Noonan to meet IMF officials in New York

FINANCE Minister Michael Noonan will meet International Monetary Fund (IMF) officials in Washington this week as part of the ongoing review of the bailout programme.

It comes as Tánaiste Eamon Gilmore insisted that a reduction in the interest rate being charged by the European Union on the bailout loans was still possible.

Mr Noonan last week said the value of such a reduction was being overestimated and that he wouldn’t yield to French demands to hike Ireland’s corporation tax rate in return for a cut.

But behind the scenes, the Government remains anxious to secure the rate cut so that it can claim it is fulfilling its election promise to “renegotiate” the bailout.

Speaking in Tanzania, where he is reviewing Irish Aid projects, Mr Gilmore said the campaign for a rate cut would continue.

It was “not fair or sustainable” for the EU to refuse a cut to Ireland when the country was meeting all the terms and conditions of the bailout, he said.

Mr Noonan will discuss the issue in Washington with IMF officials, who are supportive of a rate cut.

He began his US trip last night in New York, where he met potential investors and officials from the Stock Exchange.

Enterprise Minister Richard Bruton is also in the US this week to tell Silicon Valley that Ireland is “open for business”.

Mr Bruton is leading a week-long trade and investment mission to the west coast, where he will meet a number of corporations.

He said he would be telling potential investors that Ireland’s corporate tax rate would remain unchanged.

Meanwhile, Agriculture Minister Simon Coveney confirmed yesterday that the Government intended to proceed with the NewEra programme.

Mr Coveney was the key author of the stimulus plan, which Fine Gael promoted heavily during the election campaign and which envisaged billions of euro in infrastructural investment to create up to 100,000 jobs.

It was reported in The Sunday Times that the Government intended to use the last €5 billion in the National Pension Reserve Fund to bankroll the NewEra plan.

Mr Coveney said the Government intended to proceed with NewEra, but indicated that it would be in phases.

“Certain elements of it are quite straightforward, while others are more complex,” he said of the plan to invest in “next generation” energy, broadband, forestry and water infrastructure.

The Government would look to move forward quickly with the water element of the plan, which envisages a new state water company to take responsibility for infrastructure maintenance and metering.

The Government would also be able to move quickly on improving broadband and telecommunications networks, Mr Coveney indicated.

But he said the energy section of the plan would take more time due to ongoing discussions over the possible sale of state assets, including elements of the ESB.