Billy Kelleher (Cork North Central, Fianna Fail)

I welcome the opportunity to speak on the Finance Bill 2012 and give an overview of a few points that are important in the context of the economy. I will speak about where Ireland is at present and what we should do to address the major challenges we face. In the last year, the Government parties have started to appreciate the difficulty of governing in straitened economic times. Before last year's general election, they seemed to be singing a very different tune. We must go beyond that now. We should accept the need to create positivity in Ireland. We need to send a strong message to the international community to the effect that Ireland is capable and willing to introduce difficult measures with a maturity and a belief that it can come out the other side. When we debate these issues in this House, it is important that we are honest about what we can do. We should set out what we expect of the Government, of ourselves as parliamentarians and of the people.

This budget and the legislative measures included in the Bill before the House copperfasten the memorandum of understanding that was signed by the Irish Government and the troika a number of years ago. We are on a collective journey along that pathway. Regardless of whether people have opposed that approach, that is where we are now.

In the context of sovereignty it is highly regrettable that we have outside interference in how we run our affairs and are now benchmarked by an outside agency, which reviews the Government's performance and basically awards it marks to allow the State to access funding for the provision of funding services. The key issue, however, is that were it not for the support provided by the troika, Ireland would not be in a position to provide public services. Those who consistently undermine the agreement and memorandum of understanding must spell out from where they would secure the funding to pay the costs of running hospitals, education facilities, policing and the other public services which depend on the State's ability to access funding from current sources. While all of us want the State to be able to access bond markets as quickly as possible, it would not make sense to re-enter the bond markets at a higher interest rate than is available to us now. We should avail of all opportunities to access funds at the lowest possible interest rate.

The difficulties experienced by the State are magnified across the rest of Europe. The problems of Greece and other countries must be addressed in a European context. I am very disappointed with the European Commission as an institution because it has failed in its basic objective of ensuring cohesion and solidarity within the European Union. The Commission has stood on the sidelines and allowed the Franco-German alliance to run the affairs of Europe. This does not correspond to my belief that the European Union is a group of nations co-operating and acting in solidarity with one other. Unfortunately, Chancellor Merkel and President Sarkozy have undermined the European Commission which, through its silence, has effectively supported the Franco-German alliance. It should have stood up and demonstrated strength when it was most needed.

Most European Union member states have entered into the fiscal compact and agreed a new treaty. We should now explore ways of strengthening the institutions which play an important role in ensuring the Union works. The reason we want it to work is not political or ideological but because we want to provide opportunities and employment for citizens.

The fiscal compact does not go far enough in addressing a fundamental issue, namely, the role of the European Central Bank. The remit of the bank must be extended beyond the requirement to ensure inflation remains at a low rate. Notwithstanding the treaty, we will have to address the role and remit of the European Central Bank and its obligation to stimulate the European economy. In the United Kingdom, for example, the Bank of England is engaged in quantitative easing amounting to €350 billion, whereas the ECB is standing idly by. It will not even enter the bond market to purchase bonds and drive down yields in support of various sovereigns. While we often discuss the European Central Bank in abstract terms, it also has a fundamental impact on the daily lives of citizens.

The Fianna Fáil Party supports the fiscal compact but believes it will not resolve our current difficulties. The compact is akin to drawing up fire protection measures when a house fire breaks out when one must, first and foremost, quench the fire. This European Central Bank must become more proactive in ensuring the eurozone is stabilised. This will involve some form of quantitative easing and support for sovereign bonds to ensure yields stabilise.

It is disturbing to note that the Franco-German alliance was involved in a form of regime change in Greece and Italy, a development in which the European Union was complicit. Whether we like the elected governments of Greece and Italy is not the point. The issue is that these governments were elected by their citizens. Nevertheless, the European Union and Franco-German alliance consistently undermined the heads of various states. This is unacceptable as the European Commission is obligated under the treaties to stand up for small nations and ensure the treaties are honoured and obeyed. In recent times, the treaties have been consistently trampled on.

While I accept that every state and government will pursue its own interests, Germany and France are taking a short-sighted view. If they want to have a cohesive Europe in which countries act in co-operation and solidarity with one another, they have much work to do. They must understand that their current stance of President Sarkozy and Chancellor Merkel is having a corrosive effect on the noble and worthy ideal of a Europe at peace with itself and providing prosperity and opportunities for its citizens. This issue will have to be revisited in the broader context of the debate on a referendum on the proposed treaty, should the Attorney General advise that a referendum is required. I am not sure when she will report to the Government on the matter. If we have a referendum, it is critical that we discuss these issues. They must also be discussed across the eurozone and broader European Union because all the research shows that citizens mistrust the institutions of the European Union and believe they are being governed by unelected elites in Brussels who are far removed from the everyday difficulties they experience. For this reason, it is critical that we have a strong debate on the democratisation of the European institutions, their accountability to the people of Europe and the requirement on them to respect and uphold the various treaties that have been ratified by the member states since the foundation of the European Economic Community. For all these reasons, I would welcome a broader discussion both here and across the European Union.

While I try to remain positive, it is difficult to do so when one reads the Government's action plan on jobs. I do not say this disrespectfully. The Government was elected on the basis of a number of principles. It is an accepted fact that it has deceived the public by reneging on the commitments made prior to the general election. When one considers the commitments made in the programme for Government and its view that jobs are the central tenet of its economic recovery programme one must conclude that the action plan is a shallow document which would have had the same effect had it never been published. It is an aspirational text masquerading as a detailed plan.

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