Speech by An Taoiseach, Brian Cowen TD at the Cairde Fáil Dinner

Posted on 04/12/09 by Brian Cowen

A Chairde, guests and party faithful-

Cuirim céad mile fáilte romhaimh anocht ag dinnéar blaintúil Chairde Fáil.

I am glad to see so many people here, renewing acquaintances with old friends and colleagues, and making new acquaintances and friendships that will last into the future.

Tonight as we gather for a night of enjoyment, we should also be conscious of the many out there who have lost their homes and possessions due to the recent floods. It is especially difficult coming up to Christmas, a time when families should be together in the warmth of their own homes. The Government will be doing all it can to assist in the clean up as the floods recede in the coming days.

We have had a tough year friends. We fought the European and Local elections in the midst of one of the most difficult times for our country. I want to thank all members of this party who went out and campaigned so hard for us. In the final result, we had some excellent candidates elected and we lost others too. I want to acknowledge their efforts and their willingness to serve and say to them- There will be another day.

During the course of the year Government had many challenges to face. We had a supplementary budget to get through to attack the gap in our finances, we established NAMA to help solve our banking crisis and we had a referendum on the Lisbon Treaty. Again I want to thank all who worked so hard on these challenges and especially the civic campaigns who played such a prominent role in achieving the positive Lisbon result.

The passing of this referendum was a great boost of confidence to us and our strategic direction in relation to Europe. This positive statement by the Republic will boost investment and trade relations with our European partners and will build on our positive relationship with the Union and its institutions, which have been so vital to us in this time of difficulty.

A new Commission has been formed and I welcome the addition of Maire Geoghegan-Quinn to that Commission. Her role as Commissioner for Research and Innovation dovetails nicely with Ireland’s Smart Economy plans. Maire will play a key role in Europe’s economic recovery. We all wish her great success in her new role.

The basis for our economic policy now is to get more for less and to use our resources more effectively. We must prioritize spending, we must help enterprise in creating the export based jobs that will help bring stability to our finances.

Next week will see the Minister for Finance deliver his third Budget. I want to thank all members of the Cabinet and the Parliamentary Party for their input and hard work in formulating what is a very challenging piece of work.

We have a clear fiscal strategy which we will continue to maintain.

The 4bn savings we will achieve in the upcoming budget will be a further step in closing the gap between what we collect and what we spend. This 4bn will involve contributions from all sectors of society.

I am very proud of all that Fianna Fáil has achieved in the past in its efforts to improve the lot of people in all walks of life.

Now we face a different challenge, that of a downward adjustment.

At a time when the cost of living is decreasing, we have a once off opportunity to make a structural adjustment in wages and welfare payments while making least impact on real standards of living.

The burden of adjustment will be borne by everyone and the Government will attempt to be as fair as possible in all aspects of the Budget. Steps to be taken both this year and next year will ensure the proportionate contribution by all will be commensurate with their ability to pay.

Obviously, as well as achieving reductions in spending, we have to look at initiatives that will focus on those areas of the economy that can develop and grow jobs and the Minister for Finance will be outlining those initiatives.

We know that we have less room to manoeuvre than before, but this budget will be about investing in the future as well as reducing spending for the coming year.

What we are doing next week is part of a strategy to restore health to the Public Finances, making us more competitive and getting us back to growth quicker than would otherwise be the case.

People expect Governments to take decisions which will make their lives better, even if they are unpopular.

Part of the 4bn savings in this budget will be a contribution of 1.3bn from the Public Service pay bill. We have had intensive discussions with trade unions trying to find an agreed way forward.

I believe this was the right course of action to take. As any employer facing a difficult year would do, it was right and responsible to sit down with staff representatives and see if reductions can be achieved by consensus.

Despite all our best efforts, it has not been possible to strike a deal. But a lot of good work was done during those discussions and broad agreement has been reached on the changes needed. Hopefully this provides the possibility of making progress in all those areas agreed in the future.

I reject the criticism of those that suggest that going the extra mile is a sign of capitulation or weakness.

I believe in discussing common problems with stakeholders on the basis of mutual respect and good faith. Circumstances did not allow us to reach agreement on this matter, on this occasion but I remain of the firm conviction that this country is always better working together trying to devise solutions which we can all agree to. We are better conducting our discussions in a constructive fashion seeking to serve the common good in a mutually acceptable way.

Ireland is a modern country with good people in all sectors of society. Managing change is not easy and those who try the common approach should not be castigated just because they cannot agree an agreed outcome every time.

The problems Ireland faces are real. They are affecting every family in the country. The Government will do its duty in taking the necessary decisions to help this country recover- we will do this as a constant, daily and weekly task.

As Taoiseach of this country, I say again, and I make no apology for it, that my preferred approach is a collaborative approach. I don’t believe in promoting divisive or confrontational agendas. When all avenues are exhausted, we have to take timely decisions.

We live in a small country that has to work collectively to get through these difficulties.

But now, the Government must proceed to implement the adjustments in the Public Sector as we will have to do so in Social Welfare, Capital Expenditure and Departmental spending.

I want to emphasise again that we will do so as fairly as possible and with a view to getting the country back to recovery as quickly as we can.

As a country, we must demonstrate our capacity to manage our own affairs by stabilizing our deficit. From that will come confidence, both internally and externally, that this country is determined to succeed. I ask all our people to join with us in securing a better future for our children and their country.

Go raibh mile maith agaibh agus bainigí taithneamh as an oíche.