Kenny says State will meet troika's targets

TAOISEACH ENDA Kenny has said he is confident that the latest assessment of the Government’s implementation of the bailout package will have a positive outcome.

Officials from the European Commission, European Central Bank and the International Monetary Fund arrive in Dublin today to begin a 10-day review of Ireland’s economic performance during the last quarter of 2011, as well as an evaluation of how the Government has met the conditions laid out in the memorandum of understanding.

Both Mr Kenny and the Department of Finance said yesterday that with the €3.8 billion budget adjustment having been implemented and Ireland having comfortably met the fiscal targets laid down for 2011 as a whole, they expected the outcome of the exercise to be successful.

“I expect Ireland will again measure up,” said Mr Kenny during a visit to the Allergen facility in Westport, Co Mayo, yesterday.

Government officials said yesterday they expected that the review would be dominated not by discussion on last quarter’s targets but by talks on the disposal of State assets, bank restructuring, as well as labour activation programmes for welfare recipients.

The programme for government has committed both Coalition partners to dispose of no more than €2 billion of State-owned companies and assets during the lifetime of the Government. The programme stipulates that the funds raised be directed towards jobs stimulus programmes.

However, the memorandum agreed between the troika and the previous government stated that the asset disposal programme should be “ambitious” and that the money be used for debt reduction. While no figure was stated formally, it is understood that the IMF has suggested a figure of some €5 billion.

It is understood the Government may be agreeable to increasing the €2 billion threshold for disposal, but only if some of the money can be used as part of a job stimulus programme.

Minister for Public Expenditure Brendan Howlin had discussions with officials from the EU and IMF about this issue before the Christmas break.

Another condition that had to be fulfilled before December 31st was a document suggesting means to better target social support expenditure.

The memorandum requires a comprehensive programme of reforms to target social support to those on lower income and to “ensure that work pays for welfare recipients”.

Minister for Social Protection Joan Burton will launch the long-awaited Pathways to Work initiative this month, which will address some of those issues. It is understood there are some differences of view between the troika and Ministers on this issue.