Brian Walsh (Galway West, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to this important discussion on the economy. When the Government assumed office a little more than 18 months ago, it succeeded an Administration the legacy of which after 14 long years could be measured by the money it had squandered and the misery it had inflicted on the people. In many respects, the true extent of that wastefulness and misery is only now becoming evident. Fianna Fáil and its accomplices left in their wake a country in crisis and an international reputation in tatters. We are emerging from an era of auction politics during which successive Governments sought to inebriate the electorate with reckless policies that conferred short-term benefit on a few to the long-term detriment of the many. The country's finances were cannibalised by Administrations motivated only by a desire to retain power. They showed complete and utter disregard for fiscal rectitude and the national interest. As elections loomed, taxes were cut and spending was increased exponentially, but it was untethered to sustainable revenue or the reality that the nation was being marshalled towards economic collapse. Working age social welfare rates more than doubled under the stewardship of the previous Government. During four short years between 2004 and 2008 social welfare expenditure increased by more than €6 billion. This was at a time of low inflation and almost full employment. Between 2000 and 2009 the average salary in the public service increased by a remarkable 59%. At the same time, the standard and higher rates of taxation were reduced as part of reckless, unsustainable policies devised solely for self-serving, short-term electoral gain. Between 2008 and 2010 more than 250,000 jobs were lost in Ireland and by the time the Government came to office unemployment stood at 14.7%. At that stage GDP had fallen by 10%, housing prices had collapsed, lines of credit had dried up for businesses and the stock markets had collapsed, taking with them the retirement prospects of many ordinary people who had worked hard to secure their futures in old age. Banks had commenced the process of evictions and communities throughout the country were once again ravaged by the return of emigration. The nation was effectively bankrupt and is now in receivership.

It was against this background that the Government, the Minister for Finance in particular, was charged with the task of steering the country towards recovery. It is an onerous task in the midst of the most challenging economic circumstances ever experienced in the history of the State. However, as Deputy Seán Conlan noted, there is cause for both concern and hope and significant progress is being made. Last year the economy returned to growth, albeit modest. We are succeeding in reducing the budget deficit and meeting all of our key macro-economic targets. The interest rate on our funding under the stability programme has been lowered, saving in excess of €10 billion. Some 300,000 lower paid, part-time and seasonal workers have been exempted from the universal social charge, which allows them to contribute more to the domestic economy. Recently, a commitment has been secured at European Union level to address the issue of Ireland's legacy bank debt burden. Most important, our international reputation has been enhanced and restored. Perhaps the most tangible reflection of this is the reduction in Government bond yields. When the Government assumed office, bond yields were in excess of 14%, but now they stand below the 5% mark. Last Friday after Chancellor Merkel's comments on Spain bond yields here fell by more than ten basis points.

Against this backdrop, we have seen the unpatriotic race to the bottom between Fianna Fáil and Sinn Féin. They have competed desperately to see which can muster the most negativity about the circumstances of the country. Unemployment, while still far too high, has stabilised and the numbers on the live register are lower than when we assumed office. In my constituency, Galway West, in particular in Galway city, more than 1,900 new jobs have been announced in the multinational sector since the start of the year. A host of additional jobs are created to service the industry that results from investments by foreign companies. Only a long road will lead us back to recovery, but there are tangible signs that we are advancing on this path. By confronting the many challenges and difficult decisions that we face we are laying the foundations for sustainable growth, on which we will build a stronger, better economy.

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