

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    • censored 23/10/12 #

      A pseudo intelligent argument if I ever saw one. Not all aspects of a negotiation need or should be conducted in private. The fact that they want to keep it all private is suspicious, and suggests they have no plan.

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  • I think TD’s need training on negotiations and politics etc. Govt is like a business but very few TD’s know how to run a business. Irish TD’s are cannon fodder in Europe.

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    • I’m afraid it would be a waste of money trying to train up these ex schoolteacher types Declan.
      It’s just not in them.
      and it never will be, unless you are talking about negotiating Tea breaks or days off.
      They lack the vision, motivation, intention, will, spirit, accountability, loyalty, honesty, capability, integrity, bravery etc etc etc

      How about using targets and Deputising proven negotiators from our private sector for the purpose,
      preferably people who are used to negotiating in the Billions.
      I’m sure many of them see obvious negotiation points and solutions for this mess.

      It couldn’t be any worse an idea than the government hiring Rothchild (a bondholder) to advise the government on whether or not it should pay the bondholders.

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    • Well, Harry
      When you find an article in today’s Journo about one Richy Bruton being a shareholder in CRH( major contractor for Israel’s apartheid wall)you don’t have to go all the way to Rot central for vested interests. For some reason the comment channel was closed early. Lets see how long this lasts(if).

      Ethical gnats.

      Reply
    • Send in Peter Mathews, Shane Ross and Stephen Donnelly…also I’d like Steve Keen (Australian economist) on team Ireland – maybe his grandmother was from Mayo?

      Reply
  • mike 23/10/12 #

    Enda negotiating position is this…. If we don’t get an acceptable bank deal by the next Irish election, the ANTI AUSTERITY parties will gain power here and reverse the austerity measures in place, while also renaging on paying any remaining bank debt. We won’t get a deal tomorrow but as long as the NO side keep shouting loudly there will be a deal in place before the next election.

    Reply
  • I think we should get a translation of the Icelandic national anthem into Irish and start singing it at them.

    It might have more effect than asking them questions their program managers have pre-programmed them to stone-wall.

    Lets face it, the Troika wrote the program decades ago.
    See under: Third World Debt-Traps Incorporated. Its beeen globalised. Thats what THEY mean by globalisation. We need a counterglobalisation, not another local shirt-change from FF green to FG blue with ‘Labour’(hahaha)pink collar and cuffs.

    Reply
  • mike 23/10/12 #

    When you play poker you don’t show the whole world your hand. This is especially true when you are bluffing and you ‘ve got nothing. But let’s not give up yet. Sometimes the bluff pays off.

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  • Isn’t it probably a huge part of the problem that the Irish economy, which essentially runs under an Anglo-Saxon model, is being judged and remanaged by people from (and advocates of) the Rhineland model? Square peg, round hole.

    Or is that horribly specious?

    Reply
  • Damocles 23/10/12 #

    He’s got a sort of a point.

    You don’t mail your tactics to your manager before your salary review.

    You don’t publish your battle plans in every major newspaper on the eve of the attack (although that has happened).

    You don’t publish a police raid before it happens (and so has that).

    Reply
    • But their strategy and tactics are as plain as the print on your screen.

      Beg from Angie baby, borrow from the speculating wuncha bankers built the sub-prime split-derivative bundled-slurry scam in the first place and ….

      ..where was I?..oh yeah. Beg , Borrow and Steal from the sick, old, disabled, excluded, disemployed motgage-hung, rack-rented working producers of the national wealth to repay the casino bandits in Wall St/Frankfurt/City of London and the golf club of your exclusive choice.

      Reply
    • Damocles 23/10/12 #

      “where was I?”

      That’s a very good question.

      Reply
    • censored 23/10/12 #

      Not really. The big secret is clearly that there is no negotiation. They’ve had long enough.

      Reply
  • Banana republic .

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    • I wouldn’t mind if some of those teachers were historically literate, beyond a Collins-worshipping simpleton’s understanding.

      We need people who understand ’29 and the Depression and cyclical war destructive/creative nature of the global economic system and its 21st century anachronistic redundancy.

      They can be found, but they are excluded.

      This crew are more like primary pupils with the conviction of professors. A dangerous combination. Bertie, with his fivepenny accounting cert was another. We won’t mention the Charlies.

      Reply
  • Why do all the armchair moaners need to know the nitty gritty of the negotiation?
    It is illogical that FG would disclose how they are going about negotiating the debt deal. No negotiator would blog their every tactical move in public, particularly a panEuropean one that moves at a snail’s pace.
    Joe Public needs to relax and let the government get on with it. You can get all the detail in Enda’s memoirs in 20 years time on how he saved Ireland. For now, you must be patient.
    It’s like a combination of kids in the back of the car asking ‘are we there yet’ every 5 minutes and Harry Enfield’s nosey pensioner ‘you don’t want to do it like that’

    Reply
  • Negotiate with what?. We don’t have a cent and beggars can’t be choosers. We played poker as a nation and gambled with money we didnt have. Now we are sending in a bunch of ex doctors and teachers to negotiate with skilled European politicians. I wonder who will win there. They might come out with what they think is a decent deal to be screwed in another way.

    Reply
  • one two one two this is just a test.

    http://www.youtube.com/watch?v=zrdu8v71Iv0&feature=related

    Reply

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