Speech by An Taoiseach Enda Kenny TD -Two years in Government

Two years ago, the Irish people gave Fine Gael and the Labour Party a clear mandate to take the necessary decisions to achieve economic recovery and get Ireland working again.

We inherited then a country and economy in deep crisis. Ireland had just been forced into a bailout arrangement. The public finances were out of control. Banks were on the brink of collapse. Jobs were being decimated at an alarming rate. Our international reputation was in tatters.

Since then, the Government has been working with the Irish people to implement our agreed plan for economic recovery.

I believe that Ireland is now heading in the right direction.Our plan is working.

People’s hard work and sacrifices are beginning to pay dividends. Ireland is rebuilding its reputation, restoring its confidence, laying the foundation for a better, brighter, more prosperous future.

The second annual report published today sets out the progress the government has made in the past year. It shows that the government is working hard on its implementation. That it’s reforming, legislating, delivering on its commitments to the Irish people.

Just two years in, two-thirds of the commitments in the Programme for Government have been progressed satisfactorily. Because they have, stability is returning. We will continue to work with that hard-won stability to sustain our ambitious but realistic agenda.

For the first time since 2008 the total number of people in employment has risen slightly. In the three years to March 2011, over 250,000 private-sector jobs were lost. The devastating shock of unemployment cannot be underestimated. However, in the last 15 months, the jobs haemorrhage has stopped. In that time, the private sector has created on average over 1,000 new jobs a month.

Making Ireland the best small country in the world for business by 2016 is vital to create the jobs, the opportunities our people need, demand and deserve.

So we can make this vital transition, to an economy based on exports, enterprise and innovation. A transition driven by our Action Plan for Jobs.

The 2012 Plan had 270 actions. 92 per cent are completed. We’ve just launched the Action Plan 2013. We made sure to protect our 12.5% rate of corporate tax. We cut employers’ PRSI.

In 2012, new job-creation from foreign-direct investment reached a decade high. Exporting companies reported their highest jobs-gain since 2006. For jobseekers, we created almost 30,000 new education and training places. We launched Intreo, the new, one-stop-shop employment and support-service. We kept that crucial promise not to increase taxes on work and income.

Yes – there are still too many of our people who cannot find a job or face leaving Ireland in search of work. That is why the creation of jobs is the core priority of this government.

In the past two years, Ireland’s international reputation, once in tatters, has been restored.

Consolidating the successes of the first renegotiation of the bail-out agreement, liquidating Anglo Irish Bank and Irish Nationwide, and abolishing the promissory notes, have further reduced our borrowing costs.

The bank-guarantee has ended. Further stakes in the banks have been sold.

The correction of the public finances is on track. Most of the fiscal consolidation is complete.

Borrowing is on-track to fall to below the 3% of GDP target by 2015.

This new stability and confidence has been hard-won. But it has paid off, with long-term Government-bond yields now at less than 4%, coming down from a high of 14% two years ago.

Now we must build on this new stability to get Ireland working again.

Despite our acute economic difficulties, we’ve worked to protect the most vulnerable.

330,000 of the lowest-paid have been exempt from the USC.

We enacted new, personal insolvency legislation to help distressed borrowers reach a settlement with their lenders and remain in the family home.

We’ve ensured a fair contribution from everyone to this national effort by increasing taxes on capital & wealth and by eliminating tax loopholes.

We’ve been overhauling the political system to make it more effective and efficient. To make sure politicians across the political sphere share in the sacrifices being made by the people.

The number of Dáil working days are up by 30%. We’ve cut politicians’ pay and expenses. We’ve further reduced the cost of Ministerial transport and use of the Government jet.

Landmark constitutional reform continued with the passing of the Children’s Referendum, and the work of the new Constitutional Convention.

We’re radically reforming local government to render it more efficient and effective, cutting the number of councillors by over a third.

Despite the necessary budget cuts, we’re protecting education, health and other key-services by cutting costs and waste.

We secured significant new agreements with hospital consultants and the pharmaceutical industry to lower costs enhance health services.

The Special Delivery Unit has continued its success in further reducing hospital trolley and waiting times in 2012.

Equally, we have progressed vital capital projects with the opening of the new 34-bed Cystic Fibrosis Unit in St Vincent’s Hospital and the decision to locate the new National Children’s Hospital at the St James’ Hospital campus.

This Government stands by and on its record after two years in office.

Ireland is certainly holding its own.

Now we need to move from stability to jobs and growth.

Economic recovery is all about work, all about jobs.

This year, we’ll continue to rebuild and restore our country, making sure our plan brings real and positive change to people’s lives.

We will continue to grow the economy to generate jobs. There will be an unrelenting focus on implementing the 2013 Action Plan on Jobs.

We’ll enact new legislation for NewERA and the Strategic Investment Fund to finance new projects in key, strategic sectors.

We’ll develop an enhanced Pathways to Work strategy to make sure that new jobs go to people on the live register.

We’ll do more to accelerate a solution to the mortgage crisis so that as many individuals and families as possible are offered sustainable solutions.

We will continue to deliver further political and constitutional reforms with an Autumn referendum on the abolition of the Seanad.

Our main goal in the next year is to successfully exit the IMF-EU programme, while sticking firmly to a path of reducing borrowing and debt to sustainable levels. This is essential to sustain investor confidence.

We could have done none of this without the patience, the sacrifice and the support of the Irish people.

Yes – there are still challenging days ahead.

But I’m absolutely certain that together we can build on the progress we have made.

Together we will get Ireland working again.

ENDS