Cabinet memo on €750bn fund

A MEMO on the €750 billion EU/IMF loan guarantee scheme for weakened euro zone member countries will be brought to Cabinet by Minister for Finance Brian Lenihan today.

Mr Lenihan will tell fellow Ministers he may require endorsement for domestic legislation on the financial stabilisation mechanism to enable Ireland to be part of the rescue fund if called upon.

The initiative, following the €110 billion package for Greece, consists of €440 billion in guarantees from euro states and €60 billion in a European stabilisation fund that could be disbursed to help states if needed on strict austerity conditions. The IMF would contribute up to €250 billion.

Separately, Minister for Energy Eamon Ryan will present the Carbon Windfall Bill to Cabinet colleagues, which will impose a new levy on electricity generators. He recently announced Government intended to tax the profits earned by power companies on free carbon credits.

He wanted to include the tax as an amendment to proposed legislation aimed at promoting the use of biofuels, the Biofuels Obligation Bill, which is currently progressing through the Oireachtas.

However, this was deemed inappropriate as the windfall charge is a revenue-raising measure and Mr Ryan now intends to introduce the new levy in separate legislation.

Meanwhile, Fine Gael’s Private Members’ business proposing that byelections be held within six months of vacancies occurring will also be discussed.

The party will tonight propose an amendment to the Electoral Act 1992, which contains no time limit within which a byelection should be held following the resignation or death of a sitting deputy. Donegal South West, Dublin South and Waterford all remain without a TD.

Fine Gael has offered 10 minutes of speaking time to Independent deputy Maureen O’Sullivan, who had proposed a similar Bill requiring byelections take place “no sooner than three months and no later than six months” after vacancies in constituencies occur. Ms O’Sullivan’s proposed legislation was backed by former Fianna Fáil TD Joe Behan and Independent Finian McGrath.