NO ONE in the Government was terrified of asking any international leader direct questions, Taoiseach Enda Kenny insisted.

“I have contact with them when appropriate at council meetings,” he said.

Mr Kenny was replying to Socialist Party TD Joe Higgins, who said ordinary Irish taxpayers found it incredible that the Taoiseach refused to ask leaders, to whom he had high-level access, to apply “a humane interest rate” to Ireland’s bailout.

Instead, said Mr Higgins, there was incredible profiteering on the misery of the Irish people to the tune of €9 billion because of over-the-odds interest rates.

Mr Kenny said it was a case of making leaders directly aware that Ireland was measuring up in meeting the bailout conditions. They would also be made aware of the developments in the economy, particularly relating to the balance of trade surplus, the growth in exports, the flexibility of our workforce and the stimulus provided for the indigenous economy to grow.

“These are all reasons people should continue to have confidence in the country,” Mr Kenny said. “We will continue the discussions, with particular reference to France, in respect of the reduction of the interest rate.”

Mr Higgins said the British loans were separate from other EU loans. “Even if the Taoiseach used the excuse that some EU countries are tagging together and he requires everyone’s agreement, the Taoiseach does not need it with regard to the loans provided by Britain.”

He asked why Mr Kenny had not asked the British government to cut the interest rate bearing in mind “the crushing burden that is on our people to meet the gambling debts of European bankers”.

Fianna Fáil leader Micheál Martin said there had been a failure at a recent British-Irish Council meeting to make a submission to the British government that Ireland was seeking the terms and conditions applying to the bilateral loan reduced in accordance with a decision of the EU heads of state in March.

Mr Kenny said Mr Martin was under a serious delusion if he thought the hard questions would not be, or were not being, asked.

The Taoiseach told Mr Higgins that he had raised the issue of vulnerable communities in the North with British deputy prime minister Nick Clegg at the council meeting.

He had made him aware that the Government sought to work with the British government and members of the Northern Assembly and Executive on the issue of the vulnerability of communities, especially where there were continued efforts to thwart the peace process.