Fianna Fáil leader Micheal Martin called on the Taoiseach to remind EU leaders that Ireland had voted in the Lisbon treaty referendum to retain the corporation tax rate.
Describing as a “fantastic try-on” EU attempts to persuade Ireland to change its tax rate, he said “we negotiated a protocol to be attached to the second Lisbon referendum proposal which was put to the people,” he said.
"We should reject attempts to exploit the situation. EU leaders should be left in no doubt that it is a deeply held view. It is unfortunate that these two issues have been joined together," Mr Martin said.
Enda Kenny told him that the EU attempts “may well have been a classic try-on but the point was made perfectly clear at the meeting in Brussels that these issues are separate issues”.
"I am going to US this evening and will reassure business people about our corporate tax rate." Mr Kenny said he would support a cross-party statement on the matter.
The Taoiseach also said the corporation tax rate and the interest rate on the IMF-EU deal were entirely different issues.
Asked by Mr Martin if he agreed with comments by Minister of State Brian Hayes that a move to burn the bondholders would be “crazy”, Mr Kenny said that “irrespective of changed views from Europe it is grossly unfair to expect the Irish taxpayer to fork out 100 per cent for the cause of reckless banking, which culminated in an agreement by your own government which has brought this about”.
Asked by Sinn Féin president Gerry Adams if he was prepared to have a referendum on the bailout, Mr Kenny said that a clear mandate had been given to the Government in the general election to improve the terms involved.
“And that is what our entire focus is going to be,” he added. Socialist Party TD Joe Higgins accused the Government of being guilty of a “monumental betrayal” of its promise of honesty.
The programme for government had promised burden sharing and that the gambling bondholders in the Irish banks would carry at least some of the massive losses they incurred.
Mr Kenny said taxpayers had taken a huge hit arising from a situation brought about by the previous government. He said no further money should go into banks beyond what was already committed without some responsibility or sharing by those involved.
He added that “if the European Union is to mean anything to its people it’s that the European leaders keep their word and their word is their bond. And I would ask you to remind President Sarkozy and Chancellor Merkel of that.”
Mr Kenny and opposition leaders began the session by expressing their sympathies with the Japanese people after last Friday's devastating earthquake and tsunami.
Fianna Fáil leader Micheál Martin offered his assistance to the Department of Foreign Affairs in helping Irish citizens in Japan.
Mr Adams said there had been two earthquakes recently in Britain, one in Cumbria near the Sellafield nuclear plant. He asked Mr Kenny whether he would raise the matter with the British authorities?
He said the universal social charge was causing "misery" and asked whether Mr Kenny would allow a referendum on the matter?
Mr Kenny said he would raise the incident in Cumbria and said the Government had agreed to a review of the universal social charge before the next budget, especially for people on lower incomes.
He added that a referendum had already been held in the form of the General Election in which a clear mandate was given.
"No further monies will be put into the banks until we see how this responsibility can be shared. It is grossly unfair to expect Irish taxpayers to pay for the full cost of reckless banking. It is causing a serious problem for people," he said.
The United Left Alliance's Joe Higgins said the Government was already guilty of the monumental betrayal of its policy of honesty.
"You promised burden sharing. Instead the economic lifeblood of our country is being drained to pay for gambling debt. Before the election, Labour was rolling up the tanks to target Frankfurt. Now these tanks won’t go further than the local social welfare office to shake down the unemployed and the poor," he said.
Mr Kenny said he had always held the view that it was unfair for the taxpayer to pay for the consequences of reckless banking
"The economic burden is very severe. No further monies will go into the banks without some sharing. My focus is on getting an improvement in the terms of this deal."