Brian Cowen (Laois-Offaly, Fianna Fail)

Nevertheless, the Government is absolutely committed to measures to build on this success.

One of the important messages of this budget is that Ireland is very much open for business. Despite the severe financial and economic difficulties emerging across the global economy, there is still a strong enterprise sector which is world-class in its capacity and performance. It is underpinned by the rapidly-evolving scientific, technological and innovation base that is at the heart of our enterprise policy. With access to a highly-skilled and flexible labour force, this enterprise economy is well placed for further growth and development. For that reason, it is essential that we maintain an attractive environment for overseas investment, especially in the more innovative and higher value-added sectors of the global economy.

With that in mind, I will be travelling to China next week as part of our overall efforts to sustain and develop new market opportunities for Ireland and Irish companies. China is increasingly becoming one of the most significant markets globally, and appears to be better positioned than many to see out the current economic difficulties. I will have a bilateral meeting with Chinese Prime Minister Wen Jiabao and I expect to discuss the continued development of bilateral relations between our two countries. I will lead a trade development mission of over 100 Irish companies, all of whom are expanding their trading opportunities in China. We will also be exploring opportunities for greater Chinese investment in Ireland.

Of equal importance to foreign direct investment is the stimulation of business start-ups and the expansion of indigenous enterprise. A particular priority is development which captures the full economic benefit of the knowledge and innovation created with the support of public investment in education and research and development.

In looking to the future, we can take confidence from the past. The basis of Ireland's past economic growth is also that which will fuel our future recovery, namely, the talent of our own people. Our people will always be the most critical ingredient in our performance. We have one of the youngest and best educated workforces in Europe. It is their ingenuity and creativity which will drive the next phase of Ireland's economic development. That is the Irish advantage, and we must never lose it. Building the stock of knowledge and know-how is critical. The budget's increased support for investment in research and development through the corporate tax system, as well as the incentives for companies in their early years to retain profits to invest in development, are strategically important. Combined with our commitment to the continuing rapid development of a competitive infrastructure, it is clear that the Government remains strongly pro-enterprise and that this is a pro-enterprise budget.

We will continue to consider measures to encourage further research and development, as well as innovation and commercialisation by private enterprise. This will enable Ireland to move up the value chain so that we assert ourselves not only as an open enterprise economy, but also an open entrepreneurial economy. This is a crucial basis for our future economic and social development. A great lesson from the last century of Irish history is that self-sufficiency and protectionism are outmoded economic ideologies. This country, as a small island, must face outwards. For our people to prosper, we need international markets, foreign investment and strong trading links.

It would be wrong of me, in the context of the current difficult economic times, not to mention my strongly held view that our prospects are absolutely interwoven with our membership of and participation in the European Union. Our membership of the euro has facilitated a diversification of trade, a reduction in the costs of business transactions, and a stable interest rate and currency environment. The European Central Bank is playing a vital role in supporting banks through measures such as the provision of credit and the recent interest rate reduction. On Sunday, the euro zone countries agreed on a comprehensive suite of measures to enable each of them to take action in a co-ordinated manner, but tailored to suit their specific circumstances.

I firmly believe that Ireland must remain at the heart of Europe. We advance our interests not by going solo, but by working with like-minded others on problems, challenges and opportunities that can only be dealt with effectively by working across national borders. Pooling our sovereignty with others is not the same as giving it away, but in any relationship of mutual interdependence, there must be give and take. We should not place ourselves in a position where our European partners view us as obstructing the progress they might wish to see for themselves, without properly assessing the consequences for us. Unfortunately, the result of our referendum on the Lisbon treaty has the potential to do just that. I will resolutely lead our efforts to address the concerns expressed during the referendum not just for Europe, but for Ireland within Europe. I am convinced that our economic and social well-being will be better served by such a resolution, especially in the troubled times in which we find ourselves.

We must learn from our past experiences during difficult economic times. The business of government is about making choices. I have great confidence in the wisdom of the Irish people to take the long-term view and understand why we have made the difficult choices that we have made. The alternatives were more unpalatable. The future prosperity of our people is the Government's primary concern. Ireland has a good economic future beyond the current difficulties. Our actions this week and in the coming weeks and months will provide the basis for Ireland's economic recovery from this recession. The Irish people have faced considerable adversity in the past and yet our creativity, ingenuity, patriotism and sense of purpose have delivered great success, and will deliver it again.

I wish to state clearly that the Government has chosen its course. No matter how difficult the decisions, we will not waiver from acting in the long-term interests of current and future generations. I believe that the budget presented by the Minister for Finance provides a clear policy direction, a set of specific measures, and a framework of principles to guide us in the period ahead. I ask the Irish people to stay the course, and with hard work and determination, we will get through these difficult times and onto a path towards economic recovery and renewal.

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