Brian Hayes (Dublin South West, Fine Gael)

——and Fine Gael and Labour failed in the 1980s to arrest that situation, which continued until Ray MacSharry and Charlie Haughey took the right decisions in the late 1980s with the support of Alan Dukes. Horrendous public expenditure decisions taken in the first decade of this century have left us all in this situation. Inherent in each of these three decades, which saw a collapse in the economy and confidence, were political mistakes.

Undoubtedly, the most pressing issue for each House is how to navigate a way out of the current difficulties. In the Government's view, we need clear fiscal rules to ensure the country regains its sovereignty. As Senator Barrett stated, the fundamental problem we face is a structural deficit, in that we are spending more than we are collecting. One can bridge a deficit for a few years with the support of external partners — we are delighted to have them — but the difference next year excluding banking debt will be €13.6 billion, representing 8.6% of GDP. This is the inherent problem we face. In the view of the Government and the Minister for Finance in particular, clear rules on fiscal responsibility are necessary if we are to chart our way out of this situation and ensure that we never get into such a mess again. This aim is crucial for the country's reputation.

It is the Government's firm view that a fiscal responsibility Bill will be published by the end of March 2012. I can give this assurance as that Bill is a specific commitment under the memorandum of understanding into which we have entered with the troika. We must adhere to the commitment to publish the Bill, but the legislation's passage through the Houses is a matter for them. No international agency, be it the IMF or anything else, could put a gun to the head of either House and tell it when to pass the Bill. Senator Barrett's Private Members' Bill is important in this context.

The Government's Bill will place the Irish Fiscal Advisory Council on an independent statutory basis, an issue about which Senator Darragh O'Brien asked. Senator Barrett's Bill does not provide that basis.