Áine Collins (Cork North West, Fine Gael) | Oireachtas source

One of the main objectives of the Government since taking office has been to get a substantial deal on our banking debt. The enormous efforts made by the Taoiseach and the Minister for Finance to do this have been discussed several times in this House. Their efforts are often condemned by the Opposition, and yet the Taoiseach and the Minister continue to make progress.

As soon as the Government came into office, it at once began to restore the reputation of this country, both in Europe and globally. Few now choose to remember the crisis we then faced - a huge banking crisis and an even bigger problem with our national debt and deficit. As a result of this, our European partners had lost confidence in us as a nation that was capable of running its own economic affairs. We were bankrupt in every sense, financially and morally.

Since then the Government has worked tirelessly to re-build our reputation. Slowly and steadily we have made such progress that we are looked at now as an example of how to implement tough decisions to deal with the financial difficulties we inherited. On a recent trip to Australia, this became apparent. It is striking how we are seen as a shining example globally. Time magazine also paid a huge tribute to the Taoiseach in its most recent publication, however at home the reception to the article was somewhat cooler. Sometimes one wonders about how we view ourselves with such negativity and criticism.

This reputation building and re-building bridges with all the European Heads of State led to a unique achievement in June at the European Council meeting by the Taoiseach. Ireland got a special mention in the official communiqué released at the end of the meeting of European Heads of State.

The Commission insists that the decision of the European Council stands. Indeed, again in the past week many EU leaders, including the President of the European Parliament, Mr. Schulz, who addressed this House last week, are insistent that the decision made by the Council must be implemented.

I was disappointed and shocked that Mr. Schulz's visit got so little media attention. His speech in this House was so clearly in support of what we are doing in Ireland and he stressed that the Council of Europe decision in June must be delivered on. He was clear that if the highest decision making body in the EU does not implement its decision, then it undermines the trust of EU citizens in European institutions. The Council agrees that trust is as important as fiscal issues. Without trust, international respect will be lost and the European Union as a whole will suffer. Trust is essential to gain European solidarity. That is why I believe the inclusion of the section on Ireland in the Council's communiqué is so important and the Taoiseach's work in the early hours of that morning will yet prove to be beneficial and historic for this country. Before the deal for Ireland and the breaking of the link between national debt and banking debt is achieved, we in this House must put in place the necessary legislation to implement the provisions of the stability treaty.

The Bill deals with two issues: first, the duty of the Government to endeavour to comply with the fiscal rules of the treaty; and second, to lay out two conditions of the budgetary rule that must be satisfied. These two conditions are detailed in the Bill. Section 6 provides for a correction mechanism that will be triggered if there is a significant deviation of the general government budgetary condition.

The second part of the Bill deals with setting up the fiscal council. This is real reform. We are not merely talking about it; we are implementing it. It also provides complete transparency as section 8 provides for the independence of the fiscal council. Section 9 gives the Minister the power to make some regulations, but these must be approved by the Dáil. Section 4 limits the Minister's powers to terminate the appointment of a member of the fiscal council. It only allows the removal of a member if a resolution has been passed by Dáil Éireann. This guarantees the independence of the members of the council. Section 11 makes the chairperson of the fiscal council accountable to Dáil committees. Section 12 makes the council subject to the Freedom of Information Acts.

I thank the Irish people for coming out and voting for the stability treaty earlier in the summer, allowing this fiscal policy Bill to be brought to the House today. Without the passing of that referendum, I really do not know where we would be.

I acknowledge the business sector that came out so strongly in favour of the treaty. Organisations, such as Business for Ireland, IBEC and Chambers Ireland, all gave of their time freely and were highly supportive of the treaty. They recognised the importance of it for Irish businesses.

On a personal note, I thank the people of Cork North-West for having the highest turnout on the day. I compliment the Minister for the ongoing negotiations that he is undertaken, and wish him luck. It is now all about negotiations and timing.

The Irish people recognised how important is putting in place some cheques and balances. The independence and transparency that will underline the fiscal council is essential and under these circumstances, I am delighted to commend this important Bill to the House.

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