Shane Ross (Independent)

I was struck by Senator Mansergh's comments, obviously made from a partisan position, although that does not mean he is wrong, that the economic management of this economy has been sound over a long period. That is a very fair judgment and one which many on this side of the House would share, although we obviously would not agree on every detail of this Finance Bill or on the concessions made to certain vested interests. In general, however, it is an incontrovertibly accepted fact that in the last ten to 12 years, the Irish economy has been run in an extraordinarily successful manner. It is very difficult to find fault with the figures. It is equally difficult to deny the fact because we have performed so well in comparison with our competitors. Presumably, that is the benchmark by which we wish to be judged. It is very easy to say that a great deal of luck was involved or that one or two policies worked very well but if one compares Ireland with any of our European neighbours, its performance has been outstanding.

One might ask why this is so and I agree with Senator Mansergh that it is because the economy has been so well managed during that time, mostly by Fianna Fáil Ministers for Finance. Furthermore, although it might be unpalatable in political terms to mention this, it is a fact of life that while we are fully fledged, paid-up and supposedly loyal members of the European Community, our loyalty in economic terms and the measures taken have been far closer to the economy of the United States of America. That is something which we see in its raw form when the rows break out in Europe about the actions we are taking relating to tax matters. I commend the fact that the previous and current Ministers for Finance and the Taoiseach have stubbornly refused to yield to the pressures from Europe to harmonise taxation in ways which would be damaging to Ireland. It is a measure of the courage and individuality of the last two Governments on this issue that when it came to Ireland's vital national interests, particularly concerning corporation tax, they did not make the concessions the French, Germans and others wanted. That may have been difficult, though not terribly so. It was an area on which they stubbornly refused to give in, resulting in Ireland being the most fiscally successful nation in Europe.

We have an economy which reflects the ideology of a transatlantic nation more so than a European one and thank God for that. Had we followed the European model as closely as our neighbours would have liked, we would have been going down the same sluggish economic road they have been going down for many years. They may be recovering somewhat now, but our growth rate still far outstrips that of the French, Germans and others. We have attracted multinational industry to this country because of our low taxation regime and that is good management. That is what Senator Mansergh would refer to as good management but he would not put it in the same terms as I would do.

Let us welcome the fact that we are now the most globalised economy in Europe, which means that we welcome outside investment unapologetically and do not wrap the green or European flag around ourselves when we are running our economy. We are prepared to say that we are chasing prosperity and are willing to allow outside interests to help us to become prosperous. That is the reality of the Irish economy.

There are contradictory views on this subject, as there are on all economics-related issues. Last week the NCB published a report of dubious responsibility which argued that we will be prosperous, come hell or high water, for the next 15 years. That is a difficult argument to justify because one must anticipate every single unfortunate event and dismiss it as unlikely to happen. That report also maintained that our dependence on multinationals was limited. Another report was released yesterday suggesting exactly the opposite, namely, that we are very dependent on multinationals. We should not be ashamed of the fact that our dependence on multinationals has been partly responsible for our growth and largely responsible for our increased prosperity. The Government should take the credit for welcoming them in and standing up to our European neighbours in that respect.

I regret the fact that the Minister for Finance did not renew the bank levy. It was both a useful and punitive source of revenue. I see no reason taxation should not be used in a penal way to punish those institutions that have deliberately and knowingly broken the law. That is one of the reasons the 1% levy was introduced, if we are to be honest about it. It was politically acceptable and the banks were being punished for breaking the law. When institutions break the law, the individuals within them never pay the price but now it appears that nobody will pay the price. The banks can afford to pay the 1% levy. We should not take our feet of their throats at this point because they continue to abuse their customers in an unacceptable way and their shareholders are well aware of that.

Will the Minister specifically address the privatisation of Aer Lingus? It would be useful if he addressed the privatisation programme he intends to introduce. The State has no business in any of the enterprises in which it is involved. Will the Minister justify why he will raise only €400 million, an absolute pittance, out of the sale of Aer Lingus? Why is the Government going to such lengths to raise so little money on the airline's flotation?