Brian Cowen (Laois-Offaly, Fianna Fail)

I move:

That Dáil Éireann has confidence in the Taoiseach and the Government.

Inviting the Dáil to vote confidence in a Taoiseach and his Government is to invite them to reaffirm the mandate given by Dáil Éireann when a Taoiseach is elected to lead the executive authority of the State to discharge its duties in the interests of the people. Confidence is, therefore, about confirming that it is right that a Government should continue to serve the people because it has the capacity and determination to do what is required to address the challenges that lie ahead.

These are formidable challenges. I will speak about the measures which we are pursuing to secure financial stability and accelerate economic recovery but the truth is that we are operating at a period of grave challenge for our currency, for Europe and for the global economic system. It is a time when the capacity to sustain confidence abroad is just as important as the ability to deliver the correct policies at home. This Government has demonstrated its capacity to do both, as affirmed by fair-minded observers at home and abroad. The task is far from complete but the direction is set and the goal is clear. The journey is daunting but the will and capacity to succeed, whatever the ultimate political consequences, are unshaken.

Confidence is about the challenges of today and tomorrow. That is not to ignore issues that derive from the past. This Government, and I personally, do not seek to diminish or equivocate about our responsibilities, actions and decisions. It is right that all are held to account for what has been done, as well as what was left undone. Our determination in that regard is evident from our decision to appoint distinguished and independent experts to conduct a robust assessment of the reasons for the banking crisis which has dominated so much of the work of this Administration. We are determined to continue the examination, analysis and reflection so that full and fair assessments can be made, lessons learned and the basis established for a full political assessment of performance and responsibility to be made in due course.

I assert that the firm and unshakeable commitment to that process and that outcome is an integral part of the position from which this Government invites the Dáil to reassert its confidence.

I will deal with some of these matters in more detail. At this point, I wish merely to repeat my full acceptance of responsibility for the decisions I took, as Minister and Taoiseach. I believe that the record, informed by the expert analysis published over recent days, demonstrates that I acted to correct imbalances in our tax relief system and to rebalance the focus of economic policy from an excessive dependence on property and construction towards a more balanced and sustainable economy. That this was ultimately insufficient to prevent the vulnerabilities in our situation producing the critical situation in which we have found ourselves reflected severe failings in our banking and regulatory systems. These were compounded by failings on the part of external authorities who gave false comfort about the performance of both. This was all crystallised by the collapse in international financial markets to a degree which could scarcely have been anticipated. Accepting due responsibility as I do does not, however, oblige me to accept the re-writing of history and the bare-faced denials on the part of the Opposition.

I pay tribute to all of my Cabinet colleagues and my colleagues in the Fianna Fáil Parliamentary Party, the Green Parliamentary Party and the Independent benches. This has been the most volatile and demanding period in politics I have seen in over a quarter of a century in this House. The Government has worked long and hard in an effort to get Ireland through the crisis and our track-record has been acknowledged by international commentators to be the correct response for our circumstances. The recent banking reports from Mr. Regling, Mr. Watson and Professor Honohan confirm that.

The reports confirm the need for an extensive guarantee; confirm that Anglo Irish Bank was a systemic bank at the time of the guarantee; confirm that bank failure would have been disastrous for our economy; confirm that the timing of the nationalisation of Anglo Irish Bank did not result in higher costs; and confirm that steps have been taken to correct the main issues relating to regulation.

Our efforts are paying off. The most recent OECD Outlook has stated: "after a severe recession in 2009, the [Irish] economy appears to be close to a turning point". While painful, the tough decisions we have taken are working. I believe we have reached a turning point in our economy and the challenge we now face is to drive on with this approach in order that we can get more people back to work as quickly as possible. Other countries are now facing up to their difficulties as we have already done. It is clear that our determination to move early and decisively to address our public finances has generated approval and confidence abroad, from which we continue to benefit. Recent turbulence in the eurozone is the most vivid demonstration of the necessity of the decisions we made and the effectiveness of the policies we pursued.

The credit for this success lies squarely on the shoulders of Irish people. They have understood the need for tough measures and adapted to the most difficult of circumstances. While we face another difficult budget ahead, we are returning to growth and, with it, we are seeing an upturn in much needed confidence. While continued turbulence in financial markets is a strong signal that we cannot be complacent, the hard won gains of the past two decades remain despite the severity of the recession. This year, economic activity as measured by GDP will be around 30% higher than ten years ago and 150% higher than 20 years ago.

Every day, as Taoiseach, I meet and hear how people are struggling because of this recession and about the sacrifices families have had to make. I understand that. The Government has worked hard to develop a plan for economic recovery and it is working. The plan has four key parts, namely, to repair the banking system, restore order to the public finances, regain competitiveness and support enterprise to create jobs.

Repairing the balance sheets of our banks is arguably one of the most significant financial challenges ever faced by the State. However, the Government has faced this challenge for the simple reason that it is fundamental to getting credit flowing again, supporting economic recovery and creating jobs.

The recent reports conclude that major responsibility for Ireland's banking crisis lies with the directors and senior management of the banks. Anyone who denies that has not read the reports or is being deliberately mischievous. The reports highlight a number of mistakes which were made. This largely confirms my previous assessment of the key factors which were relevant, which were as follows. Fundamental errors were made within the management of individual banks which led to excessive risk taking. Banks became too dependent on wholesale funding.

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