UK Bailout 'Not Ruled Out' For Irish

During a two and a half hour Question Time at Westminster, the Prime Minister refused to ruled out a UK bailout for debt-ridden Ireland.

David Cameron is facing questions from senior MPs about the Spending Review, Strategic Defence and Security Review (SDSR), as well as the economic situation in Ireland.

When questioned regarding a UK Government intervention, he said: "I do not think it would be right to speculate about the financial health of another country, a close neighbour, a friend, and a country we have very close political relations with.

"Looking at the relation between Britain and Ireland, it is one of our largest export markets.

"We export more to Ireland than we do to Brazil, Russia and China combined.

"We have got an interest. I do not want to rule anything out."

Ireland are hoping to be kept afloat through a rescue package, worth tens of billions, from the International Monetary Fund-European Union.

When asked about his role in the SDSR, the Prime Minister said he was heavily involved, not just as chairman of the National Security Council. He said the chiefs of the Armed Forces always had a direct line to him. However, he admitted there had been disagreement between the Treasury and the Ministry of Defence over the review.

He said: "There was a gap between the Treasury and the Minister of Defence, I do not think I am breaking any confidence, and I helped to bring together both parties in the end to get what was a sensible outcome.”

When questioned about a leaked letter, which he received from Liam Fox, Defence Secretary, warning of "grave consequences" of severe cuts, Mr Cameron said: "Sometimes ministers offer their views orally, sometimes they write and occasionally, regrettably, it appears in the papers.

He added: "This department does seem to have a problem with leaks, but I do not think it made a real difference to what I think was a very good outcome."

Regarding the last minute decision to withdraw the Harrier fleet and the Ark Royal from service,

and the letter by the heads of Britain's armed forces, published by the Ministry of Defence, defending the move, he said: "I've read both letters and I'm delighted they wrote such a powerful letter in defence of the decision be made, but I don't know the details of how the letter came into being into being."

When asked if No. 10 had any role? he replied "I don't know”.

When further pressed Mr Cameron said: "I would rather deal with the substance of the issue, who writes what letter it is less important."

The Commons Select Committees, chaired by Sir Alan Beith, led the question time session.

See: Ireland's Corporation Tax 'Non-Negotiable'

(BMcN/GK)