Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

On Easter Sunday the Taoiseach and other Cabinet Ministers, as well as Oireachtas Members, myself included, stood outside the GPO and listened to the words of the Proclamation. As I speak on the austerity treaty today, I wonder did the Cabinet Ministers hear the same words that I heard: "We declare the right of the people of Ireland to the ownership of Ireland, and to the unfettered control of Irish destinies, to be sovereign and indefeasible." The Cabinet that stood to hear those words now asks us to put before the people for approval a treaty that flies in the face of the 1916 Proclamation. It is a treaty that seeks to negate the right of the Irish people to the ownership of Ireland. It is a treaty that would surrender control of Irish destinies and fetter this and future elected governments, tying them to the failed economics of austerity.

The people would have expected such a surrender from the last Government. It reeks of the dying days of the Fianna Fáil regime. This was the Government that collapsed the economy, built a pipeline to pour public money into the banking black hole and brought in the troika. All of these things were denounced in no uncertain terms by both Fine Gael and the Labour Party while in opposition.

Now what do we find? Not only are the billions still being paid out to bank boldholders, not only is the troika diktat still firmly in place, but we now also have a treaty that seeks to tie this State to an austerity programme that will prolong the recession precipitated by Fianna Fáil. As we speak, people are still reeling from the prospect of the latest imposition of water taxes, with both a flat annual charge and a charge for use and the threat of cut-off if they do not pay. This has come hot on the heels of the debacle of the household charge. Cuts in pay, cuts in education, cuts in health, cuts in social protection, cuts in health care, privatisation of State assets - this is austerity in action. This is the direct result of the surrender to the troika and much, much more of this is what Fine Gael and the Labour Party want the people to vote "Yes" to on 31 May.

Without a blush the Tánaiste and his Labour Party colleagues have dumped their pre-election promises to the electorate. The red flag has been cast aside, despite the weekend's annual conference, and the blueshirt hairshirt is now firmly in control. Where now is the Labour refrain, heard throughout the 29th and 30th Dáil that taxes should be based on ability to pay and that those who can pay more should pay more? Where now is the warning from the Labour Party of the stealth taxes and charges that would be imposed by Fine Gael? The Tánaiste and his colleagues made these points repeatedly in this House.

Speaking in the Seanad yesterday the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, said it is time "to hang up ideology" for a short while. I was astonished Deputy Howlin would utter those words. He was defending the privatisation of State assets. There is certainly no doubt that the Labour Party has hung up its ideology and its policies, particularly given the Minister's utterances and his actions and those of his colleagues in Government in the past 12 months.

What of Fine Gael? It received a very substantial mandate last year but on the basis that it promised change and a new direction. Far from setting a new direction, it has carried on with the legacy of Fianna Fáil. There is not a hair's breadth difference between the two. To this they have added an air of arrogance and self-righteousness, as personified by the Minister for hardship himself, the Tánaiste's Cabinet colleague, Deputy Phil Hogan, and by the backbench Fine Gael chorus of hecklers - none of whom is here now, thank God - who seem to have little else to contribute to this Dáil. Now these parties want the people to approve the austerity treaty to set in constitutional concrete the failed policy that has brought us mass unemployment and emigration, cuts to vital public services and stealth taxes that punish low and middle income earners.

Those who doubt what we say about this treaty need only heed the words of one of its chief authors, German Chancellor, Angela Merkel. She left no ambiguity about its huge implications when she said: "The debt brakes will be binding and valid forever. Never will you be able to change them through a parliamentary majority." The long-term nature of the treaty was also highlighted by ICTU economist Paul Sweeney who has said, "This treaty will contribute ... to making things worse because it is essentially a coup by the right wing economic conservatives to impose fiscal austerity on us forever." Bernadette Ségol, General Secretary of the European Trade Union Confederation, has said:

It is intended only to reassure markets. This agreement offers no long-term prospects for restoring employment and sustainable growth. Its sole objective is to tighten fiscal discipline and to have such discipline written into national constitutions or legislation. Europe must not become synonymous with sanctions and rigid fiscal policies. It must be identified with prosperity and must offer prospects for the future.

Perhaps the most clear sighted analysis so far has been provided by the economist Michael Taft in his presentation to the Oireachtas Joint Committee on European Affairs. He has pointed out that the Government estimates the structural deficit will be 3.7% in 2015 and that under the treaty it would have to reduce it to 0.5%. This could require fiscal adjustments of over €8 billion, a doubling of the austerity measures the Government has planned in the next three years. Many economists and responsible commentators point out that the treaty will depress growth in the eurozone, having a negative impact on foreign demand for Irish goods and services. Far from stabilising the eurozone, many economists believe it will destabilise it. As Michael Taft stated: "The fiscal treaty will perpetuate instability in the eurozone ... depressing economic growth during a period of stagnation will undermine confidence in an economy's ability to generate the future revenue needed to repay its debts." If the treaty had been in force in past decades, the State would not have been able to build up its infrastructure, from the ESB to telecommunications to transport. The positive growth at the start of the Celtic tiger period might not have been possible but the bubble would have been permitted. To quote Michael Taft again: "During a period of productive economic growth, the treaty would have depressed growth and employment. However, this same treaty would have validated an economy which was over-heating on speculative growth."

The treaty is a recipe for further recession. It is based on failed, right-wing economics that are condemning millions across Europe to misery. Once again the Government is trying to frighten the electorate by pretending that the State will receive no funds from the European Union and that it will be thrown out of the eurozone. That is patent nonsense. It is the politics of fear, nothing else. This is the time for real courage. The people will be acting in their own interests and those of their children - contrary to what was said by an earlier speaker - if they reject the treaty. They will be reclaiming ownership of Ireland for the people.

The elite in Brussels and Frankfurt will lament an Irish "No" vote - let them do so. However, millions of citizens across the European Union will thank us if we say "No" to austerity and "Yes" to an economy in Europe that serves people rather than bankers and speculators. As the first voice today outlining the argument in support of a "No" vote on 31 May, I call on people to use their vote wisely and in their and their children's interests by delivering a resounding and overwhelming "No" vote to the austerity treaty.

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