Brian Ó Domhnaill (Fianna Fail)

I welcome the Minister of State at the Department of Foreign Affairs with responsibility for European affairs, Deputy Roche, to the Chamber during this important debate on the EU reform treaty or, as it is commonly know, the Lisbon treaty.

As the world's largest trading bloc, the EU is crucial to Ireland's future economic and trading strategy. Irish trade in merchandise with the EU-25 in the year ending December 2006 comprised exports to the value of approximately €56.6 billion and imports to the value of €36.1 billion. Companies supported by the State in the form of Údarás na Gaeltachta in the Gaeltacht, which comprises the most peripheral areas of Ireland — west County Mayo, west County Galway, west and south-west County Donegal and parts of County Cork, west County Kerry, County Waterford and the Ring Gaeltacht in County Meath — created trade or merchandise valued at €700 million in 2007, of which €350 million was exported. The majority of those companies are small. These figures reflect the considerable benefit of the EU as a market of 500 million people, as the majority of the exports were to other EU member states. Service exports to the EU amount to a further €30 billion per annum, representing 63.9% of our merchandise export market. Some 59.7% of imports come from within the EU.

Our membership of the EU has coincided with strong Irish economic growth and convergence of per capita income levels with some of the best regions in the EU. GDP per capita has increased from 58.8% of the EU average in 1973 to almost 125% of the EU average in 2006. The Union is important to the development of business in Ireland. Many business groupings around Europe are making queries about how the referendum campaign is going. The primary reason these queries are being made worldwide, but particularly in Europe, is that individual companies and groupings know the EU must engage more effectively if their opportunities for business expansion within the Union are to be developed. After 50 years, the EU must modernise and change if its business is to be carried out in a more effective manner. It must reform so that we can face the new realities, namely, EU member states are not the only countries in the world seeking to secure higher levels of inward investment. It must be generated from within. We live in a globalised world where we compete for new business against other trading blocs, including India, China, Brazil and emerging markets in Asia. Europe cannot stand still. We must raise our game, which is the purpose of the treaty. We must engage positively and proactively with it.

Anyone who opposes the treaty on the grounds that it is the wrong way forward for the European economy is putting a case that lacks credibility. During the referendum campaign, those opposing the treaty, including Sinn Féin and Libertas, a business liberal think tank, have sought to put forward obscure political and economic arguments to justify their case. They tell people to vote "No" because it is the right way forward for the European economy, Article 48 is a self-amending provision and the EU will have more power over finalising common commercial agreements with third countries. Their arguments are always couched in the negative. Nothing has changed in this respect since 1973 when they opposed Ireland's entry.

The choice for the Irish electorate is either believe these obscure and technical arguments or look to the list of proven economic successes that the EU has brought to its citizens. Europe may have started as a common market but the Single European Act brought about the Single Market, in which 82% of the Irish people now have full confidence. The Maastricht treaty gave the green light for the euro, thereby bringing many practical benefits to consumers and businesses alike. Not only have exchange rate transfers been eliminated but the euro is a significant source of stability for the European economy during the current rocky period. Members will recall the currency speculation that took place in 1992 which resulted in currency devaluations across Europe, a hike in interest rates and serious economic difficulties for member states and individuals. In the aftermath of the sub-prime mortgage collapse in America, the European Union would once again be facing the bleak scenario of 1992 if it had remained a community of 27 different currencies.

EU competition policy is pro-business and it helps the European economy to grow and prosper. Through the European Social Fund, the EU is a major contributor to the training of youth and long-term unemployed in Europe. EU regional and cohesion funds have helped to rebuild the infrastructures of the poorer economies of Europe to help them participate effectively within the Single Market and the eurozone. Those who oppose this treaty on economic grounds are putting forward flimsy arguments to back up their cases. They fail to recognise the stability and success that the EU has brought to the economies of all member states. It is as if the Single Market and the euro are apparitions or optical illusions. The EU needs new structures in order to address global challenges such as climate change, security of energy supplies, organised and cross-border crime and multilateral trade agreements.

The reform treaty has nothing to do with the consolidated tax base. The EU cannot set tax rates without the unanimous agreement of all member states. A study of the practicalities of introducing common corporate taxes in Europe conducted by the European Centre for Economic Studies on behalf of the German Ministry of Finance concluded that common corporate taxes were unworkable, politically undesirable and too simplistic for the EU with its 27 member states operating 27 different tax models.

This treaty is not only about the present generation, it is about the future. The intention behind the establishment of the EEC was to bring peace and harmony to Europe in the aftermath of the Second World War. This has been a success in that member states can engage with each other in a peaceful and democratic way. We have seen that first hand in the North, where the European Union has played a significant role in bringing peace in our time. The Taoiseach also played a major part in that regard. The electorate needs to recognise the €58 billion which has come from Europe since 1973, as well as the funds that have transformed the Border regions from which Senator Wilson, Senator Doherty and I come. I am daily reminded of the benefits of the EU for Border regions. The Irish people will not forget that. We will be voting for the people of the North as well as for the Republic. It is time we tell the Irish people we want to vote "Yes" because we want to be major players in Europe and to protect future generations in the decisions we make.