Eugene Regan (Fine Gael)

I welcome the Minister and congratulate him on his success and elevation to the important office of Minister for Justice and Law Reform. He has hit the ground running.

This is an excellent programme for Government to which I subscribe and support as a member of the Fine Gael Parliamentary Party. It has been adopted by two political parties, Fine Gael and the Labour Party, which have the interests of the country at heart. For that reason there will be cohesion and progress and co-operation between them in ensuring the programme is put through.

Given the problems the country is facing and the need to get out of the rut we are in as a result of the economic recession, the key word is "confidence". I refer to the events which took place on St. Patrick's Day in Washington and the extraordinary success of the Taoiseach in restoring the image of Ireland in the United States, given the importance of that country in attracting foreign investment and tourists to this country. Because of the damage done to Ireland's reputation the success of the Taoiseach's visit to the White House and other venues on that day was vital in presenting Ireland's views. The visit has done much to restore confidence in this country, show there is a way forward and that we can get out of our difficulties.

The Government has taken the first steps towards reform in the use of State cars. While the savings may be minor, this decision shows that the Government is serious about reform and wants to run a prudent and cost-effective ship of State.

The other issue I wish to raise is that of the European Union and the European Council meeting which begins tomorrow. The programme for Government is essentially premised on establishing a new arrangement with the European Union for the bailout and rescue deal drawn up by the previous Government. We were led into a cul-de-sac by it in its dealings with the Union. We hope, therefore, that the Taoiseach can achieve some success at the European Council meeting in order to reconfigure the arrangements agreed with the Union for the provision of support and funding, the rescue of the banking system and the improvement of the State's finances.

When we were in the process of adopting the Lisbon treaty, a previous European Council on 10 July 2009 in Brussels took a decision to give guarantees to Ireland on a range of issues, not least the issue of taxation, that nothing in the treaty would affect the Irish position on taxation matters. The conclusions of that Council expressly stated the decision in this regard was legally binding on the Community and that it would be included as a protocol to the next accession treaty. The pressure being brought to bear on Ireland's corporation tax rate of 12.5% is being exerted by President Sarkozy supported to some extent by the German Chancellor and unacceptable in circumstances where such a solemn guarantee and declaration were given to this country. If that were to be European Union policy, it would represent an act of utmost bad faith against this country. The Irish corporation tax rate is not the cause of the economic banking crisis. The issue of solidarity is also enshrined in the Lisbon treaty and must be highlighted. I hope small member states will support Ireland and the Taoiseach in his efforts at the European Council.

The point I make in this regard has been reported in an editorial in the Financial Times this month. It states the pressure being brought to bear on Ireland with regard to its corporation tax rate represents a dishonourable attempt to exploit the eurozone's debt crisis by bullying Ireland into accepting policies that, it is hoped in Berlin and Paris, will stem leakage from their own tax systems. The editorial suggests this is wrong on a number of accounts. First, the cast iron guarantee given to Ireland in the Lisbon treaty and, second, the economic crisis in Ireland were not caused by or contributed to by our corporation tax rate. It eloquently states France and Germany have no business in pinning Ireland to the floor when Irish taxpayers are picking up the colossal bill for the role the European Union played in Ireland's property and construction sector bubble. Raising the corporation tax rate would not improve Ireland's public finances.

This point has also been made by Mr. John Bruton, Mr. Peter Sutherland and, more recently, Mr. George Soros who stated this week that peripheral countries such as Ireland should not have to bear the entire burden of the cost of adjustment. There is an issue of good faith. In the context of the guarantees given to Ireland, I hope this will be taken into account in the deliberations of the European Council this week which is the elephant in the room as regards the programme for Government and the ability of the Government to get the economy back on track.