Leo Varadkar (Dublin West, Fine Gael)

I join other Members in congratulating Deputies Lee and Maureen O'Sullivan on their election to Dáil Éireann.

The Tánaiste forgot to mention in her contribution regarding our ranking in the "World Competitiveness Yearbook" that our overall position of 19th represents a fall from 12th since her appointment as Tánaiste and Minister for Enterprise, Trade and Employment. Perhaps she might interrupt her self-congratulations to explain why we have fallen so fast during her tenure.

This motion comes in the aftermath of the local and European elections. Irrespective of whether this House votes confidence in the Government, the people have sent a clear message that they lack such confidence. Never has a Government done so badly in local and European elections. This extraordinary failure is a sign from the people that they no longer have confidence in the ability of the parties opposite to govern.

For Fine Gael, these were excellent elections. For the first time since I was two years old, my party received more than 30% of the national vote. It increased its vote by more than any other party and this is the first time since its foundation that it received more first preference votes than Fianna Fáil. In a sea change in Irish politics, we now have 340 councillors, or almost as many as Fianna Fáil and Labour combined. The Labour Party did extremely well in the European elections in equalling Fianna Fáil in the number of candidates elected. Although Fine Gael lost one MEP, we increased our share of the vote and are now the only truly national party in terms of having one MEP in each of the four European Parliament constituencies.

Several of my colleagues had harsh words for the Green Party but I am sorry its Deputies are not here for my words because they are softer than might have been expected. All three of the Green Party's councillors in Fingal County Council, namely, David Healy, Robbie Kelly and Joe Corr, lost their seats. As someone who has worked with them on the council, I take no pleasure in seeing this and do not think they are to blame. Their losses in the election are related to their colleagues' participation in Government rather than their work on the ground. Unfortunately, politics is cruel.

These local elections were very different from previous ones. We are regularly told that all politics are local but in these elections all politics were national. I could not believe how few local issues were raised with me on the canvass nor how many people wanted to discuss national questions. Even in the last general election, to the extent that national issues arose they were manifestations of local issues, for example, when a school would be built. This election was very much about the economy, jobs and national questions. In that sense, the public has used the local and European elections to give a verdict on national issues.

The Government likes to put about the idea that every government in Europe took a beating at the polls, but that is not correct. In Italy, the People of Freedom Party increased its MEPS, as did the UMP, French President Sarkozy's party. Despite taking limited losses, Christian democratic parties in Germany, Holland, Belgium and Poland won their elections. The success of centre right governments across Europe in holding or increasing their seats belies the spin from Government circles that European governments in general are taking the hit.

Several speakers have referred to popular anger at the Government's decisions. People are not merely angry because of unpopular decisions. Above all, they are angry that nobody in Government has taken responsibility. Ministers are not responsible for all our economic problems but they are at least partly to blame for the fiscal and banking crises and the over reliance on the property sector. The failure of the Government, and the Taoiseach in particular, to accept any degree of personal responsibility for the mess we are in has fuelled that anger among the public. The time has come for the Taoiseach, who as Minister for Finance introduced an expansionary budget which increased borrowing and spending while decreasing taxes even though the credit crunch was already underway, to accept some responsibility.

The public is also angry because many of the decisions being taken by the Government are wrong. Its tax increases, banking strategy and undermining of competitiveness are all wrong. Further anger has erupted because of the Government's failure to communicate. The Taoiseach, and the Tánaiste to a lesser extent, do not even believe they have to explain to the public why these hard decisions have to be made. It is a case of my way or the highway and support me or I will scream. It is a big mistake to approach the public with entirely the wrong attitude. They appear almost irritated at the public for not understanding or being thankful for the cuts and taxes they imposed.

The Minister for the Environment, Heritage and Local Government, Deputy Gormley, asked whether the Opposition could do a better job. I believe we can. It is being insinuated that Fine Gael and the Labour Party will have to agree on everything in order to form a coherent Government. Fine Gael and Labour are different parties. We broadly share the same objectives even if we differ on how we should reach them. Any Government that emerges from a general election will be a coalition of parties. It certainly will not comprise the present Government coalition. If Fine Gael does well enough, we may lead a Government with the support of a smaller party. Alternatively, it might involve a coalition of Fine Gael and Labour or even Fianna Fáil and Labour. The comments made by Deputy Burton on RTE last night reveal this is on the mind of Labour Party Members. Parties will be required to put their proposals to the people and to seek their mandate. Fine Gael will be asking people to vote for our plans and not for a coalition arrangement. We have already put forward our views on the fiscal crisis and that it should be addressed by reducing Government spending by 4% annually rather than through tax increases, which this Government proposes, or borrowing, which is the Labour Party solution and which essentially means sending the bill to our children and grandchildren.

In regard to the banking crisis, we have been clear that a new bank should be established with Government capital and ECB funding and that the hit should be borne by the existing banks and the owners of subordinated debt and bondholders who have taken this risk. This would minimise the risk to the taxpayer while freeing up credit to businesses and home buyers more quickly than the alternatives. Those who advocate nationalisation only need to observe the lack of success in nationalising Anglo Irish Bank, which has not lent any money in the past six months despite already costing us €7 billion. That is certainly not the solution. NAMA will lead to the inevitable nationalisation of Allied Irish Banks and possibly Bank of Ireland.

We have put forward plans on employment, supporting businesses, competitiveness and health care. Unlike other parties, we are not committed to the HSE and its bureaucracy because we want an entirely new system for funding health care. Through NewERA, we have also made proposals on how we will fund infrastructure.

One of the major issues that will confront all of us is the Lisbon treaty. It is important that the Irish people ratify the treaty and the best chance of ensuring this is by electing a new Government. When the referendum is held in October or November, I fear it will again be voted on having regard to this Government's performance. If that is the case, the referendum will be defeated. The longer this Government and Taoiseach remains in office, the fewer the chances of passing the treaty.

I support much of what the Green Party is doing in Government, including its work on sustainable development. I support some of the efforts the Minister for the Environment, Heritage and Local Government, Deputy Gormley, is making to change the planning laws but not all of them. I support the efforts the Minister for Communications, Energy and Natural Resources, Deputy Ryan, is making to achieve energy independence. I recognise that there has been willingness on the part of the Green Party to take hard decisions and to be a party of Government. By and large, it also changed its position on the European Union with regard to the Lisbon treaty. However, other things could be done but are not. I believe the Green Party would like to develop such things as real local government reform and transfer power to democratically elected councillors. I believe they would like to change the way we fund politics by ending corporate and trade union fundraising for political parties, change the way we make public appointments, on which the Minister, Deputy Ryan, has taken action in the Broadcasting Bill 2008, and re-embrace our commitment to overseas development aid. I honestly believe the Green Party in Government would support these measures, which is why I ask its Members to consider their position in Government and to consider the possibility of forming a new one after a general election with a different lead party.

We face an economic challenge of enormous proportions to fix the banks and restore competitiveness; we face a budgetary and reputational crisis; we need to get the Lisbon treaty passed prior to the end of the year and we need to reform our public services. To do these we need a new Government with a new team, a new Taoiseach and a five-year mandate. This is why I oppose this motion and why I hope the general election will come sooner rather than later.

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