Joe Costello (Dublin Central, Labour) | Oireachtas source

From the moment Sinn Féin and others agreed to give a blanket guarantee to Anglo Irish Bank's €34 billion debt, Ireland was committed, effectively, to a special bailout deal with the troika, and that was negotiated by Fianna Fáil with the European Central Bank, the International Monetary Fund and the European Union Commission. It was agreed from 2010 to 2015 but we managed to exit the programme more quickly due to the good economic methodology and so on used by this Government.

With respect to the spring statement, during that period we were excluded from the normal European Union budgetary process because we were within our bailout system. We could not avail of what we had voted for in 2012, the fiscal stability treatment. All this provides for the first time for the member states to engage in a process of consultation. There is a European Semester, with every country doing a spring statement outlining budgetary principles, parameters and policies for discussion with a view to ensuring that the terms of the growth and stability pact are adhered to by all member states, so as not to have the blow-outs we have seen in various economies in the past. The spring statement is proof that Ireland's economy has been stabilised and has returned to normality from being the sick economy of Europe under Fianna Fáil and the Green Party.

The news is positive for the future. Ireland is the fastest growing economy in the EU, with 4% estimated growth in 2015. Unemployment has been reduced by a third from 15.1% in 2012 to 10% in 2015. There will be €1.2 billion to €1.5 billion available in the autumn budget, to be divided 50:50 between tax reductions to reward work for low and medium earners and spending increases to invest in our public services. A multi-year budgetary process will be put in place in October 2015. The Minister for Public Expenditure and Reform, Deputy Howlin, will publish a new capital investment plan in June this year which again will allow further debate prior to the budget. The Minister, Deputy Howlin, will shortly begin discussions with the public service committee of congress to restore in a sustainable way the 14% or €2.2 billion reduction in pay that was taken through the financial emergency legislation. The public sector sacrificed much in the interests of the national economy in the past number of years, and it is extremely important to recognise that the majority of public servants are low-paid. They deserve to benefit from the recovery as quickly as possible.

In July, again before the budget comes about, there will be further public consultation with civil society groups, a national economic dialogue to facilitate a transparent and inclusive debate about the challenges faced and the spending options we should prioritise. For the first time in the history of this country, there is a formal structure in place for all stakeholders and public representatives to engage in the budgetary process. It will be the norm for the future and it will be a multi-annual process. Political parties will no longer be able to trot out vast swathes of expenditure willy-nilly and they must come within the €1.2 billion to €1.5 billion expenditure parameters agreed with the European Union. Proposals must be costed and any that would increase expenditure must be matched with funding commensurate with the proposals.

With the spring statement being the norm from now on, the process should be welcomed by all instead of being derided by certain sections of the Opposition and the media. The citizenry of the country will find it most beneficial and it will put an end once and for all to the multi-billion euro uncosted proposals from the Opposition seeking to delude the public. It will also put an end to the secrecy surrounding that most important date in the Dáil calendar, budget day. We are setting the process in train, which is welcome, and I strongly recommend the spring economic statement before us.

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