Seán Barrett (Dún Laoghaire, Fine Gael)

The measures being proposed here were brought about as a result of mismanagement and, unfortunately, Ireland is one of the reasons for that. At various budgets dating back to 2005, Fine Gael warned about the mismanagement of the Irish economy and the unfortunate outlook that existed. I would like to remind the House of some of the statements at the time by the then Fine Gael spokesman on finance, Deputy Richard Bruton. On the budget of 2007, he commented, "This is the latest in a series of budgets whose pattern is set by the huge spending spree. Government spending has grown 50% faster than the rate of growth in national income. Government has doubled its dependence on a construction boom, which now contributes 25% of its revenue." He continued to say, "You cannot possibly build indefinite spending growth on the back of a building boom no more than you can build long-term economic prosperity on the back of a building boom." I heard commentators asking why Fine Gael did not bring this to the public's attention over the years. We did. We consistently warned about the contents of the 2008 and 2009 budgets.

I value our membership of the European Union and it is unfortunate that we are part of the cause of the implementation of these changes, which are urgent and necessary. While I have doubts about any proposal for the suspension of voting rights, it is necessary to protect the euro and eurozone countries by putting such measures in place. In proposing that we accept necessary measures, we should seek a carrot and stick approach. I see no reason the European Union cannot establish its own independent credit ratings agency, staffed by independent professionals who would rate each member state's economy. There is no reason the power of the European Union cannot be used to borrow from the markets on behalf of all member states. Big can be beautiful when it comes to borrowing money. Member states would have greater strength borrowing money on a combined basis and receive a better interest rate. I accept our rate may still be higher than German interest rates.

This provides an opportunity to do more than just impose obligations on member states. It is time the Government sought these changes and encouraged banking facilities from other member states to be freely available to Ireland.

I must warn the Government about the challenges of climate change. The decisions taken by the electorate in the US yesterday will have a huge bearing on achieving a worldwide agreement on climate change. It is important Europe takes a leading role at the forthcoming Cancun climate conference to tackle climate change which is having a large effect across the world, particularly on the African Continent.

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