Comments by Minister Micheál Martin TD at the Fianna Fáil Roscommon/South Leitrim Conference

Over the last two years a series of tough actions have had to be taken to stabilise a situation which threatened to submerge our economy. Every single independent evaluation of these measures, both domestic and international, has said that this is exactly what has been achieved. In relation to national income, the budget and the financial system Ireland has arrested the dramatic decline and now has the foundation in place to push for a sustained recovery.

We suffered as much as any in the downturn, but we have acted faster than any to control the situation. A very clear distinction is now being drawn between Ireland and some other countries in terms of our commitment to long-term action. This confidence has been hard won and it has required a concerted effort to show what is being done here to bring government borrowing down to realistic levels and to rebuild the financial system.

You don’t have to be an expert to see that many economies continue to face major uncertainty. What has already been labelled the ‘Great Recession’ is not simply an Irish or European phenomenon but a genuinely international one. Today there is no greater challenge for governments and their citizens than showing real determination to deal with fiscal and financial crises.

Over the last two years, selling Ireland’s economic message has been put at the centre of our diplomatic work throughout the world. Last week in New York I met with ministers and journalists from many countries who wanted to hear first-hand about Ireland’s prospects. The clear question was will we avoid the crisis of confidence seen elsewhere? The equally clear message to them was that Ireland is absolutely determined to stay the course and complete its programme of fiscal adjustment and financial reform.

We have regularly faced sustained political attacks for taking vital actions over the last two years, but we were resolute and followed them through. Ireland gave its word that it would act and Ireland did act. The very direct link between this and international confidence in Ireland which has helped significantly reduce the cost of borrowing and enable us to move forward with a credible, multi-year programme to fully address the issues. This renewed confidence has also been central to projections which now show Ireland achieving 3% growth next year.

It is only fair to admit that there is a significant political divide in relation to tackling our economic problems. The opposition parties are united only in what they oppose and continue to undertake remarkable contortions in order to avoid committing to unpopular decisions no matter how essential they are.

Labour wanted to stand idly by and let the entire banking system effectively disappear overnight and has consistently called for spending which would destroy our international credibility. Fine Gael has tried to be one every side at once on banking while at its recent Ard Fheis is formally adopted a policy which calls for a major increase on the borrowing levels which have been agreed between us and the European Commission. When faced with the choice between supporting responsible action and being political, they chose to be political. History will record that at Ireland’s time of need they chose to give priority electioneering and opinion polls.

Everyone who cares about Ireland’s future has to be clear on something; just because there have been two tough years and the economy is turning there is nothing to be complacent about. We have to move forward and complete the business of bringing what we spend on public services into line with what we raise in taxes.

I understand that many people hear talk about budget balances and national growth figures and wonder what this has got to do with the problems they are facing? The answer is that the only way we can return to a situation of improved living standards and public services is if we put the economy on a sustainable foundation.

If there is one thing that is becoming more obvious every day, delaying action benefits no one. The short, medium and long-term damage caused by failing to follow-through with tough action is felt most by people who need the state most. In contrast, tough action which brings stability and growth is the fastest way to return to a situation where increased support can again be considered.

There has been a lot of nonsense talked about the idea that the government has an economic policy but no employment policy, as if it is actually possible to create sustainable jobs while failing to control borrowing and renewing the financial system. It’s also talk which ignores the fact that tens of thousands of training places are being created to help people; that businesses throughout the country are receiving direct aid to protect jobs; that investments are being announced every week to create jobs in high-growth sectors; and that promoting Irish companies and attracting investment has been put at the core of all international activity by the government.

A lot of people have suffered during the downturn and everyone has felt the pressure on their take home pay. In particular, I want to acknowledge the role of our public servants. Because their pay represents a huge proportion of public spending, there has simply been no way of avoiding a significant impact on their numbers and take home pay. I believe that they work hard and are dedicated to service the public, for which they deserve the public’s respect.

The Croke Park deal represents a goodwill effort by all those involved to use the stability which has now been achieved to both protect the income of public servants and implement essential cost savings. If it is implemented it will, I believe, be powerful further message to the world that Ireland has chosen the path of action and consensus to overcome its problems.

The international economic situation is still uncertain, but Ireland has achieved an incredible amount to ensure confidence in its ability to tackle its biggest problems. We must do everything possible to protect this, and continuing to face the reality of reducing the deficit is central to this. If we do this then we can achieve a strong and sustained recovery which will create the jobs we need and pay for the services the public deserves.