Kevin Humphreys (Dublin South East, Labour)

I welcome the opportunity to speak on this Bill. As I was preparing to speak, I saw young children on a school tour come into the Visitors Gallery. I believe Deputy Ann Phelan has a school tour in and the young children on it are listening closely to the debate. We all carry a heavy responsibility to ensure we make the right decisions and conduct this debate in a proper manner, keeping to the subject and importance of it. Most people in this House will not bear the consequences of the decision on it. It will be borne by the likes of the young children who are observing this debate this morning.

I can well remember in the late 1990s when the Irish economy took off. Historic negotiations were taking place for the euro to come into place. The punt was replaced and many of the children in the Gallery would not even know what a punt was, but it was followed by reckless economic management. The euro has driven growth across the Continent making trade, investment, tourism and travel much easier. The European project has faced many challenges but the threat to the currency due to the huge debts run up by many countries threatens our small, open economy. When the euro was set up, the Stability and Growth Pact formed the rules that would govern member states taking part. Out of 27 states, 23 broke the original rules. Greece never once met the criteria, keeping annual borrowing above 3% of GDP and not reducing debt. In Ireland, we reduced debt but did so by running a credit-fuelled boom that we are all paying for now. A common currency needs common rules. The fact that no country took the previous rules seriously for the past 15 years leaves us in a position where we must stabilise the euro and bring certainty to the economy. The stability treaty will allow us through legislation to bring into force the rules we must follow.

By no means is this treaty the solution to all our problems but it is one of the many steps we must take. People opposing the treaty expect other European countries to lend us the money without any conditions, as if we have an automatic right to their taxpayers' money, but if we need access to the ESM, and I sincerely hope we will not, Germany and others will have to fund that. All European countries have an interest in ensuring the rules work.

We are at the edge of Europe and investors can choose to invest in Germany or Ireland. That is why we need certainty to encourage foreign direct investment. The treaty is an important part of securing that confidence and rebuilding the trust in the Irish economy. My own constituency has benefited from foreign direct investment, with many tech companies locating in the so-called silicon dock, rejuvenating the inner city. Anyone taking a trip into the Ringsend-Pearse Street area will see strong financial growth. That is the answer to our debt problem, but without stability across the eurozone, it is more difficult in Ireland. Between 1991 and 2000, when there was real economic growth, sovereign debt went from 95% of GDP to 35% as a result of that growth. We must repeat that miracle but that can only happen with a stable euro.

When considering if we needed a referendum, one woman approached my wife and said we should have the referendum because she never wanted to see another generation saddled with debt, and that if we went through the pain, we would have to ensure the next lot could not sink us again. The referendum will help achieve that. We cannot gamble with the futures of the children watching today. I ask people to support the treaty.

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