Batt O'Keeffe (Cork North West, Fianna Fail)

The political background to this motion is the outcome of last week's local, European and by-elections, which the Taoiseach acknowledged today produced poor results by Fianna Fáil's standards. It was an especially difficult campaign because we found ourselves in very difficult economic circumstances and the Government has had to take very tough decisions.

People are clearly angry about their changed circumstances. Everyone is paying more taxes than they were last year, many people have taken pay cuts and, worse still, thousands of jobs have been lost. The people have spoken and we will reflect on how we will address the concerns expressed during the campaigns. However, at the outset, I want to deal head-on with the Opposition's suggestion that the Government has no mandate as a result of the local and European elections and the by-elections. I do not accept that. The very suggestion is cynical and disingenuous and it shows scant regard for constitutional proprieties and the democratic traditions of this House.

All of us cherish free speech and open and transparent democracy but we should also respect the rules and systems that give us these freedoms and not seek to misuse them or misinterpret them for political gain. Under our Constitution, the Government is elected by Dáil Éireann. It is not elected by county councils or members of the European Parliament. This Government has the same mandate that every other Government had in the history of the State - the support of the majority of Deputies in Dáil Éireann.

As long as this Government maintains the support of the majority of this House - and I am confident we will when the vote on this motion takes place - we have a legitimate constitutional mandate to govern. Anyone who denies that is in conflict with provisions of Bunreacht na hÉireann is out of step, but Fine Gael and the Labour Party know that. They know the Taoiseach's mandate is precisely the same as John Bruton's was in the rainbow Government in which Deputies Enda Kenny and Eamon Gilmore served.

No one can deny the Opposition their performances in last week's elections but they would do well to remember that in Britain William Hague, Ian Duncan Smith and Michael Howard each defeated Tony Blair in local elections and announced their impending national victory. Not one of them went so far as to buy shoes for a visit to Buckingham Palace. In Ireland, governments of all types have suffered defeat in local elections over the past 40 years. Incumbent Governments suffered bad results in local elections in 2004, 1991 and 1985 yet there was no general election as a result.

We must always remember that our duty in this House is to serve the people and their needs, not our parties and their ambitions. As an small open economy, Ireland is being hit hard by the global economic downturn and, as a society, we are finding the severe adjustment in living standards and employment prospects very difficult to accept. I acknowledge that what has been hit are not just wage packets or tax revenues; our national self-confidence has been shaken too. It is in the context of this national economic struggle that we debate this motion here this evening.

As families deal with the human toll of recession, the Government is taking decisive - though admittedly unpopular - steps to lead our nation out of severe economic difficulty. The Government is spearheading an economic response that has been unmatched in its breadth, speed and force. Our steps to tackle the worsening global financial and economic crisis have been measured and well planned. These include the €1 billion package of savings and efficiencies announced last July; the budget last October that arrested the growth in public service spending and imposed a discipline across all areas of expenditure; the series of emergency measures, including the public service pension levy in February; and the supplementary budget in April. The cumulative effect of these various rounds of expenditure measures has been an overall saving of at least €4.3 billion this year or 3% of GNP. Without these measures, the deficit would have been as high as 15% as against 10.75% of GDP. No other country in Europe has achieved this level of adjustment.

The Government has moved to protect systemically-relevant institutions and the stability of the Irish financial system while at the same time being conscious of the need to protect taxpayers. We have taken a decisive and measured approach to issues facing the financial sector. This approach included the guarantee on deposits up to next September; the recapitalisation programme for Allied Irish Banks and Bank of Ireland and the commitment to look at the needs of other institutions; the nationalisation of Anglo Irish Bank; the proposal to put in place a State guarantee for the future issuance of debt securities with a maturity of up to five years; the review and reform of the structures, role and functioning of the Financial Regulator and the relationship with the Central Bank in light of the current situation; and the announcement of the decision to establish a National Asset Management Agency.

Our sole objective in all the actions we have taken is to ensure that householders can access credit for home loans and consumer spending; that small and medium-sized businesses can fund their enterprises; that deposit-holders have confidence that their money is secure and protected; and that international investors are satisfied about the stability of our banking system. As the economic situation constantly shifts across the globe, we must retain flexibility so that our response can be adapted to fit developments.

It is telling that the Government's approach has been endorsed in recent weeks by Jean-Claude Juncker, the head of the eurozone Finance Ministers, who stated that Ireland is "making some very brave efforts" to address our economic challenges. Mr. Juncker and Commissioner Almunia stated the April supplementary budget was the correct approach to our economic and fiscal difficulties. The latest ESRI survey showed that Ireland is on track for a sustained economic recovery in the coming years if we stay the course the Government is taking. The International Monetary Fund has stated that Europe could turn the corner next year if we continue to take the right decisions and, in the words on one economic commentator we are moving from rescuing the economy to recovery.

Now is not the time to turn back. The Government's task is not easy and the necessity to take severe corrective action is impacting on public services and on people's take-home pay. However, there is no other way. There is no alternative to taking tough short-term decisions if we are to position this country for economic growth in the long term. We took these tough decisions mindful of the near-term political consequences but at the same time acutely conscious of our responsibilities to our country and to future generations of Irish people. If the price of short-term unpopularity is Ireland's future and our return to growth, it is a price worth paying.

In the power vacuum of Opposition politics, it would seem that such tough decisions are not necessary. For instance, Deputy Kenny and Deputy Gilmore do not operate according to the real life figures of Exchequer returns but it seems the temptation to sound out the political polemic is irresistible in that whatever our nation's economic problems, and there are many, it is more important to the Opposition to embrace the grubby partisanship of self-serving politics rather than seek to fight for the common good. If party is more important than country at this critical time for our nation, then the Opposition parties' words in this debate reduces genuine public service to a cheap commodity traded in the interest of boosting poll numbers.

The Opposition's motion has nothing to do with getting people back to work or with saving faltering businesses. It has nothing to do with closing the Exchequer deficit or inspiring public confidence but it has everything to do with courting populist plaudits with one eye on the next opinion poll rather than the next generation.

The job of the Opposition is not just to oppose. Rather, it is to oppose responsibly. This Government has a mandate that runs until 2012 and we're committed to leading this country out of the international recession.

See this speech in context