Skip to main content
Normal View

Seanad Éireann debate -
Wednesday, 18 Jul 2012

Vol. 216 No. 15

Developments in the European Union and Ireland’s Presidency of the European Council: Statements with An Taoiseach

I welcome the Taoiseach from Derrycoosh, Islandeady, and Hawthorn Avenue, Castlebar, to the Chamber. I congratulate him and wish him well as Taoiseach.

Táim buíoch as ucht an chuiridh a thabhairt dom an tseachtain seo. I am actually pleased to come to the Seanad today to reflect a little on recent developments at European level and to consider what lies ahead, including during Ireland's Presidency of the European Council, which, as Senators know, will be from 1 January to the end of June next year. I am also here to listen.

The Government is committed to enhancing the role of the Houses of the Oireachtas in the conduct of EU business. I have made it my business to brief the Dáil ahead of each meeting of the European Council and to return to report the outcome afterwards. I know the Minister of State for European Affairs has appeared regularly in this House and that Senators have made a significant contribution to the work of the Joint Committee on European Affairs, which is doing excellent work. It is absolutely right and necessary that this should be the case. There is no longer any meaningful distinction to be made between domestic policy and European policy; European policy and law are domestic policy and law. Given the circumstances in which the country finds itself, it is all the more important that our policies and instruments at national and European level pull in the same direction.

It is absolutely clear that the Government's highest priority, leading this country into recovery and out of our programme, can be achieved only if the right policies are pursued, both here and across the Union. Put simply, Irish recovery needs European recovery. Last week, we saw the troika confirm again that Ireland is delivering on all of its programme commitments. As it observed, "implementation remains strong in a challenging environment". That challenging environment remains a major risk to our continuing progress. We are small, and domestic demand was never going to be sufficient to lift us back up to where we want to be.

Our ability to restore growth depends on our capacity to export, which means finding partners willing and able to buy what we produce. We have done what we can to drive this, including through improving our competitiveness. Members will be aware that Ireland is among the top 20 globally in terms of competitiveness. However, as the troika acknowledged, weak trading partner growth is damaging export demand.

Ireland needs stability and an end to the euro drama and crisis. We need strong leadership and a credible growth agenda at European level, an agenda that is implemented in deed as well as word. That is what the Government has been working towards. That is what will be right at the heart of our Presidency when we take over at the tiller next year.

Since taking office last year, I have attended nine meetings of the European Council, or meetings of Heads of Government, including some informal ones, and six meetings of the euro summit. Whereas people looking in from outside might sometimes criticise what they regard as the slow pace and lack of progress, I see a process in which ideas that began on the fringe have come to occupy the centre ground.

We have not always been as quick or decisive as some, including me, might have liked but we are charting new territory — the Union had no emergency tools available to it when the crisis began — and people approach the table with very different perspectives. It is not an easy task to reconcile the very different views and interests to hammer out a compromise. Senators are well aware that, with 27 member states, 27 Prime Ministers, 27 governments whose tenures of office are of widely varying stability, and very different perspectives, it is often difficult to reach an agreement on what the strategy should be. This is also the case in the eurozone, where there are 17 Prime Ministers and 17 governments, in addition to one bank whose governors have very independent views.

We should never underestimate the extent and importance of what has been achieved, including at the most recent meeting of the European Council and summit at the end of June. I approached that meeting with two particular goals and I set these out in the letter I wrote to all other Heads of State or Government on 7 June. I wanted to see agreement reached on a growth pact for Europe and I wanted to see agreement on a solution to the banking crisis in Europe that broke the link between banking and sovereign debt.

Significant progress was made on both fronts. The European Council agreed a compact for growth and jobs and the summit agreed a number of important steps aimed at addressing the immediate crisis in the euro area, including the imperative need to break the vicious circle between banks and sovereigns. As I said at the time, if these decisions are to have an impact in the markets, we must now show commitment and resolve in implementing them in good faith and in good time. We also looked to the longer term, with President Van Rompuy presenting his report, Towards Genuine Economic and Monetary Union, laying the groundwork for a strong and credible Union and currency into the future.

I have argued for some time that the first step in finding a cure to the problems facing Europe is to apply the right diagnosis. This seems like an obvious and straightforward proposition, but it has not always been applied. Despite the objective fact that Europe, as a whole, does not have the same difficulties that face other parts of the world, it has been treated more harshly in the judgment of the markets. Why should this be? I believe that the markets have been adding in what I would term an "uncertainty" premium, based on doubts about the depth and irreversibility of Europe's currency union.

Leaders have stated many times that they stood ready to take whatever steps are necessary to defend the currency but they have not always been believed. Words have not been sufficiently backed up by deeds and credibility has been damaged as a result. New tools were needed to give greater substance and credibility to our efforts. The fiscal treaty was an important step, building on the sixpack of legislation adopted last year. It sent a signal that we are serious about achieving the type of budgetary discipline necessary to secure a currency union.

At its heart, the treaty is about establishing the trust necessary to deliver solidarity and the steps taken by euro area leaders at the end of June build on this in a very significant way. The statement issued after the meeting contains a number of vital undertakings, most importantly the imperative need to break the vicious circle between banks and sovereigns. This interaction has been at the heart of the euro crisis. I have long argued that it would not be possible for Europe to move beyond crisis and towards recovery for as long as banking and sovereign debt remained entangled. We now have an agreement to separate them and we have a process under way to bring this about. The Commission will shortly present proposals for a single supervisory mechanism and the Council has been asked to consider them urgently by the end of 2012.

The euro group, the forum for finance Ministers, has agreed that technical discussions on future European Stability Mechanism direct recapitalisation of banks will also start in September so that the ESM could be in a position to decide to recapitalise banks directly once an effective single supervisory mechanism is established. That is a very important decision. I also made it very clear in my contacts with partners, both before and at the meeting, that the principle of equal treatment had to apply. I simply could not accept a position whereby Ireland would be at a disadvantage for having taken the steps necessary to secure our banking system, both in the interests of our economy but also in the wider European interest, before new arrangements applied. Where possibilities were being offered to others, Ireland had to stand to benefit also. I insisted on this, and it was agreed; the statement, in undertaking to examine the position in our financial sector in the interests of improving the sustainability of our programme, states clearly that "similar cases will be treated equally".

The Minister for Finance has already moved forward with his colleagues, securing their commitment to return to the matter at their meeting in September, following technical discussions among the troika. I remain hopeful of an early resolution, delivering a significant boost to our chances of recovery. For obvious reasons I cannot go into any detail on what will be a complicated and sensitive negotiation but I can assure the Seanad that the Government will be working to ensure the best possible deal for Ireland and for Irish taxpayers. I note in particular the comment of Mr. Mario Draghi yesterday following his meeting with the Minister for Finance that whatever deal may be done for Spain will also be reflected in the outcome for Ireland. I very much welcome this statement.

This issue has the potential to make a real difference for us. The meeting also agreed to use available instruments more flexibly in support of countries in difficulties that are living up to their reform commitments. This was seen as being of particular importance for Italy, which has a very large economy. It opens up the possibility of the European Financial Stability Facility, EFSF, and, once it comes into being, the ESM, intervening directly in the markets. Since the meeting, the ECB and the EFSF have concluded an agency agreement under which the ECB would act on behalf of the facility in making bond purchases.

The other real breakthrough at the end of June was agreement on a compact for jobs and growth. For a long time the Government has argued that there was an urgent need to match our efforts at consolidation and reform with an equally strong focus on generating growth and creating jobs. The approach to date at European level has been far too passive — with an expectation on the part of some that putting reform policies in place would be sufficient for growth to return. It was never going to work. We now have agreement on a much more active and ambitious approach. There will be an immediate stimulus, with a €120 billion investment package to be mobilised for fast-action growth measures. The European Investment Bank will be an important player in this and it was agreed to increase its paid-in capital by €10 billion to increase its lending capacity by €60 billion. This is intended to unlock approximately €180 billion in additional investment in Europe.

In follow up to this, I had a very positive and productive meeting with the ElB President, Werner Hoyer, when he visited Dublin on 6 July. We agreed that our officials will work closely together to ensure that Ireland benefits to the maximum extent possible. We will be pushing for these discussions to be advanced as rapidly as possible. In the more medium term, the European Council agreed that deepening the Single Market, in particular in the digital area and for network industries, could make a real contribution to growth and job creation. The Commission will be bringing forward its second round of proposals under the Single Market Act in the autumn. These will not only be an important input, they will also help to shape the agenda for the Irish Presidency in the first half of next year.

We also agreed that we need to improve our ability to translate high-level agreements into policy action on the ground, and we will not secure the results we are working for if implementation remains patchy or unfulfilled. The Commission will now make an annual report on this as part of the European semester process. There was a shared focus on the importance of external trade as a driver of growth. I do not need to tell this House how vital this issue is for Ireland as we are a small and open trading economy and our future prospects depend heavily on our ability to export.

We will now press forward with free-trade agreements with a number of key partners. The transatlantic dimension will be a particular focus of our Presidency, as I noted at the Council meeting. The EU-US high-level working group on jobs and growth will bring forward its recommendations later this year. As the nation holding the Presidency, we will be working to ensure that negotiations on a comprehensive transatlantic trade and investment agreement get under way in 2013 and we will host an informal ministerial-level meeting in Dublin dedicated to the key EU-US trading relationships. Although it will take some considerable time to bring the process to fruition, it holds enormous potential in the context of trade across the Atlantic in future years. I have already stated my view that future prospects for Ireland and for Europe are inextricably linked. For this country to recover and grow, we need Europe to recover and grow. When we take the stage when we hold the Presidency next year, we will have a unique opportunity to put our stamp on this vital agenda. During our term in office, from January to June, our absolute priority will be to stimulate sustainable economic growth and job creation. We will manage the European semester process, the new system of economic and budgetary co-ordination within the Union and we will co-ordinate efforts under Europe 2020, the process through which member states advance national reforms. We will put our shoulders to the wheel to give real momentum to efforts to deepen the Single Market, including through the digital single market, helping to give Europe a real competitive edge. As Senators are aware, the European Union has a market potential of 500 million people and on the fringes of this Union are a further 500 million to 600 million people, including in African countries which have grown at an average of between 5% and 7% in recent years and which will continue to do so for the foreseeable future.

Strengthening the EU's research and development capacities is also essential and we will host a range of conferences in Ireland and events in Dublin on areas such as green innovation, key enabling technologies and medical technology, in which Ireland has scored highly in recent times.

As the House is aware, this will be our seventh time to take the Presidency. Each Presidency has brought its own challenges, but rarely have the stakes been higher. During the six previous Presidencies, the Government of the day did a very effective job in managing the issues at European level. While the Union may have been smaller, how those Presidencies were managed did a remarkable job for the reputation of our country. Our Presidency next year offers an important opportunity for us to make a real contribution at European level, helping us to restore and rebuild the excellent reputation we have enjoyed in Europe through most of our four decades of membership. While this may have been damaged in the past, this is our chance to bring back its shine.

In chairing meetings in Brussels, from the most technical of working groups to the most politically-charged ministerial meetings, we will have a chance to demonstrate to our colleagues in Europe what Ireland can do. I assure the Seanad we will make the most of these opportunities. For the Government, the logistics of preparation for the Presidency are quite daunting and will involve intensive interaction by everybody. Ministers are aware of the preparations that must be made and the details are being worked out as we speak.

We will strive to manage business as efficiently and effectively as possible and we will draw on the immense range of experience within our system to be an impartial and creative broker for agreement. Fostering good relations with the European Parliament is an essential part of this work. It will be a huge undertaking for the country, particularly at a time of reduced resources, and we will make every euro count. We expect to host approximately 175 official events in Ireland, each with its own complicated set of logistical challenges and demands for translation, transport and press arrangements. Senators are aware there are 23 official languages at European level which requires preparation and the detail must be right.

Plans are already well advanced at political and official level, but I want the Presidency to be a whole-of-Ireland effort. I want the Oireachtas and the people to be fully engaged. This is a chance for the people to see their Union at work and to see Ireland offering leadership and direction in a number of areas. I want Irish businesses to make the most of the opportunities it presents, especially our small and medium enterprises. We have been working closely with State agencies since last year to ensure we take advantage of every opportunity to promote Ireland and Irish goods and services abroad. We want all of our visitors, the delegates, the press and the support staff, to leave the country having had a positive and welcoming experience during the course of the Presidency next year. This is the time to put the best foot forward.

As I stated, Ireland's Presidency comes at an important time for the development of the European Union. We will follow Cyprus and precede Lithuania and Greece. It may be that the multi-financial framework will be decided before the end of the year but it may have to be decided during the Irish Presidency; this is not clear at present. It will be a time when we are not only looking to move beyond crisis and back to recovery, but also when we will lay the groundwork for the future of the European Union of which Ireland has been a central part since we joined.

At the European Council meeting at the end of June, President Van Rompuy set out some of his thoughts on how we can move towards a genuine economic and monetary union. He sees this as moving along four complementary tracks, namely, banking union; greater fiscal and budgetary integration; greater economic co-ordination; and, alongside these, greater democratic legitimacy and accountability. He will flesh out his ideas further between now and October and produce a final report before the end of the year. This is a debate of great significance for the Union and for Ireland and it will be carried forward throughout next year. It will give rise to very important and fundamental questions for us and for others. It is a debate for which we will need to prepare and position ourselves well, having carefully thought out the issues that need to be dealt with.

The Oireachtas will, of course, have an important part to play. However, I want to see the debate go further and open a discussion that engages people throughout the country. The engagement of our people has been part of the process of Europe in the referenda we have held over the years. The people's decision on the fiscal stability treaty was clear, decisive and strong and in its own way has led to the European perception of Ireland as a country that is serious in working with its people to deal with the serious challenge we face to retrieve our economic independence.

Next year will be the 40th anniversary of our membership of the Union. Despite the events of recent years, Ireland has done well in Europe. We have developed our economy, we have brought opportunities to our businesses, and we have widened our horizons as a people. Our future lies in remaining a fully committed participant in a renewed and robust European Union, with a strong and credible currency at its heart. This is what the Government will continue to work for, before, during and beyond our Presidency. I thank the Cathaoirleach for the opportunity to say these few words.

I thank the Taoiseach. A number of Senators have indicated they wish to share time. The first three speakers with be Senators Darragh O'Brien, Terry Leyden and Thomas Byrne.

Ar son Pháirtí Fhianna Fáil, cuirim fáilte roimh an Taoiseach go dtí an Seanad. Ba mhaith liom freisin comhghairdeas a dhéanamh leis as a phost mar Thaoiseach. I thank the Taoiseach for taking the time to come to the House today to set out in some detail how we are approaching the crisis in Europe and looking to the future as to how Ireland will deal with the EU Presidency. We must look forward, but I would also like to look back with regard to a number of items raised by the Taoiseach. Significantly, the Taoiseach mentioned the Union had no emergency tools available to it when the crisis began, and this was the biggest flaw in the EU. This in itself leads me to state the previous Government stood alone in Europe when the banking crisis happened and it was very restricted in the options it had.

The Taoiseach also stated Ireland would be at a disadvantage for having taken the steps necessary to secure our banking system in the interests of our economy and in the wider European interests before new arrangements applied. This is with regard to the Taoiseach's ongoing negotiations to secure a better deal. I agree with the Taoiseach but it is a clear acknowledgement from him and the Government that it was in the interests of Ireland that very difficult decisions — which can be criticised now and rightly so and which can be discussed properly — were taken not only in the interests of Ireland but in the wider interests of Europe. Ireland should be rewarded for doing this because, as the Taoiseach well knows, our unemployment rate is the highest it has been in 20 years, standing at 14.9%, and according to a recent report 1.8 million people in the country have less than €100 a month in disposable income. These are the challenges the Taoiseach, the Government and the Oireachtas face in trying to get a better deal for our citizens to ensure their quality of life improves. The Taoiseach made two very significant statements. I find it difficult to marry them with a comment he made that our reputation has been tarnished in recent years. This canard about attendance at EU meetings and so on has been put to us on number of occasions. Independent reports, such as the Gothenburg report, do not bear testament to that in terms of the attendance of Irish Ministers from the previous Administration. That is in the past and we should leave it aside.

I congratulate the Taoiseach on the passing of the recent EU fiscal treaty referendum. Again, I commend the people on making the right decision. My party, as a pro-European party, and my party leader, Deputy Micheál Martin, tried to play a positive role in it, which the Taoiseach acknowledged. I welcome very much that the Taoiseach is looking for input into the theme and the thrust of our EU Presidency and that he will look to both sides of the House, to members of my party and to Independent Members and, most important, to the wider community, on how we will frame our Presidency.

The Taoiseach stated that he does not believe it is appropriate to go into the detail of his, and the Government's, negotiations on behalf of the Irish people. I understand that to a certain degree but he should trust the people more. We should be more open about what we are looking for in terms of this deal. The Taoiseach stated in the other House that we would pay our way and pay all our debts and that we were not looking for a debt write-down. I would like to know what we are looking for. I welcome the announcement made at the recent July meeting but it behoves the Taoiseach and the Government, and it would be helpful to the people, to set more clearly our position and what we are looking for.

On behalf of my party, I wish the Taoiseach well. We will play a positive role in the Presidency and we would like to feed into it. We look forward to seeing the Taoiseach in the House before he takes over the Presidency of the EU.

Cuirim fáilte roimh an Taoiseach to the Seanad, the second House of the Oireachtas. I am delighted he is here today. It is his first visit as Taoiseach and I hope it will not be his last. We are not too bad here really. We have a Castlebar man as Cathaoirleach, so he is in good hands.

We all fully support the Taoiseach as the President of the European Union from 1 January to the end of June 2013. It is a great honour for the Taoiseach, for the Government and for Ireland. We have a very proud record, with seven presidencies of the European Union. In 1990, when I was a Minister of State, another Castlebar man, Charles J. Haughey, led us and Germany was reunified under the Irish Presidency. That was some record and I wish the Taoiseach similar success in other fields in the next six months.

The Taoiseach has a particular role and he outlined very well his aspirations and the policies he wishes to pursue during the Presidency. I know he has the ability and ambition to achieve them. As he knows, both of us were Ministers for trade and it is vitally important. The Taoiseach, as President of the European Union, and his Ministers, as presidents of Councils, will have a particular role in leading trade missions not only throughout Europe but throughout the world, in particular to China and America. His status not only as Taoiseach of this country but as the President of the European Union for this period has particular importance which cannot be bought. By the way, we will not hold the Presidency again until 2027, which is a very long time away. That is why the opportunity must be grabbed, which I know the Taoiseach will do.

An area of international policy, about which most Members of this House are concerned, is the Middle East. Great difficulties have arisen there again. Hopefully, during the Taoiseach's Presidency, he will have some influence in the Palestine-Israel situation. He will have a busy schedule but it is vitally important he uses his position to try to bring about some sense of unity in that region.

I would like to extend an invitation to the Taoiseach to address the plenary session of the Council of Europe, which represents 47 countries and 800 million people. To go to the Council of Europe, as President of the European Union, would be of particular significance. The Council of Europe extends into Russia and beyond. It is a particular platform of which I believe the Taoiseach will avail.

The Taoiseach has tremendous support from the Civil Service, as has this Government and as Governments have had in the past. The civil servants are preparing the way for this Presidency and they will not be found wanting in the work they will do for the Taoiseach and for Ireland. St. Patrick's Day 2013 will be very significant in that the President of the European Union will meet the President of America and it will emphasise the great gathering which is planned.

Gabhaim buíochas leis an Taoiseach as teacht isteach sa Seanad inniu agus gabhaim buíochas le mo cheannaire féin as ucht am a roinnt liom. Táim buíoch den Taoiseach gur admhaigh sé ina ráiteas inniu go ndearnamar sa pháirtí seo gach rud maidir leis na bainc ar son eacnamaíocht na hÉireann agus na hEorpa. Go dtí an lá atá inniu ann, tá daoine san Oireachtas ag rá go raibh rud éigin cearr leis na cinntí a rinneadh maidir leis na bainc thar na blianta beaga seo thart.

I welcome the opportunity for the Taoiseach and Ireland to host the Presidency of the European Union next year as it is a huge opportunity for him and for the country. I was in college when John Bruton was President of the European Union and I was walking down O'Connell Street when I saw the fleet of cars carrying the European Union leaders past the GPO, presumably on their way from Arás an Uachtaráin to Dublin Castle. I thought how proud the leaders of that era would have been to see Ireland hosting all the leaders of European Union as an equal and Ireland directing European Union policy. It is fair to say that during the presidencies of Charles J. Haughey and Bertie Ahern, significant progress was made on European issues. The opportunity is there for the Taoiseach next year, with the support of the country, to do the same.

A number of issues need to be addressed. The Taoiseach could push forward the issue of European bank regulation. The transaction tax should be applied on a global basis so that no country is at a disadvantage. There is a huge opportunity in regard to the ratings agencies. There were initiatives at European Union level but they have not been followed through. That needs to be done so that the people can take control and have more power over these institutions. We do not know what is going on behind closed doors in these ratings agencies which have such an influence on the global economy.

There is widespread support for the Seanad having a role in the scrutiny of European Union legislation. If we are going to bring the people with us on the European journey, which is a job the Taoiseach must do in terms of future referendums, we will have to devote much more time to the scrutiny of European Union legislation so that when issues such as bogs, habitats directives, sceptic tanks legislation, etc., come before us, a process will have been set out at a very early stage to explain where these proposals or court decisions have come from. There is an attempt to do that at committee level in the Oireachtas but surely there is a role for the Seanad in that regard, and it is a role it would be willing to play.

I am delighted the Taoiseach has been able to come to the House to address us and to keep us up to date on developments at European Union level and, more important, on the work he and his counterparts, as Heads of State and Government, are doing to stabilise the euro and bring confidence back to the market to encourage a return to economic growth and the restoration of our economy. The European Council meeting last month was an important one for Ireland. As the Taoiseach stated, the compact for growth and jobs, which was agreed on, was vitally needed and, more critically, the link between banking and sovereign debt, which has damaged us so badly over the past number of years, was broken decisively. For Ireland, this vital step represents an important breakthrough which can help us to recover and return to the markets. This outcome reflects the intensive efforts the Government has made since taking office to explain the situation regarding Ireland's legacy bank debt to our partners and to seek their support in engineering an outcome which can reduce the excessive burden on the Irish taxpayers. There is much work still to be done to implement the agreements. We should all, as politicians and citizens, be pleased with the significant progress that the Taoiseach has made on both fronts to date.

I come from Waterford and know first-hand the benefits of targeted and focused investments and the unbelievable devastation caused by recession and unemployment. I know there will be many Waterfords across the European Union and that is why the Compact for Jobs and Growth adopted by the European Council last month with its immediate stimulus of a €120 billion investment package; agreements on measures to deepen the Single Market, particularly in the digital arena; and agreements to work on enhancing external trade links are ambitious and, I hope, achievable goals.

An issue that arises almost daily in the House is the crippling effect of unemployment, particularly youth unemployment. I have seen the effects of unemployment in my city and that is why I am especially pleased that efforts to increase youth employment, with the objective that within a few months of leaving school young people should receive a good quality offer of employment, continued education, an apprenticeship, or a traineeship which can be supported by the ESF, was part of the agreement at the European Council.

It is my sincere hope that by the time Ireland undertakes the six-month Presidency of the European Council on 1 January next year, the preparatory work on these efforts will be sufficiently advanced in order that we can bring our experience and skills to bear on driving them forward for our own good and that of our European partners. The forthcoming Presidency will be crucial in demonstrating Ireland's ability to manage the agenda of the EU in the light of the current difficult times. Some might call it the luck of the Irish or some might see it as Sod's law but in 2004 our Presidency of the Council coincided with the accession of ten new member states to the EU. On this occasion it will coincide with the 40th Anniversary of Ireland's accession to the EU. I have no doubt that the Taoiseach and his staff in the Department of the Taoiseach will manage the official and celebratory aspects of the Presidency with their usual skill and expertise that always serves to showcase Ireland at its best when we are under the spotlight. I am sure that I can speak for most, if not all, in the House when I say that I am sure that the Committee on Procedure and Privileges will favourably consider a request by Government to assist in delivering a successful Presidency. Last July this Chamber was addressed by the then President of the European Parliament, Mr. Jerzy Buzek. His address was an enlightening and interesting one that brought the House closer to the European institutions.

One of the most unfortunate things to happen in Ireland in recent years is a distrust between the Irish electorate and the European Union due to a disconnect between the two. There is support in the House for us, as a group, to assist in the oversight of European-driven legislation that must be adopted into Irish law. While new legislation proposals from the EU are dealt with by the Oireachtas joint committees there is a need for a more open debate on new proposals. Seanad Éireann could be better utilised by providing a forum to debate and scrutinise new legislative proposals that emanate from the European institutions. Many legislative and non-legislative proposals emanate from the European Commission filter through the European Parliament, the Commission and the European Council. Each national parliament has an eight-week window in which to file an objection or an observation on the draft proposal and that gives little opportunity for a national parliament to influence policy.

Each November the European Commission sets out its agenda for the following year. For example, in 2012 the Commission has 129 items for discussion and formulation of policy. There is an ongoing discussion between the Commission and the member state Governments on legislative proposals but national parliaments only become involved at the end of the process. There is a need in Ireland, more than ever, to make the electorate aware of the work done at European level. An open debate on new proposals would help to make more information available to the general public. The proposal from Members of the Seanad is for two days a month to be set aside to deal exclusively with European Union draft legislation. In order to proceed with the proposal it would be necessary to allocate additional staff for a couple of days per month and I hope that the Taoiseach will support us in our efforts in that regard.

I understand that 2013 may be designated as the European Year of Citizens. It would present us with an opportunity to promote a discussion of Ireland's membership of the EU and its place in Europe, a debate that we need to have at national and local levels. It also presents an opportunity to consider what it means to be a citizen of the European Union in the 21st century and to reflect on how best we can address the concerns of all of our citizens.

It would be remiss of me not to raise another issue. Recently, we passed a resolution calling for the future of the House to be discussed at the constitutional convention and I outlined the Government's position to the House at the time. Perhaps the Taoiseach might clarify the situation. We have had a good 14 months in the 24th Seanad.

Senators

Hear, hear.

There has been good leadership.

If we take into account the usual rough and tumble of politics and differing party policies, there is a healthy working environment in the Senate.

Senators

Hear, hear.

We have, with cross-party agreement, put structure on the sitting arrangements, changed the format for debates, sat on Mondays and Fridays, where necessary, and created a public consultation committee. It constitutes a strong addition to the overall committee system and brings the Seanad closer to the citizen. I thank the Taoiseach for taking the time to debate with us this morning and I look forward to welcoming him back to the House again in the near future.

I welcome the Taoiseach to the House today. I wish to raise two issues. He will know that I am a former Member of the European Parliament where Members had one minute of speaking time, so I try to stick to that here. Having listened to the Taoiseach's presentation I know that 175 events have or will be organised for our six-month Presidency. My colleague, Senator Cáit Keane, asked me to suggest that we co-host a conference on the issue of renewable energy, energy efficiency and the strategic energy technology plan. She has just returned from a conference on it in Brussels organised by EUFORES, a group of people from the European Parliaments and all of the parliaments across Europe. I ask that we co-host a conference on it during our Presidency in 2013.

I join the Leader and Senator Thomas Byrne in their call to better utilise the Seanad by scrutinising European legislation. I can confirm that there were 18,167 regulations and 750 directives issued by the European Commission over a six year period. That is the volume of legislation and regulation at a European level. Earlier the Leader identified that we only have an eight week window of opportunity to scrutinise it. We will commence our holidays this Friday but what legislation will be processed during the eight weeks that we are on holidays? Should we be involved at an early stage? There are procedures in place. Protocols 1 and 2 of the Lisbon treaty, in Articles 4 and 6, clearly sets out the role national parliaments have in dealing with European legislation. We do not use that role effectively.

Senators

Hear, hear.

I was one of the first people here, having served at European Parliament level, to ask for a change in how we deal with European legislation in both Houses. There is an opportunity for the House to be used in an effective manner to monitor and examine the agenda of the European Commission in order that we can flag what is coming down the road at an early stage. Both issues should be taken on board.

Senator Colm Burke took some of the time allocated for Senator Paul Coghlan.

That is all right as I shall be as quick as ever. I salute the Taoiseach's valuable work at European level despite difficult times and with the recession persisting. I hope that the Irish Presidency in 2013 will bear further fruit. In his address the Taoiseach stressed two important points, namely, the irreversibility of Europe's currency union and breaking the vicious circle between banks and sovereigns.

Since the collapse of Lehman Brothers in September 2008, banking practices have been totally suspect. Does the Taoiseach envisage that we will have a banking inquiry? Recent events involving Barclays Bank in Britain do nothing for our confidence in the system which needs further reform and greater transparency. The fiddling and manipulation of the London interbank rate and business related to mortgages, personal lending and commercial lending was horrific. God forbid that anything like that would happen in this country.

Are there contingency plans for our currency should the euro come under further threat? As the Taoiseach said, the difficulty is that the markets do not believe. The Taoiseach believes, as I do, that the euro will survive. The 17 member states have such a vested interest that one must always ensure that whatever it takes, the euro survives. If the eurozone were to break up, if Italy and Spain could not afford to fund themselves, if their bond yields did not fall, what would the position be?

We wish the Taoiseach every success.

With the agreement of the Chair I wish to share my time, allowing Senator Zappone two minutes and Senator O'Donnell one minute.

On behalf of the Independent Members whom the Taoiseach nominated to the Seanad, it is an honour for me to warmly welcome him to the Seanad. There are many issues I would like to raise on the question of reform, but today I will limit my comments to No. 1. I hope the Taoiseach will be able to join us in this Chamber in the near future to discuss other pressing issues.

As the Taoiseach said, January 2013 will mark several milestones in our relationship with the European Union. It coincides with the 40th anniversary of Ireland's accession to the EU and it will be Ireland's seventh Presidency. Ireland is considered an old hand with a very good track record. We have a good reputation to maintain. After our Presidency in 2013, the date of the next Presidency is unknown but it will be at least ten to 20 years before we assume the role again. The rotating Presidency is always an advertisement for the country in question. A good, able, competent, successful Presidency is what the Government should be aiming for and I believe the Taoiseach outlined that in his speech. Coupled with our approach to host events on a cost-effective basis, this will contribute to our reputation as a leader and negotiator. I am involved in attracting and encouraging several conferences and events, particularly from the European economic and social committee. As a former member of this committee, I am encouraging them to host some of their activities in Ireland during 2013.

I believe the introduction, under the Treaty of Lisbon, of a permanent President for the European Council was a welcome innovation. I believe that Herman Van Rompuy has been doing an excellent job in very difficult circumstances. However, the six-monthly rotating Presidency still matters, particularly with regard to the legislative rhythm of the Union and with a range of important policy areas remaining with the rotating Presidency. Unemployment, especially youth unemployment, economic growth, debt restructuring, agriculture and fisheries and climate change negotiations are just some of the issues that I believe our Presidency can focus on to garner support at home.

Ireland's Presidency will be particularly significant because it will be the first of the new T5 Trio. Lithuania will follow in the second half of 2013, and in first half of 2014, Greece will host the Presidency. They have to agree a three Presidency programme. It is good that an old hand such as Ireland will be getting the T5 Trio Presidency under way. It is apt that this Presidency will bring together some of the smaller member states with some of the more troubled economies. The Irish Presidency should therefore be putting its weight very firmly behind any and all initiatives that will foster growth and employment and, above all, push hard on the Europe 2020 strategy. Coupled with growth, we need to put a strong focus on the wellbeing of citizens.

The Irish Presidency as the Taoiseach said, may inherit some hot potatoes, if they rumble on beyond the Cypriot Presidency, for example, the negotiations on the multi-annual financial framework and the vexed issue of the reform of EU staff regulations. I know we must deal with reform at home but this is a major issue at EU level. It is also in the nature of rotating presidencies that there will be unknown unknowns. I believe Ireland has the diplomatic and political machinery and long-standing experience to deal with such issues effectively.

As the European Union continues to develop, we need to be absolutely clear when it is most appropriate to take decisions closer to the people affected, that is at national or local level and in other cases, when it is best to take action at EU or global level. We need to examine further the balance of competencies.

Our Presidency will also coincide with the European Year of Citizens 2013. For citizens it should be seen as a chance for Ireland to have its voice heard. Ireland's position as President of the Council can steer the EU's direction back on to the original path of the Community, where all voices, no matter how small, were heard equally, where understanding and promotion of diversity and culture and ideas is to the fore. Popular sentiment has turned sour. This is a result of the perceived shift of political power to the centre of Europe and to nations such as France and Germany, which are seen now as the drivers of the EU project.

The Irish EU Council Presidency team must work hard to ensure that the 2013 agenda focuses on those issues that most affect the Irish people and EU citizens if it is to generate engagement and support for the EU, as I am sure it will. I believe that some prime examples where Ireland should focus its attention are growth in jobs, advancing the digital agenda, strengthening EU-US trade and economic relations and promoting competitiveness through enhanced research and development and innovation.

I wish to highlight how we need to pay greater attention to the development of the 12 key actions identified to revive the Single Market. These 12 drivers for growth, competitiveness and social progress include financing for small and medium-sized enterprises, consumer protection and the digital single market. I believe they have the potential to give new momentum which will significantly benefit businesses, workers and consumers. As the Leader, Senator Cummins, outlined, the role of this House could be to scrutinise some of those proposals that will come forward in October. I strongly believe that Ireland can play a leading role around the digital agenda and use it to showcase globally our preparedness for innovation and our potential role as a trail blazer.

I now hand over to my colleague, Senator Zappone.

I welcome the Taoiseach. Europe 2020 on a smart sustainable and inclusive European economy and society specifically calls for fresh thinking and social innovation as a way of revitalising our European social model. I would like the Taoiseach to consider two options during our Presidency that would mark a very visible contribution to renewing the European social model into the future, thereby complementing our economic leadership as outlined in his speech.

My first suggestion relates to disability. As the Taoiseach knows, the EU in addition to its member states, has ratified the UN Convention on the Rights of Persons with Disabilities. This is as unprecedented as it is welcome. It calls for concerted action at EU level as well as member state level over the coming years. One of the big problems in Europe today is the institutionalisation of people with disabilities, estimated at over 1.5 million. We have done much to begin the transition away from institutions into community living. The HSE commissioned a report on the living arrangements of those with disabilities entitled Time to Move On from Congregated Settings which has been lauded around the world.

Our Presidency will coincide with finalising the EU regulations for the next programming period of the EU Structural Funds. In the past these funds were often misused to construct new institutions, using our tax money across Europe. This must end. More importantly, innovative and positive ways have to be found to harness the Structural Funds to ease the process of transition to independent living and community engagement around Europe. I urge the Taoiseach and his colleagues to give consideration to a high level ministerial meeting on achieving community living through the appropriate use of Structural Funds. In doing so, Ireland would move a constructive agenda forward that will help achieve the goals of the UN disability treaty in Europe. There may even be an opportunity to learn about and build on the establishment of the US federal administration for community living by the Obama Administration as a way of harnessing federal resources to achieve community living for disabled and older people in the US.

My second suggestion is related but separate. The Europe 2020 strategy mentions grand social change happening in Europe. There can be no greater social change across Europe than the rapid ageing of our populations. We in this House held a series of hearings on this topic through the Seanad Public Consultation Committee. We know that Ministers are planning a positive ageing strategy for Ireland, which is welcome. We welcome the European Year of Active Ageing. There is a need to anchor these positive steps in something more tangible. The United Nations is currently considering a new treaty on the rights of older people. There has, as yet, been no open and inclusive European-level debate on whether this would be a positive step and how this process might be supported. I suggest an Irish Presidency event focusing on the added value of such an instrument. It could be that Ireland would set in motion an unstoppable process of positive reform at European level and around the world.

I welcome the Taoiseach to the Upper House and am delighted to see him. I feel I should speak because he gave me the privilege of having a voice, as one of his appointees. However, in doing so, he might have a fight on his hands with regard to the closure of the Seanad because I do not think that is going to happen.

I only have one minute but one minute with a powerful voice is worth a mile.

As Ireland is about to take on the Presidency of the European Union, I ask that our capital city and, in particular, O'Connell Street and its surrounds, be restored as a European city scape of which to be proud. Throughout the Presidency, we will have reciprocal arrangements, meetings, procedures, travel and tourism between our countries, press, people and our capital cities. In that context, I would like O'Connell Street, in the great city that is Dublin, which boasts monuments to emancipation, liberation, literature, culture, music, art, drama, the workers and the great Father Matthew of the temperance movement, to be restored and remain thus and not become a monument to the menace that our city has become.

Tá fáilte roimh an Taoiseach. I am delighted to welcome the Taoiseach on behalf of the Labour Party in Seanad Éireann. It is very timely that the Taoiseach is here during our last sitting week. He is welcome to come again and indeed, we hope he will be a more regular visitor here. We also thank the Taoiseach for his very comprehensive update on developments at EU level and, in particular, for informing us of the very positive recent developments at the European Council and summit meetings at the end of June, where we saw great progress being made, both on the growth and jobs package and also on steps to be taken to break what he rightly described as the vicious cycle between banks and sovereign debt. We are all very glad to hear the Taoiseach say that he anticipates an early resolution to that vicious cycle. Can the Taoiseach say when he expects that to happen? I know that the autumn has been mentioned but we all very much hope that real progress will be made on that issue before we take up the Presidency on 1 January 2013.

It has certainly been a hugely eventful year at EU level, as illustrated in the Taoiseach's speech. It has also been an eventful year for Seanad Éireann. As Deputy Leader, I must echo the comments of the Leader of the House, Senator Cummins, in saying that in this 24th Seanad, we have taken great steps to make substantive changes to our own internal procedures to make us a more effective and dynamic House. We have achieved that through innovative measures like the public consultation committee and our distinguished speakers programme, under which the former President, Ms Mary Robinson, Mr. Maurice Manning and most recently, Mr. Drew Nelson of the Orange Order, addressed the House. We have also seen, with the Taoiseach's appointment of a genuinely independent group of nominees, the emergence of a fifth group within the Seanad which has greatly enhanced the quality of our debate. In keeping with the healthy tradition of the Seanad, we have seen debates on a range of issues, including humanist weddings, wind turbines, Senator Quinn's Construction Contracts Bill, as well as Bills to ban smoking in cars and to change prostitution law. Issues that are not being debated in Dáil Éireann are being debated here on a regular basis. We have also seen very high-quality debates in the House on Second and Committee Stages of various Bills such as the Electoral (Amendment) Bill and several criminal justice Bills. We have become a dynamic and effective Upper House and have performed a really substantive role in the legislative process.

Senator Cummins and others have spoken of how we could play an enhanced role in the scrutiny of EU measures, a proposal I welcome. We look forward to playing our part in the EU Presidency next year. I was glad to hear the Taoiseach say that he hopes that both Houses will be fully engaged in that Presidency over the six months.

I wish to turn briefly to what we anticipate will happen during that Presidency and to end the political broadcast on behalf of the Seanad for the moment, as I know we will be returning to that debate over the coming year. As others have said, this will be our seventh time to take the helm at the EU. It will give us a great opportunity to enhance our reputation because no matter what others might say, there is no doubt it was tarnished in recent years. This Presidency will give us a chance to show ourselves off, at a time of great challenge for the EU generally. As the Taoiseach has said, there will be no Irish recovery without an EU recovery and we must work with our EU partners to ensure that we see such a recovery. We will not be holding the Presidency when the EU expands to 28 states, as Croatia is due to join on 1 July 2013 but we will certainly be working with the 28th state. It is a time of immense challenge as the Union enlarges further and as the institutional changes anticipated by the Lisbon treaty are still being bedded down.

It is very important that we have set out our priority for the Presidency, namely, to find ways to stimulate sustainable economic growth and create jobs. We all welcome the €2.25 billion Irish stimulus package announced yesterday by the Minister for Public Expenditure and Reform, Deputy Howlin, and we also greatly welcome the compact for growth agreed at EU level. We hope to see more detail on that compact being provided during the term of our Presidency.

Our Presidency will mark the 40th anniversary of our own accession to the EEC, as it was then, and we should use the period to make positive changes and to make progress on issues in which the EU has already brought about great progress, including womens' and workers' rights and the environment. We have spoken about the need to engage with people across Ireland on this and we also need to see tangible progress being made on those issues, while retaining our priority focus on jobs and growth. The introduction of climate change legislation, in keeping with the progress at EU level on climate change, would be a great benefit from our Presidency.

Tá fáilte roimh an Taoiseach. I echo the sentiment expressed by others regarding the remarkable disconnect between the politics of Europe and national politics. I would proffer that a more informed public understanding of the European Union would be gained very quickly if a reformed Seanad took on scrutiny of European legislation. This would ensure a more coherent dialogue and debate about European matters which in turn would bring Europe centre stage in our lives, where it undoubtedly belongs, as is evidenced in the work that the Taoiseach has been doing and in the work that has been done over the 40 years since we joined the union.

We all look forward to Ireland taking the Presidency of the European Council and much hard work is being done in preparation for the role. Our officials will have a key role to play in signing off on vital Common Agricultural Policy, CAP, reform. The Taoiseach will have a key role to play in ensuring that the new rural development programme under the CAP and this Government's allocation of the rural development funding will properly and fairly support all Irish farmers, whose role in our economic recovery is vital. Strong farmers create a strong food industry and in that context, the Taoiseach has acknowledged today the importance of exports to our financial recovery. That debate will take place over the next six to nine months and I trust the Taoiseach will be supporting the role of farmers and the role played by rural Ireland in enhancing all our lives.

While we welcome the potential breaking of the link between sovereign and bank debt it ultimately must bring relief to ordinary workers who have been caught up in this crisis and it must bring support for the most vulnerable in our society and we must not lose sight of that when we talk about it in a rather abstract way. That break surely has to bring, as quickly as possible, some relief to workers and support to the vulnerable.

The Taoiseach spoke about restoring our reputation and bringing back its shine in Europe. In that context, I ask him to ensure that our cultural institutions continue to operate at arm's length from Government as they seek ways to work more efficiently because our cultural heritage marks out our place in Europe. It enhances our standing in the world and our cultural future is rooted in that strong heritage, whose independence must continue to be nurtured and cherished by this Government.

I welcome the Taoiseach to the House. He said that Europe had not been very decisive in recent times in dealing with the economic crisis, which is an understatement. It is quite clear that Europe has been seen as being dragged kicking and screaming to the table. Unfortunately, this is not without precedent and in this regard I am thinking of the foreign affairs crisis caused by the difficulties with the break-up of the former Yugoslavia. Part of the price we have had to pay for this indecisiveness is that peripheral economies like Ireland have been picked off like lone dolphins surrounded by sharks by the international markets. It is time for that to change. I welcome what the Taoiseach has said about the strong measures being proposed. The European system need to look beyond the current economic crisis to the next crisis, which could result from issues of ageing or technological sustainability.

The Taoiseach asked for our suggestions. Perhaps the most positive thing we can do during our Presidency is to build a bridge between the core and periphery of Europe. We do not need a football match between Germany and Greece to tell us that distrust has grown between the core countries of France and Germany and the rest of us. During the referendum campaign that distrust and fractured loyalty in our attitudes to Europe was clear on the doorsteps of Ireland. There is a sense that the core countries do not take the interest of the periphery to heart. In the past Ireland has benefited from being part of a strong peripheral consensus. Examples of this included reform of the Common Agricultural Policy and the growth of Structural Funds during the 1980s and 1990s. As a peripheral country, Ireland could play a critical role in the Presidency in rebuilding the bridge between core and periphery. If we are successful, perhaps Spain, Portugal, Greece, Italy and even Cyprus will vote for Ireland in the nextEurovision contest and we might win once again.

Ba bhreá liom fáilte a chur roimh an Taoiseach agus gach rath a ghuí air agus ár n-Uachtaránacht ar an Aontas Eorpach faoina stiúradh. In keeping with the best democratic and inclusive traditions of the Seanad, the Independent university Senators are sharing time equally. I am glad to have an opportunity to welcome and congratulate the Taoiseach. We would have liked the opportunity to congratulate him at an earlier date but we look forward to greeting him again. The various contributions by Senators suggest that even on his own side of the House, Members harbour the hope or expectation of greeting him again when he is re-elected as Taoiseach. The Seanad does not mind being on probation but we do not like being on death row. We recognise that while the checks and balances needed in a democracy often require serious reform, they rarely, if ever, require abolition. That is a shared view across this House.

In outlining his important agenda the Taoiseach hit all the key notes, particularly the idea that Ireland must not be given cause to regret going the extra mile. It is inevitable that the economic crisis will drive much of the agenda of the upcoming Presidency. Given President Van Rompuy's thoughts on greater fiscal and budgetary integration, many of us will expect the Taoiseach to press the importance of allowing Ireland to maintain its own corporation tax rates. However, if the only focus is on economic matters that in itself will create crisis in the longer term because we need to return to a Europe of values and a focus on solidarity, respect for life and the dignity of every person.

Yesterday, I met a leprechaun who gave me a pot of gold and five wishes for the Irish Presidency. The first wish, reputation, was mentioned by the Taoiseach in his opening statement. I have been involved in European affairs in Brussels for years. When we started we were highly regarded but our reputation has since become tarnished. It is interesting to see how our reputation has improved again in recent times. The Taoiseach is doing a wonderful job in maintaining our reputation and the contribution he made today will enhance it further.

The second wish is speed. Since I moved from the business world to the affairs of State I have been amazed at how long it takes to get things done, especially in Europe. The Taoiseach spoke about good faith and good time. That is what I would love to see at the end of our six month term.

The third wish is competitiveness. I believe we can be competitive in Europe but we must recognise that our competitors are the BRIC countries. We must not hinder or damage ourselves in this regard. Ireland is Chair of the OSCE but we do not have diplomatic links with wealthy countries like Turkmenistan, Kazakhstan and Azerbaijan. I hope that at the end of our Presidency people from these countries will know about Ireland and what we can do.

The next wish is the Common Agricultural Policy, which will be renegotiated in two years' time. Ireland currently exports baby formula to one in seven children around the world. We can do marvellous things if the CAP is reformed.

My last wish is the Seanad. I will not repeat what others have said. I believe we can convince the Taoiseach that the Seanad is worth keeping.

This son of a Leitrim emigrant who became a taxi driver in New York is honoured to have the opportunity to address the Taoiseach in this House. I ask him to put one big-picture item on his agenda for the Presidency, namely, a more fundamental investigation of the real nature of the current economic crisis. It is frequently billed as a purely fiscal or financial crisis involving debt, currency policy or unwise decisions on the euro. We are told that when we fix these problems normality will be restored and we will return to the markets. However, returning the markets means creating more debt. Collectively the western community of nations have become heavily addicted to debt. Increasingly the debt is coming from external sources, including China, the Arab world and other asset-rich countries. When we say we want to return to the normalcy of the bond markets, we are like a group of poor families who want to move from the normality of taking our food from St. Vincent de Paul and instead take it from big Vinny, the debt collector down the street. It is important that we reform our economies in such a way that we do not put ourselves in debt to others and, more important, do not place our children and grandchildren in further debt.

It is not long ago that western countries were wholly independent in food, exported energy and made nearly all the world's manufactured goods. That has dramatically changed and even economic powerhouses to which our destiny is linked, such as the United States, have seen their manufacturing sectors become devastated. It is difficult to find an American-made item in a Walmart store and the products in many shops in Europe are produced outside the EU. It is no coincidence that the last country which has a strong and thriving economy is Germany. I ask the Taoiseach to put protecting and developing industry at the top of his agenda.

On a personal level, I wish to raise with him a radical idea that has been proposed in this House and at the British-Irish Parliamentary Assembly, namely, that Ireland set the goal of banning all commerce in tobacco products by 2030.

I wish the Taoiseach every success when he becomes President of Europe on 1 January. People from the west already occupy the post of Taoiseach, Tánaiste, President and Cathaoirleach of the Seanad, and County Offaly barely managed to put its own man into the White House before the western wave of political talent took over.

The Taoiseach will take over a Europe suffering mass unemployment, with rates as high as 25% in some countries. Youth unemployment in Greece is as high as 50%. The Taoiseach addressed this in his contribution. There is a euro crisis but there is no exit mechanism for countries and the bank regulations were hopeless. One-size-fits-all interest rates may not be appropriate and the loss of exchange rate control was a serious impediment. The Taoiseach may have to deflate some egos in Frankfurt and Brussels. The euro was extremely badly designed because we were left without emergency tools to deal with the crisis. I would caution about the Van Rompuy agenda. Let us tidy up what has gone wrong first before embarking on another phase. Europe needs a council of economic advisers, modelled on our own fiscal council, because the crisis has had such a drastic impact on mass unemployment in so many member states. Go raibh maith agat, a Thaoisigh.

As father of the House, it gives me great pleasure to welcome the Taoiseach to the Chamber. He does us an honour by being with us today because he is the duly elected leader of our Parliament. It is my earnest wish that after the next election he may be elevated to membership of Seanad Éireann. The Taoiseach's speech was clear, concise and positive. It was a tonic and the applause with which it was greeted showed that people appreciated it.

I would like to have had an opportunity to debate some things, such as the suggestion that Irish and European law and policy are co-terminous. That is for another day, however, and although it is contentious, it is an interesting idea. I would also like to hear from the Taoiseach whether the special arrangements on the brink of being made for Spain and Italy can be made retrospective for this country. We certainly paid for it and that is unfair on taxpayers.

What concerns me most, however, is that although there is a natural and inevitable emphasis on finance, that should not be exclusive. I am concerned that in 18 pages there was not a single reference to human rights. I say this because I am a member of the Joint Committee on Foreign Affairs. The Department of Foreign Affairs has been renamed the Department of Foreign Affairs and Trade. That is very important but we must not lose sight of human rights. This country has punched above its weight in many areas, but none more so than human rights, including the European Declaration of Human Rights and the establishment of the European Court of Human Rights. We can do it again, so I appeal to the Taoiseach not to lose sight of this.

I have a couple of suggestions to make, including looking at the devastating effect of the ratings agencies and major international financial institutions. They were responsible for this mess, not the Irish government. During the Irish EU Presidency, can we consider the establishment of an international financial court? Such a body could try individuals and organisations for economic crimes against humanity, including the deliberate precipitation of famine for financial profit.

Ba mhaith liom fáilte a chur roimh an Taoiseach. Is mór an trua é nár tháinig sé anseo níos luaithe agus nach bhfuil níos mó ama againn le labhairt leis, ach úsáidfidh mé an t-am atá agam. Fáiltím roimh an athrú treo atá ag teacht.

It seems likely that a significant U-turn is happening with the European Central Bank's policy on senior bondholders. This is something that Sinn Féin has argued for in Ireland and in Europe. It seems the ECB is shifting its position closer to ours. The logic of that position is that taxpayers should not have to bail out unsuccessful gamblers. That is why we welcome the change in direction that seems to be under way at European level.

What does the Taoiseach think of the significance of the statements being made by the ECB president, Mr. Draghi, especially concerning the Spanish banking crisis? What exactly was the position articulated by the Minister for Finance, Deputy Noonan, when this issue was raised? How much political resistance is there and from where is it emanating? How likely is that resistance to be overcome?

Cén buntáiste a fheiceann an Taoiseach leis an athrú seo? How does the Taoiseach see Ireland, in practice, benefiting from this shift? How can the policy of equality of treatment be applied after the fact?

Yesterday, the Joint Committee on European Union Affairs heard from the Cypriot ambassador regarding his country's EU Presidency and its admirable social agenda in particular. Cyprus is focusing on youth unemployment as one of the pillars of its EU Presidency. Will the Taoiseach commit Ireland to a similar socially-centred approach?

Mol an óige agus tiocfaidh sí a deirtear. Tá an óige ag imeacht, na mílte díobh, ar an traein agus ar na h-eitleáin. Cén todhchaí a fheiceann an Taoiseach d'óige na hÉireann i gcomhthéacs na hEorpa? It is clear from the emigration and unemployment figures that the Government is failing to tackle youth unemployment nationally. Does the Taoiseach have any idea how this might be tackled more successfully at European level? Can he make available to Senators a progress report on the action team on youth unemployment, which was set up by President Barroso? What has been Ireland's engagement with that team?

The Taoiseach said he wanted the EU Presidency to be a whole-of-Ireland effort. Senator Leyden mentioned that the reunification of Germany occurred under a former Irish EU Presidency, so maybe we will move towards a reunification of Ireland under our forthcoming EU Presidency.

If not, however, perhaps we could move towards the commissioning of a Green Paper. In the interim, in what way is the Taoiseach planning to co-operate with our colleagues in the Northern Ireland Assembly to ensure an all-Ireland dimension to the EU Presidency? I know that staff will be seconded from the North, which is to be welcomed, but given the obvious mutual interests of, for example, farmers and fishermen North and South, what forums will there be to allow for maximum levels of discussion and input?

An bhfuil sé i gceist ag an Taoiseach an Uachtaránacht a úsáid chun stádas na Gaeilge san Aontas Eorpach a chur chun cinn?

I thank Members of the Seanad for their contributions. Let me start by saying that I feel I am in a chamber of the condemned here. The position about the future of the Seanad is very clear; its fate lies in the hands of the people. The Government, comprising two parties, was elected with a specific mandate. Part of that mandate was to put a referendum to the people on the abolition of the Seanad and that will happen. Obviously, once that process starts, the fate of the Seanad is in the hands of the people. I note the comments that have been made by various Senators in respect of changes to work practices and structures, as well as the analysis they would like to carry out in respect of European legislation. Senators are clearly aware of the steps that President Van Rompuy has set out in respect of fiscal, economic and monetary union. In conducting its own business, the Seanad is quite entitled to reflect on these steps and give its views.

I was interested in Senator O'Brien's comments. The problem we found on entering Government was that there was confusion abroad about where Ireland was heading. Business and investment interests like clarity, decisiveness and a horizon against which they can plan. With respect to all involved, the problem was that there were so many indications or statements of having turned corners and that the garden was in full bloom again, which were not actually true, and they knew that internationally. It caused a sense of confusion which is why, for instance, in the United States people said, "What is your corporation tax rate? Is this going to change?" That obviously arose from the interest of some of our European colleagues at the time in saying that Ireland must increase its corporation tax rate. While foreign direct investment is an essential part and a cornerstone of what we have and what we offer, it was very important to make business understand that it was our decision and that the corporation tax rate was not changing. It takes a while, however, to build up that sense of understanding that there will be no change in that rate.

What I meant by the reputation being damaged was because of confusion about where we were headed. It required me to see to it that Ministers attend all their meetings. They must look at the comprehensive package of who they have to meet on the fringes of the European Parliament and so on. As regards what we are looking for in any negotiations like these, one is not going to set out a figure. What we want for the country is the best possible deal that we can get. As I said in the Dáil, there is no bottom line here, but there is a top line which is the best that can be achieved.

The discussions that were going on with the troika in respect of the promissory notes and the restructuring or re-engineering of our debt were very complex and tortuous. The decision made by the Council to break the link between a sovereign and the banks has added a different dimension to this. That has been clarified by the comment of Commissioner Rehn who said he would like to see this concluded by October. We have had the support of Commissioner Michel Barnier and the IMF's managing director, Ms Christine Lagarde. Yesterday's statement by ECB President, Mario Draghi, following a meeting with the Minister for Finance was significant.

I do not want to tell the Seanad that we have achieved this and that the deal has been concluded. It is very far from it because we are dealing with different perspectives from different governments. It is important, however, that the head of the ECB said, in respect of any deal done for Spain and whether it can apply to Ireland in exactly the same way, that it would be reflected in the outcome of the programme for Ireland that will be concluded. While there has been talk about burning senior bondholders and there was talk of it at the eurogroup meeting, there certainly was not agreement on it. That position is still evolving. The Council meeting I attended only referred to two specific countries in the eurozone — Spain and Ireland. The sentence about equality of treatment was fundamentally important. We are seeking the very best deal for our taxpayers.

Senator Leyden was a former Minister of State with responsibility for trade. I knew the late Mr. Haughey had a direct hand in the winning of the Tour de France, but I was not aware that he had also reunited Germany, which is not a bad legacy to leave behind.

It was during Ireland's Presidency when he was Taoiseach. I did not claim he brought them together.

I understand, of course. I thank the Senator for his time when he had responsibility for trade. I agree with him that trade missions are critical. We have had a number of them in the past 12 months, notably in the area of technology, medical devices, agriculture and so on.

When I responded to the invitation from Vice President Xi Jinping to go to China, some 90 companies signed agreements and contracts for more than €35 million. Such a visit has a great impact and pays dividends. Premier Wen Jiabao was in a position to say that the scientific personnel from China would work with our personnel here on opening the enormous market for Irish beef. We would be the first country from Europe to have access to the Chinese market which would give us an enormous advantage and an alternative to markets we have at the moment. That has been followed by a relaxing of the restrictions in the US also. Our 2020 strategy has clear targets to increase the impact of the agricultural trade in which we are involved and these hold great potential.

I travel the country and visit various firms involved in engineering, technology and software and meet the young people developing our future in the biotech area, genetics, the Internet, robotics, nanotechnology and nano-medicine. This is happening before our eyes and we have the capacity to be involved in the creation of that future. When President Clinton spoke at the investment conference he organised in New York in January, he said that the demographics of this country are the best in Europe and will remain so for 25 years, given our birth rate and the young people coming through. When that is allied to the package on offer here, including tax, talent, track record and technology, it is virtually unbeatable. It is a matter for companies to make decisions as to where they want to invest. Given the creativity of our people we proposed a scheme last October which has now become a reality. Members of the Irish diaspora, which comprises 70 million people, who are involved in businesses considering investing in Europe, are being encouraged to think about Ireland. If there is a change of direction made in that regard, the initiator is rewarded by a direct payment from the State, provided that jobs result. The first of those has arrived with 30 or 40 jobs coming to County Carlow, I believe. The backup in the pipeline of smaller companies from other countries wanting to invest here now runs to more than 100, showing a serious interest in investing in what we have to do here.

The answer to the Senator's questions is that there will be a series of ministerial Council meetings here and also trade missions abroad. I often believe these open doors and can complement what business does. I meet representatives of the America Chamber of Commerce Ireland on a regular basis. When chief executives travel we want them to have access to the evolving decisions taken by the Government to improve and open the doors for business. One of the issues that arose from the Global Irish Economic Forum last October was that we should be far more co-ordinated from a business perspective in the way we view other countries. For years we treated the Asia-Pacific region as a single homogenous region when clearly it is not. China and Japan are as different as Antarctica and Saudi Arabia. While we might have a template for co-ordinating business opportunities, it is important to understand the culture, thinking and tradition of these diverse peoples and to be able to deal with that. We intend to co-ordinate the activities in the different countries through a co-ordinating role for business which will be done on a pro bono basis and will pay its own dividends. I will consider the request to address the plenary session.

Gabhaim buíochas leis an Seanadóir Tomás Ó Broin as ucht Gaeilge a úsáid. Tá líofacht aige. I understand the importance of the Presidency. It has changed in the sense that we no longer have the fleets of limousines because it is all centred in Brussels. However, the nature of the change since the Lisbon treaty makes it somewhat easier for governments not to need to do a raft of these. Up to 12 ministerial meetings will be held here in Dublin because of the cost factor — we do not have the money other countries have to spend on the Presidency.

The question of ratings agencies was raised on a number of occasions. We have been very clear on the issue of a transaction tax. If it is applied globally, it would not put us at a disadvantage when compared with London, Paris or Frankfurt. We have made that point clearly at a number of different meetings. We have difficulties with a number of Commissioners with regard to the transposition of directives into legislation here. I have asked the Ministers in the lead-up to our Presidency to engage with the relevant Commissioners on issues such as habitats, bogs, etc. Some of these have dragged on for a long time and can be quite complex. However, there is no reason Ministers on behalf of Government cannot negotiate and see if solutions can be put in place. They will need to interact with the Parliament during our Presidency in any event.

Senator Cummins raised the issue of youth unemployment. The issue was discussed at the second last Council meeting and Structural Funds have been allocated in respect of it. We have spent all our structural funds. When they are allocated to different envelopes, they cannot be withdrawn from those countries. However, at the end of the process some Structural Funds across the countries remain unspent. It is a question of finding creative and imaginative ways of applying that.

On the issue of youth unemployment generally, it is sad to see people leave. The point is that the JobBridge programme, Springboard or the use of opening the doors for business opportunities is the best way to create employment. Many business people are unaware of the range of assistance available to business. I recently spoke to a person who became unemployed and who by setting up a business and working full time in it can claim back the income tax paid over the previous six years to invest in that business. That income tax could be as much as €100,000 a year. In this case it meant approximately €50,000 or €60,000 to invest in a new business where the person could work on a full-time basis. Much assistance is available but not drawn down and the Government has a challenge in promoting that.

Next year will see the 40th anniversary of our entry into the EEC. There is mistrust between Europe and our people. In the case of Ireland we are far more acquainted with the details of Europe than those in many other member states. That is because many countries ratify treaties and other proposals by way of parliamentary majorities. However, the Irish people are very well versed in those issues and understand the difference between the Council, Parliament and Commission.

Senator Colm Burke spoke about renewable energy, an issue of considerable importance to us. A few months ago I signed a strategic partnership agreement with the British Prime Minister, Mr. Cameron. The Minister for Communications, Energy and Natural Resources has been meeting with his counterpart, Charles Hendry, with a view to drawing up a memorandum of understanding providing that we will be able to sell electricity and energy directly to the British market. The British Government has done an internal analysis on British needs for the foreseeable future, given the change in attitude towards its nuclear programme. Clearly there is a great deal of private investment wealth to be pumped into the renewable energy market, but it is a case of having the capacity and compliance with the regulatory authorities to bring that about. The use of these natural assets has major potential for our country for the next 50 years and is an area the Government is interested in developing.

Senator Coghlan spoke about the irreversibility of the euro currency and that is the position. Many doomsayers were suggesting that Greece would collapse and that people would leave or be forced out of the eurozone. The situation is that European leaders have, at last, grasped the importance of making political decisions and moving on. While we had decisions in the past, the markets did not believe in them and reflected that before meetings were even finished. That attitude has now changed. While there is a difficult road ahead, given the scale of the Spanish and Italian economies and the difficulties of a number of countries, Ireland is now seen as a small country in a very challenging position, but one which is making steady headway towards a point where it can retrieve economic independence.

The Senator also asked about a bank inquiry. I have read the report of the Committee of Public Accounts and we also have an Oireachtas Committee on Finance, Public Expenditure and Reform. The Government also has the opportunity now to reflect on whether there is a need to set up another new committee. I answered questions on this issue in the Dáil yesterday. I find it extraordinary that in the run-up to the point where the Government made its decision in respect of the bank guarantee, there is no evidence in my Department of any of the delegations that came to the Government or of what was said or the rationale applied to the decision. I made the point in the Dáil that if one met the community council from, for example, Clonakilty, people would be taking notes so that what was said would be on the record for the future. The Government wants to reflect on the issue of an inquiry so that it does what is right. While it is fundamentally important to understand what happened, we do not want a situation where we make a decision and go down the wrong road of interminable inquiries which lead nowhere. I must respect the decision which the people made last year when asked the question about whistleblowers. The question was rejected. It would have made it easier for the Government or for any Government to have an inquiry of this nature.

The point made about Van Rompuy's programme is important and this is an issue on which the Seanad could reflect. We will push hard with regard to the 2020 strategy because there is no time to lose and in that sense it is a case of moving on constantly with difficult choices. We have to make our way while at the same time having other leaders regard Ireland as a country that is not afraid to make political decisions and where its people are moving towards better opportunities and better days ahead.

I refer to Senator Zappone's comments about the UN Convention on the Rights of Persons with Disabilities. A deal of work is ongoing in this regard and I will provide the Senator with further information later. I have already referred to the Structural Funds. Ireland has used these funds wisely over the years. Senator O'Donnell spoke about O'Connell Street. I know that Senator Sheahan also commented on this matter recently. A part of O'Connnell Street, at the side of the GPO and down through Moore Street, is the subject of some discussion. This area contains the houses in Moore Street which were occupied by the leaders of the 1916 Rising. While the buildings in that locality are all part of a planning application, the Minister for Arts, Heritage and the Gaeltacht is responsible for national monuments and the houses in the centre of Moore Street are designated as a national monument. The decision about the overall development which impacts on O'Connell Street has been referred to by the Senator. I would like a situation where the principal street of the principal city is cherished by our people and is regarded internationally as being a place of perfect safety where our independence was achieved at the start of the 20th century. Ireland was one of the first small countries to achieve independence at that time.

I take the point made by Senator Bacik in respect of the progress being made on the deal. On the question of when it will happen, Commissioner Rehn says he would like to see it concluded by October. The IMF needs 12 months notice in cases where it provides financial assistance to countries in its programmes. The work with the troika and the meetings with the Minister for Finance and Mr. Draghi will continue right through to September. It is hoped a conclusion can be reached in October but I would like to see it before the end of the year so that arrangements can be made for 2013.

I note comments about the role and the future role of the Seanad. The climate change legislation will be dealt with by the climate change committee. The Minister for the Environment, Community and Local Government, Deputy Hogan, presented his report on climate change. This is a challenging area for us. Yesterday the Cabinet committee heard presentations from the ESB on a range of programmes. Senator O'Keeffe asked about reform of the CAP which is a fundamental issue for Ireland. We have a view about protection of the family farm concept and the rural development programme. It is interesting to note that many countries in eastern Europe have a very different attitude in terms of the single farm payment based on acreage as distinct from productivity and this would have a serious impact in the case of Ireland. However, there cannot be CAP reform without the multi-financial framework or the budget being in place. This determines the amount in the fund. The battle which Ireland must face will be to retain the elements of the CAP and reform it in a way that rewards productivity and work without destroying the fabric of the rural programme.

Senator O'Keeffe also referred to the reform of the cultural institutions. No institution should be above analysis. We respect the creative and imaginative work of our people in so many areas. We expect to host a Davos forum for the creative arts, so to speak, in 2014 which will have extraordinary potential for expressing the personality of our people. No institution should be above analysis with regard to effective expenditure and results. The Minister for Arts, Heritage and the Gaeltacht will present his programme to the Government shortly. I refer to the suggestion about building the bridge between the core and the periphery and I appreciate that important point. However, it is also a case of communicating Europe to the citizen. We have been far more effective at doing this compared to many other countries where Europe is regarded as being very distant. Our people clearly understand the relationship between Commission, Parliament and Council.

Senator Quinn mentioned a number of specific areas which are important and these relate to the speed of decision-making and the political follow-through. I like his comment about competitiveness. We have come back into the global top 20. I will endeavour to arrange a ministerial Council meeting on competitiveness to be held in Dublin to be chaired by the Minister, Deputy Bruton. This is a very important area in a European sense and is even more important for an exporting nation such as Ireland. I have stated on many occasions that my ambition is for Ireland to be seen by 2016 to be the best small country in the world in which to do business. We are number one for productivity and flexibility and for availability of skilled labour. We have a number of other challenges, one of which is competitiveness.

Senator Crown favours the banning of all commerce in tobacco products by 2030. These issues are a matter of concern for the Minister for Health who is also a medical doctor. He recently put forward a Bill providing for the banning of smoking in cars which contain vulnerable children or anybody else who might be caught in that regard. I am not sure who big Vinny is or about the reference to taking the food from the Society of St. Vincent de Paul and going down the street to big Vinny. In that regard, employment and business opportunities are the way forward and we have worked hard to try to open those doors and will continue to do so.

Senator Norris made a point about human rights. I understand his point and I will convey it to the Tánaiste when I have the opportunity to speak to him. I am not sure that there will be an international financial court to try persons in banking but if we could start with having a workable and credible facility here, in terms of finding out what happened, we might get to know more of the truth. In so far as prosecutions of persons who might have been involved in criminal activities in financial circles or banks in Ireland are concerned, a great deal of information has been sent by the Director of Corporate Enforcement and the Garda fraud squad to the Director of Public Prosecutions. The office of the DPP is utterly independent and is obviously assessing that information with a view to considering whether action will follow.

It is possible internationally after Nuremberg.

Senator Reilly raised the issue of emigration. Nobody likes to see young people leaving. Up to 90% of young nurses go abroad. The issue of agency workers and the changing of rosters is one I would like to see addressed so these young people do not have to leave. Clearly, some leave to gain experience in their work and they return with enhanced experience. The people I feel sorry for are those who feel hopeless and see no option but to leave. It is those young people whom we must inspire and motivate and to whom we must prove, through political decisions, that things can be better for them here at home.

In respect of Northern Ireland, we have appointed a person from Northern Ireland to the permanent representation in Brussels so there will be full acquaintance with the issues, trends and the discussions taking place about the Presidency and our place in Europe. That is much more meaningful than what applied in the case of Northern Ireland in previous terms. I do not think that facility was made available when Britain had the Presidency. However, we want to keep people fully informed in an all-island sense and we are working very closely with the Executive and the Assembly on these matters.

I thank the Members for their statements and I thank you, a Chathaoirligh, for the opportunity to make my remarks.

Top
Share