Darragh O'Brien (Dublin North, Fianna Fail)

I am genuinely glad Deputy Sherlock asked the House to be constructive and I welcome that. However, I would further welcome if his party took the opportunity to do that in the coming weeks and I hope we can take constructive decisions in this House for the good of the country.

I am pleased to be given the opportunity to speak in support of the Government's counter-motion. I commend the Minister for Finance and his Department for the tireless work they undertook in recent months in these very difficult economic times. The Government has been consistent and decisive in taking measures to protect this country's economy. Since the effects of the global economic crisis were beginning to be felt last year, it has taken decisive action. We needed to cut Government spending and last July measures to save 3% were announced, acted upon quickly and achieved in 2008.

As the global crisis worsened and when banks across Europe were falling like skittles and queues of depositors formed outside banks across Britain and the United States, this Government acted and brought in the bank guarantee scheme which guaranteed deposits in six financial institutions in Ireland. The scheme did not come free and all institutions concerned will have to pay for it over the two-year term which should net the taxpayer up to €0.5 billion. The scheme protected normal savers and, just as importantly, the 250,000 people working in the financial services industry. We were the first in Europe to act and many other countries followed.

In fairness to Fine Gael, it supported the Government initiative. What did the Labour Party do? As always it voted "No". The international crisis continues to change day by day. When other challenges were faced by Government regarding corporate governance in Anglo Irish Bank, we moved decisively but in a measured way. The State took the difficult decision to nationalise Anglo Irish Bank and that decision was taken only after detailed due diligence was carried out by two independent financial bodies.

As I said last week in another debate in this House, I want to put to bed the utter nonsense that is being peddled by certain Members of the Opposition that the Government is simply bailing out the banks. I remind them that without a stable financial system the ripple effect on the rest of the economy would result in a wave of job losses and a worsening economic situation. Without a viable and robust banking sector all other areas of the economy are under threat. The Government has not been engaged in a bail-out of the banks or bankers but in the protection of jobs and the very basis for this country to trade nationally and internally.

Fine Gael and the Labour Party wanted to shut down Anglo Irish Bank. I asked them what would have happened in the international markets if an Irish bank defaulted on its international bond commitments. The fact there now appears to be international interest in purchasing the bank further shows the correct decision was made. When it became necessary to recapitalise AIB and Bank of Ireland it was done in the interests of the country as a whole and provided a guaranteed 8% return on investment for the taxpayer. The scheme will also facilitate increased access to funds for small and medium businesses and first-time buyers.

The figures announced yesterday clearly show that the Government needs to take action once again in the interest of the State. Measures already introduced by Government, such as additional taxes and savings, have raised €5 billion towards bridging the budget deficit. It is clear, based on Exchequer returns, that further measures are needed to ensure we remain within the 9.5% of GDP as agreed with the European Commission as part of our plan for stabilisation of the public finances. It is only right and proper this is done in the interests of the country.

I know the decisions are tough and are not all welcomed by the public, but in time people will see necessary decisions have been taken to ensure our future prosperity. The Government will continue to work on areas where we can stimulate growth, protect the more than 1.8 million people at work and ensure our policies on tax and savings are fair and balanced. It will not shirk its responsibility to its citizens. People will recognise that these decisions, while difficult, have been taken for the good of the country as a whole and for future generations. This country will come through this crisis, of that I am certain. As the Taoiseach said last week, the common good must be everyone's priority.

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