Enda Kenny (Mayo, Fine Gael)

I do not accept the Deputy's premise that this is an austerity treaty. It is an intergovernmental agreement and treaty about stability. From our perspective, it is about creating the conditions to get Ireland working again. I disagree with the Deputy's proposition that it is foisting austerity on the people. The country is in a programme until the end of 2013 and the intention is that we will emerge from it and be in charge of our own economic affairs. To do this, we will have to go back to the markets. Markets do not react; they anticipate. One rating agency has indicated that if Ireland was to vote against the treaty, the country would be downgraded. I have heard other rating agencies indicate that if something catastrophic were to happen in Greece, there would be a downgrading of a range of countries. How does the Deputy expect this country to get back to the markets and be able to borrow as a sovereign entity if we downgrade ourselves at the end of the programme from which we expect to emerge?

It is not fraudulent behaviour for a political party to state clearly that the treaty is about stability because that is what it states. The fiscal stability treaty seeks to provide a measure of confidence both in terms of good housekeeping, whereby we put our own affairs in order and continue the strong line of investment into the country, and by the State guaranteeing itself, through the vote of its citizens, access to the permanent bailout mechanism of the eurozone were it ever to be required. When the Deputy refers to GNP falling by 2.5%, he ignores the fact that employment also rose during that period. The Government's emphasis is on stimulating the indigenous economy. As I said to Deputies Gerry Adams and Micheál Martin, the focus of the Government is on the jobs action programme because we will only improve confidence in the indigenous economy if small and medium enterprises thrive. They are the key to the growth of the indigenous economy. I had the opportunity to travel to China recently accompanied by representatives of 90 Irish firms, all of them small and medium-sized enterprises. Every one of these companies was able to make its own connections, and contracts to the value of €35 million were signed. The new products being made by these firms will result in jobs being created for young people here.

It is not fraudulent behaviour for any political party to state clearly that this treaty is about stability, as it says in the treaty itself and as suggested in its name, fiscal stability treaty From that point of view, the markets anticipate things. That is why it is even more important that a strong signal of confidence and strength be given by our people to the fiscal stability treaty which, as Deputies know, refers in Article 1 to employment, social cohesion and competitiveness. They are the fundamentals of a strong economy and a good country. Far from foisting austerity on our people, in empathising with the challenges faced by so many of our people these days, we have no intention of turning back in the direction of where we were last year, when international comment equated Ireland with Greece. We are now in a very different position, heading in the right direction, and a strong "Yes" vote on 31 May will consolidate that and send out a message to those investors who are considering Ireland as a place for investment that they should continue to do so. The sooner that message of strength, clarity and confidence is sent out, the better for all our people. This will allow the Government to refocus its efforts on our own jobs programme for the indigenous economy and participate vigorously in the European summit on growth, which I expect will be the first of quite a number.

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