Address by An Taoiseach

Address by An Taoiseach and Uachtarán Fhianna Fáil to the 72nd Ard-Fheis in Citywest, Dublin.

Welcome

Good evening delegates, and to all of you watching and listening at home.

I realise tonight as I talk to you that many of you here in this hall and around the country have worries for yourselves, your families and your future.

We are living in uncertain times and people are concerned about their jobs, their businesses and their homes.

Right across the globe there are people in the same situation.

The world has changed.

We are in a new era, never faced by anybody of our generation before. This is the worst financial crisis to hit the world since 1929.

The choices we make now as a society will have a profound affect on our country, and the generations of Irish people to come.

How did we get here?

Recessions are tough. They hurt people. They create anxiety.
They say that the pain of losing something is greater than the joy of gaining it.

So here in Ireland, where we have just seen the greatest period of growth in our history, this recession is hurting badly.
At our last Ard Fheis 2 years ago, we were all looking at a future full of hope. Now that hope has been overshadowed by doubt.

I first entered Dail Eireann 25 years ago. In that time, I have been privileged to witness the transformation of our country. I have seen us achieve full employment, become a modern and confident Republic, and resolve the conflict in the North. We have all seen great days together.

Now as Taoiseach, I am tasked with guiding this nation through one of the biggest challenges of her history.
It is the greatest honour of my life to lead this Republic, but like you, I wish these were better days.

But this is the situation we are in. And it is my job now, to work with all of you to make things better, for all of us. And for our country.

I am confident that with your help, we can survive this situation and return Ireland to growth and to better times. We have done this before, and we can do it again.

There are two key challenges facing us now.

First, how do we cope with the short term crisis we are in?

And the second is how do we plan for the best possible future for our country.

My Government and I are determined to get this country back on track.

Banks

If any market economy is to function properly, and if enterprise is to prosper, we need a fully functioning banking system that works. People need mortgages, business needs credit, and cash must flow again.

There is huge anger and disgust out there at the way some of our bankers behaved. What they did was wrong, it was selfish and it caused a lot of pain and hardship to Irish people. They will not be forgiven easily.

There is little return however, in wasting anger slamming the banks. The Fraud Squad and the Director of Corporate Enforcement will look after that. They have my full support.

What we need to do now is fix the damage they have caused.

In the weeks ahead, I will introduce new standards of banking regulation and new standards of corporate governance, which will restore our reputation and move us to the forefront of best international practice.

Central Banking Commission

I will create a new Central Banking Commission. This will incorporate both the responsibilities of the Central Bank and the supervision and regulatory functions of the Financial Regulator.
This will build on best international practice similar to the Canadian model.

And it will provide a seamless powerful organization with independent responsibility.

It will have new powers for ensuring the financial health, stability and supervision of the banking and financial sector.

Within the new Central Banking Commission, we will appoint a new Head of Banking Regulation with an international reputation.
We will create a Financial Services Consumer Agency by merging the existing consumer directorate of the Financial Regulator and the Office of the Financial Services Ombudsman.

There will be radical reform of the system and methods of financial supervision and regulation.

There will be caps on salaries of Bank Chief Executives receiving government aid.

The requirements on banks to support small businesses and enterprise lending and to assist people with mortgage repayment difficulties will be enforced.

The overall effect of this initiative by the government will be to
- Underpin confidence in our financial system
- To get credit flowing again
- To Enforce more responsible and transparent lending policies
- And ensure a financial sector that acts in the interest of the customer rather than short term gain.

This initiative will mark an end to a sorry chapter in Irish banking history.

Public Finance

The second step in our recovery is to sort out our public finances.

I want to make sure tonight that people realize the scale of the challenge we are facing.

This year we budgeted for 55bn euro in spending. The maximum amount we expect to raise from taxes is 37bn euro.

This leaves a gap of 18bn euro in the day to day costs of running our country.

We must close this gap.

We have decided to do this over the next 5 years and we have submitted our targets and proposals for this to the European Commission. And they have accepted them. But now we must achieve those targets.

And the only way to do this is through an appropriate combination of cutting spending and raising taxes.

Public Spending

The fact is, we are now spending too much on the day to day running of the country.

During the good times we could afford it, during the bad times we just can't. It's as simple as that.

At the moment, across every department of Government, every item of expenditure is being examined and reviewed. Every programme is being measured for value and those that are not performing or not necessary will be cut.

When we as a Government, ask you the people for taxes, I am aware that you deserve efficiency and best value for money.

So our first priority in this effort, is to get the best possible return for the money that you the taxpayer already provide.

Tax

But having done that, and having achieved the maximum savings possible from the Public purse, the scale of the deficit means, that we also have to raise taxes to close the gap.

Our tax system needs to change.

During the good times, we developed a fairer and more progressive tax system that allowed people to keep more of their own money. Everyone had a better standard of living.

That tax model was based on continuing growth. It works best when we have high employment and a thriving economy.

Unfortunately, we are not a thriving economy for now, and we need to adapt our tax system to fit our new circumstances.

Everyone will need to pay more.

And while no one can be insulated from this reality we will seek to do it in a fair way that is based on ability to pay.

Those that can bear it best will have to bear it most. But all will have to bear some burden; the scale of the challenge is so big.

Through this combination of higher taxes and increased cuts in spending we will restore balance to our public finances by 2013.

Jobs

There is a more human face to this recession. Every week now we are hearing of more people becoming unemployed. They mount up, and they become statistics. A thousand here, hundreds there.

But they are not mere statistics. There are people and families behind each and every one of those jobs.

And when a person loses their job, they are losing more than a wage. A job gives dignity, an opportunity to contribute and a feeling of achievement. That is what people can lose.

So, while I know that more jobs will go, we are going to do everything to hold on to as many as we can.

We need to protect our native businesses to the greatest extent possible.

That is why, at our next Cabinet meeting we will set up an Enterprise Stabilisation Fund with initial funding of €100m to be run by Enterprise Ireland. The aim of the fund is to support viable but vulnerable exporting companies who, but for this recession, would be thriving.

Smart Economy

This country currently ranks 2nd in Europe in terms of Entrepreneurship and we must encourage that now more than ever, because business start ups provide the jobs of tomorrow.

In December I launched a Plan on the Smart Economy, which aims to position Ireland as the leading location for business innovation in the world.

We want to create the best environment possible whereby good ideas are converted into great businesses.

We intend to use the billions of euro that we are now spending on research, development and innovation up to 2013, to create the commercialized products and services of the future.

I know that the vision of Ireland as the "Innovation Island" is ambitious. But I believe it is achievable given the creativity, the energy and the proven ability of our people.

Good ideas still exist during a recession, and this initiative will provide us with a model for sustainable economic renewal in the coming years.

Competitiveness

The key to Ireland's survival is to be able to compete in export markets, with goods and services that people want, at an affordable price. That is how we have generated our national wealth, and that ultimately, is how we maintain our jobs.

But the world is not an easy place to sell in now. The countries we sell to are in recession as well. Orders have fallen. There is more competition out there and we must regain our competitive edge.

So we have to reduce our costs, especially our energy costs, if we are to continue to win back the investment and the customers we need to recover.

We also must increase our productivity.

The bottom line is we have to work harder and work smarter, producing more for less, if we are to survive and thrive in the future.

Unemployed

As I mentioned earlier, losing a job is a big blow to workers and their families.

My government is committed to doing all we can for people who find themselves out of work.

We will:

- Create more than 50,000 extra training places for newly unemployed people.

- Help graduates get work through job placement schemes.

- Offer 'back to education' courses to those who need them.

We are investing now in creating courses in areas such as sustainable energy and the green economy to capitalize on this growing world wide market.

I have also asked the relevant Government Departments to pool their resources to try and keep people in their jobs before they lose them.

All options are being looked at.

So, by putting all this in place - we are addressing the banking situation in order to restore credibility, confidence and get credit flowing.

We are attacking the gap in our public finances by increasing revenue and cutting spending, in a planned way, over the next 5 years.

We are protecting as many jobs as we can and restoring competitiveness to the way we do business.

And we are investing in those who are out of work so that they can return to employment as soon as possible.

The pain this will cause

The measures we are taking to restore our economy will be painful for all.

Living standards will fall across the country, and we will need to adjust.

Services will suffer in the short term, and we will need to be patient.

But if we want to get back on track, if we want to get our country moving again, we have to do the right things now, regardless of the short-term political consequences.

Ireland Will Rise Again

So yes, the next three years will be tough. But this time will pass. Confidence will return. The world will recover. And Ireland will rise again.

We are a small and agile nation. We can use our size to our advantage, but we must adapt quickly and radically. And if we stick with the right strategy, and stay on the right path, we can be ahead of the pack when the tide turns.

We've done this before. And we can do it again.

Foundation for Recovery

But this time, we are starting from a stronger position than before.

The collective effort and hard work of the Irish people over the past 20 years has left us a strong legacy to build on.

During the good times, we invested billions in building a better country which has given us better roads, universities, communication systems, and public transport.

We have 1.9m people at work, and the most highly skilled workforce in the history of the State.

We have five and a half thousand Irish companies competing for us on international markets. They are employing 150,000 people as we speak.

We have one thousand multi national companies here, employing another 150,000 people.

And we have a confidence, which must now reassert itself. A confidence that was earned, by competing and succeeding at the highest level.

And even in this difficult year, through the National Development Plan we are continuing to invest a further 8bn as we build our country's capacity to compete.

And, we have peace in this country, a peace that has brought new possibilities, new opportunities and a new image to our Island.

This is the strong foundation on which we will build our future.

Our Friends

All the success we achieved in the past decades has not been ours alone. We have received help from friends around the world in our progress.

Our good relationship with a renewed United States continues, and I look forward to meeting President Obama in March to celebrate that relationship.

Europe has been a good and constant friend to Ireland and I hope we can strengthen our relationship when we vote again on Lisbon.

Ireland is vital to Europe and Europe is vital to Ireland. I now hope we have the courage to take our place at the heart of this larger, more vibrant Europe, and help shape its future as a confident and essential partner.

And I want to say this, we could never have contended with this financial crisis if we were not a member of the Eurozone, and if we did not have the support of the European Central Bank.

Our Republic is still strong. She has suffered setbacks before and she has survived. She will survive this one too. We are not finished our journey yet.

We are not yet the Ireland our parents wanted for us. We are not yet the Ireland we want for our children.

The Values that Make Us Unique

When John F Kennedy visited Ireland many years ago, he spoke some words in our Dáil that still ring true today,

He said.It is that quality of the Irish, the remarkable quality of hope, confidence and imagination, that is needed more than ever today.

As any country develops and changes, so too does its values and priorities.

But, as we grow, let us not throw out all the qualities and values that got us to where we are today. Let us hold on to the best of ourselves and shed the rest.

We need to build on those values that make us unique. Values that let the world know who we are.

The value of neighbourliness that bonds communities and gives identity to every village, town and city in the country.

The value of respect for our elders, care for our weakest and welcome for the stranger.

Our ability to create relationships and forge lasting friendships which is valued by others around the world.

I believe that being Irish holds a distinct and intrinsic value. Ireland is a brand. People know us. Our country, her landscape and her culture are known the world over. We must connect with that brand now and use it to give us the competitive advantage in a globalised world that is increasingly the same. We must ourselves portray the positives that others see in us.

Pulling Together

I want to see an Ireland that backs herself. Sometimes we are too quick to condemn and criticize in this country. There are cynics who will always say we can't do it, that there is no hope. Well, the Irish people don't need that now. It's a time for pulling together.

I want to see a society that benefits all of us on this island, irrespective of class, colour or creed. Rural, urban, foreign or native, private or public.

We are a beautifully complex people, a nation of a thousand parishes. But we are on the same island now, and to make this day dawn again, we have to stick together. Ireland holds us all together; we must all mind her now.

Meitheal

This government is determined to manage our way through this recession and to prepare for growth again. But Government alone cannot make it happen.

Tá focal Gaeilge a theastaíonn a thabhairt isteach sa gcomhra seo anocht. Agus an focal sin ná meitheal. Daoine ag obair le chéile ar son a chéile. Teastaíonn spiorad an Mheitheal anois níos mó ná riamh. Spiorad an chomharsanacht, spiorad an chomhoibriú. Ni neart go cur le chéile a chairde agus seo í an t-am chun brú ar aghaidh I teannta a chéile agus le tacaíocht dá chéile.

Ireland now needs a Meitheal mentality if we are going to get through this together.

The State can do its part but the State cannot replace the people.

We need a 'whatever it takes' attitude. Whatever it takes for our country to win again.

We need New Thinking and a winning mentality. When I say New Thinking what do I mean? I'll tell you.

Last year, after the breast cancer controversy, I went to visit some women in Portlaoise. Some of these women had been let down by the health care system when they needed it most. But it was their attitude that humbled me.

Do you know what those women said to me?

They said, Brian, How can we make the system better?
How can we move it on so that this doesn't happen to anyone else? How can we fix it?

That day and those women inspired me. Despite their own concerns, they were determined to make it better for others.

Their attitude is what I call New Thinking.

When Professor Tom Keane came to this country he found a cancer treatment strategy that wasn't delivering. He went to work to fix it. He used the resources that were available. He didn't ask for more money. Instead, he got buy in from the doctors, the surgeons and the nurses. And he reorganised the whole system from the ground up to work more efficiently and more effectively.

Now we will soon have a cancer treatment programme that we will be proud of.

That's what I call New Thinking.

Change through collaboration and co-operation.

In all areas of Irish life, right across the board, public or private, we can get much better results for the same resources if we simply change the way we do things.

And, if we focus on the interests of the people we serve and not the institutions that serve them.

That's what reform means.

And, if we are to successfully drive reform now, New Thinking and a Winning mentality are crucial.

We must bring New thinking, to New realities to find New solutions.

Republic

We must do this or we will let ourselves down. All of us.

And that cannot happen.

Because let's remember why.

Let's remember why we care.

This Party has always been the Republican Party.
We have always worked for something bigger than ourselves.

And while we don't always get it right, our hearts are in the right place.

No individual Irish person, should underestimate their capacity to improve the world around them. Whether they be at home, in the workplace, or in the community.

Believe me; we will get through this tough time by everyone taking personal responsibility to contribute to the common good.
And the common good must now be everyone's priority.

In all of my career as a politician, I have aspired to be true to that basic tenet of our Republican philosophy. And as your Taoiseach, I will always seek to live up to it.

I am aware of the history of the office I hold. And what those who held it before me endured and achieved. I know the challenges I face.

But I am so empowered by the respect I have for this country, her flag, and you her people that I will do everything I can to manage us through this crisis. There is a future to be fought for and I will lead that fight.

Tagaigí liom a Chairde.