John Gilroy (Labour)

In light of the emerging developments in Europe, we might be a little precipitous in incorporating the Bill into law at this time. Anything we do in this fragile and uncertain economic landscape should have regard for what is happening in the wider arena. Nevertheless, a full discussion of the Bill is a good thing and when the situation becomes clearer, it is vital that we adopt a fiscal rule along the lines of what Senator Barrett suggests. The Bill should be considered in the context of the forthcoming budgetary review process.

In addition, perhaps, we should seek to expand this worthwhile piece of work and take a medium to longer-term look at what we can do — Senator Barrett's Bill will form an important part of this — to place our country in a position that would allow us to take early advantage of the economic upturn which will inevitably take place. We have taken measures to achieve some small level of stability since we came into Government. We can argue about that if we wish. Some will attribute the success to events in the wider European economy and say that we were the fortuitous beneficiaries of these advantages. It does not matter from which analytical position one comes. We all agree that it is a good thing for us to be in the vanguard of an upturn.

On agreeing that we have benefited, it should be possible for us to agree on a set of policy proposals which would put us back in that advantageous position. A good place to start our search for this elusive economic and longer-term tonic would be to examine the international indices or meters which show our current position vis-À-vis our trading partners and devise a legislative, economic and social superstructure that will give us a competitive advantage. One good place to start would be with the Economic Freedom Index which looks at ten measures of what are described as economic freedoms. They include headings such as trade policy, business policy, fiscal policy, government spending, monetary policy, investment policy, financial policy, property policy, labour and freedom from corruption. Despite our recent travails, it is easy to forget that we still score highly across all headings. Some of the institutional strengths identified are strong protection for property rights, efficient business regulation and competitive tax rates and policies that facilitate entrepreneurial activity.

Viewed from outside of this country, there is plenty to ensure we remain hopeful. Even though our competitiveness has been compromised, a strong emphasis on regaining our competitive advantage is vital. That requires a coherent policy response. We have achieved some success in that regard but let us look to the future and take the steps which are necessary to be best placed to take advantage of returning confidence. Senator Barrett's Bill adds to the policy good that is necessary to achieve this aim. I urge the Minister of State to have regard to the Bill when formulating future budgetary policy as it is important that he would do so.