First, I should congratulate the new British Prime Minister, David Cameron, and his deputy, Nick Clegg, on forming a government in Britain and I wish them the best of luck in their onerous duties. I pay tribute to the departed Prime Minister, Gordon Brown, particularly for his interest in Northern Ireland and for the work he did there.

For years, Deputy Bruton, in particular, has pointed out the lack of clarity, discussion and debate about the way we prepare budgets in Ireland and that the entire system is a charade where government does its business internally, the budget is presented and there is little analysis or discussion beforehand and no prioritisation of the allocation of money. It is a failure of the House over the years because of Government control that budgets are presented in the nonsensical way they have been presented for many years.

I note that this morning the Minister for Finance gave instructions to Ministers to find within their Departments contributions that will amount to €3 billion of cuts in the economy for presentation in the budget later this year. I also note reports that the European Commission is to publish legislation, which will essentially mean foreign ministers for finance will have first sight of the Irish budget before it is discussed in the House. This would amount to handing over sovereignty and the running of our country to somebody else. Does the Taoiseach agree with this proposition that is being put forward? Has he signed up to this? Is he of a mind to continue in the traditional way where no discussion takes place on the budget beforehand? Is he also of a mind to sign up to a proposal like this, which would be contrary to the Lisbon treaty that many people fought hard for and which would amount essentially to the handing over of sovereignty of the Irish State and the running of Irish affairs to peer groups, depending on their political whim, within the Council at any time?

I wish the former British Prime Minister, Gordon Brown, well. As I said in my statement yesterday evening, he was a good friend of Ireland who showed a strong commitment to the implementation of the agreements of which both his government and ours were co-guarantors and I wish him and his wife and family well for the future. I thank him for his excellent work in many respects. In our dealings with him, we found him to be an excellent colleague to work with. I wish Mr. Cameron and Mr. Clegg well in the formation of a new government and I look forward to meeting the British Prime Minister in due course to build on the good relationships that successive governments have been able to establish between the Irish and British Administrations in recent times in the hope that we can continue to co-operate and work together on items of common interest.

With regard to the matter raised by Deputy Kenny, today's media comments on the EU proposals to improve budgetary policy co-ordination are not based on published EU documents. I do not want to comment further on the specifics of articles in the press. Ireland has laid out a multiannual plan with budgetary targets for the coming years. The plan is to reduce the general government balance to below 3% of GDP by 2014 and it has been welcomed and approved by the EU Commission. Much has been achieved on the public finances as a result of decisive Government action since this issue first arose. We have stabilised the deficit with decisive actions. It would have ballooned to 20% of GDP had we not taken the actions we took since coming into office. Fiscal discipline is an important factor in bringing growth and, ultimately, jobs back into the economy and the prospect of a net increase in job creation is based on us continuing with the multiannual plan that has been implemented.

Last year, Fine Gael suggested the cut should have been of the order of €5.4 billion originally and it should be €3.5 billion for 2011. I note from its latest statement that it is suggesting the cut should be just €2 billion for next year.

Who had all the information for the past ten years?

An Taoiseach, without interruption, please.

We cannot have backsliding in regard to this matter.

The Government had ten to 12 years to address it.

An Taoiseach, without interruption, please.

We have to maintain our credibility at home and abroad and the Government will take the decisive action that is necessary.

The Government had ten years. It was a disgrace.

This is like the Muppets.

That is the reply of a desperate man who is throwing bait that he expects somebody to rise to but I will not do that. The Taoiseach, Deputy Cowen, was Minister for Finance and he is now Head of Government. He has brought our country to an excessive deficit position through gross mismanagement of our economy and a complete inability to have the courage to debate issues in the House, particularly in regard to the presentation of budgets as they affect the running of our country and impact on ordinary people every day.

Article 136 of the Lisbon treaty sets out clearly that in certain circumstances the Council may adopt procedures on the surveillance of budgetary issues in any country within the eurozone. The Commission's proposal is quite opaque and it means the political whim, colour or bias of the Council at any time could influence what is being talked about here. I want an assurance from Deputy Cowen as Head of Government and Taoiseach of this country that in no circumstances will the Government hand over sovereignty of the running of our economy to anybody else who might have a different view. For example, other countries might well be jealous of our low rate of corporation tax which we have all agreed we would maintain and which is directly related to a specific element within the Lisbon treaty. I do not want a situation where others would look at the Irish budgetary preparation before it is ever discussed by Oireachtas na hÉireann and that they would say, for instance, that we would have to make changes in public pay or corporation tax, or adjust matters that might not be to our liking. I seek confirmation from the Taoiseach that, first, he is not going to sign up to something that will hand over our authority to bureaucrats elsewhere and that he is clear about the retention of sovereignty and control over our own economic affairs.

Last year, Fine Gael put forward the view that we should set up an independent fiscal advisory council in the Oireachtas where the Government would discuss the preparations for the budget——

A question please, Deputy.

——priorities for that budget, where moneys might be shifted from one Vote to another depending on agreement on those priorities and leave us in control of our own economic affairs, determining what our budget should be and deciding what should be the impact on people. Can I take it that the Taoiseach does not agree with proposals that would diminish the extent and strength of our sovereignty and our ability to control our own economic affairs? If the Government had managed the economy properly in recent years, we would not be in this mess in the first place.

Hear, hear.

I refer the Deputy once again to the fact that if the Leader of the Opposition is concerned about the need for this country to retain control and manage its own affairs——

Rightly so.

Hear, hear.

——then he should avoid flip-flopping on his basic economic policies about changing what level of adjustment needs to be made to deal with the structural deficit that exists in this country.

We do not need a lecture from the Taoiseach.

This is the man——

This is the man who wanted the property bubble to continue.

Will Deputies please allow the Taoiseach to continue to speak without interruption?

Those are the realities that have to be faced. We are committed to taking the necessary action on the difficult choices. Work is already under way——

The Taoiseach should answer the question he was asked. He should not head off on a tangent.

One speaker at a time please.

In answering the question I was asked, I am entitled to set out the inconsistency of Deputy Kenny's position which flip-flops every couple of months.

The Taoiseach would know about that.

Does the Taoiseach ever answer the question?

Deputy's Kenny's indication in December was that there should be savings of €3.5 billion this year and now he is talking about €2 billion. We will stick to the plans——

He is a ventriloquist.

——that we have agreed. On the question that has been asked by the Leader of the Opposition about economic sovereignty, the maintenance of credibility at home and abroad and to avoid situations that have happened elsewhere, the moves we have made have ensured that we have avoided that prospect. We intend to continue to effect recovery, bring growth into the economy——

You created the mess in the first place.

——and to provide net job creation in 2011.

You caused the mess.

So much for the Minister, Deputy Noel Dempsey, whining about——

I call Deputy Eamon Gilmore. He should be allowed to speak without interruption please.

Is Deputy Shatter the new leader of his party?

He is destroying——

Deputy Shatter, please.

Dáil reform has fallen into a pothole.

Could we have Deputy Eamon Gilmore without interruption?