John Gerard Hanafin (Fianna Fail)

I note the wording of the motion, "That Seanad Éireann, recognising that Ireland is crippled by a lack of confidence, lack of confidence among consumers; lack of confidence among investors in our banks; lack of confidence in the Government; calls on the Government, as a step towards restoring confidence, to demonstrate its seriousness about rooting out corruption, corporate sleaze and crony capitalism by introducing a series of measures, including legislation".

The first thing the speaker opposite suggested is that we accept that innocuous motion, which of course is patently unacceptable. The salient points in the motion refer to the need "to regulate the practice of political lobbying; to develop a system for whistleblowers' protection; to ensure good corporate governance." I have some good news for the Labour Party on those first three points, which is that they are being comprehensively dealt with by the Government. The recently published Finance Bill will help to ensure the progressive implementation of any adjustments needed in the economy and to provide for a proportionate sharing of the burden of this adjustment. There is a commitment in the programme for Government to regulate political lobbying and many initiatives have been taken in Departments to extend whistleblowing protection.

A substantial body of company law exists to provide for good corporate governance under the Companies Acts 1963 to 2006 and the work of the Office of the Director of Corporate Enforcement must also be taken into account. In addition, we should recognise the work of the company law review group in producing proposals for the major reform and consolidation of the 13 Companies Acts, resulting early next year in the publication of significant legislation of 1,250 sections. That Bill will be in the House shortly.

The Companies (Amendment) Bill 2009 will provide for enhanced powers for the Director of Corporate Enforcement in his efforts to ensure compliance with the company law code and to improve the transparency of loans made by companies that are licensed banks to their directors and to persons connected with them. We also note the continued operation of the freedom of information legislation. The fourth point in the Labour Party motion was to restore the original provisions of the Freedom of Information Act 1997, which were causing unnecessary burdens and had to be altered.

Since the Government came to office we have introduced codes of practice and legislation, including the Standards in Public Office Act 2001 that established the Standards in Public Office Commission and the Prevention of Corruption (Amendment) Act 2001, which provided for the presumption of corruption in certain areas, the Local Government Act 2001, which modernised local government law, the Proceeds of Crime (Amendment) Act 2005, and the Ethics in Public Office Act 2007. It is clear that the Government has worked strongly to promote openness, transparency and good government.

The necessary work that had to be undertaken by the Government was not at all times supported by the Opposition. I refer in particular to the nationalisation of Anglo Irish Bank, a bank of systemic importance to the Irish economy. I note that an Opposition spokesperson referred to the nationalisation of the bank as an attempt to bail out the friends of Fianna Fáil. In political terms that is not correct. In economic terms it was extremely damaging to this country abroad. At this time of economic uncertainty, comments such as that were bound to lead to repercussions, and that was the case.

We also had difficulty underpinning the banks, as if anyone would wish to extend €7 billion to the banks for any other purpose than to save those banks and to provide sufficient liquidity for business so that they might survive, rather than the many other deserving areas we were unable to support with the limited means at our disposal. We had to ensure that we had a financial system and economy. If one has no economy, there is no support for the necessary social welfare we upheld and maintained at the most difficult time in this country.

According to international trends, it appears that we have taken the right approach. We were in a good position, despite the Opposition questions about what we did with the boom. At that time 2 million people were at work. We set up the National Treasury Management Agency, which had a deposit of €19 billion. We had the lowest tax wedge in the OECD. We ensured that we catered for the less well-off. When the bad times came we were able to increase borrowing because if we had not done so, we would have had an economy that was in crisis rather than one that was being managed.

The world economy is looking forward to coming out of recession in 2010. Long-term low interest rates are having a strong effect. The quantitative easing taking place in the UK and the US are also having an effect. The expectation is that we will start to see the recovery in 2011. Every day that goes by where people lose jobs or are out of work is very serious. With that in mind, I hope we have an opportunity in this House to debate some of the positive things that are happening.

In spite of the fact that 400 people will be let go over time, there are positive signs at the Dublin Airport Authority for the construction of a second terminal and the development of Dublin Airport city, which is as novel, as innovative and as forward thinking as the IFSC was in its day. It will attract the type of industry and headquarters to Ireland and to Dublin that we want. The metro will allow for a huge increase in numbers of up to 30 million passengers to pass through Dublin Airport. There are positive signs and good things towards which we can look forward. This economy has been well managed. This Government was prepared to take the pain and was prepared to take the unpalatable decisions. We had an Opposition that was prepared to say "No" to the removal of medical cards from people who were earning €70,000 per annum in pension entitlements - meaning they were earning €100,000 while working - but this was unaffordable. The Government dealt with a very progressive and fair tax system and did so with an eye to what is best for Ireland, rather than what is best for the political party. That what this Government has done and will continue to do.