A new social partnership agreement will be a key part of Fianna Fáil's programme for government if it forms the next administration, the Taoiseach, Mr Ahern, said yesterday.
Speaking at the IMI Conference in Killarney, Mr Ahern said that social partnership had helped the State to overcome the deep economic problems of the past and could make an equally important contribution in the future.
"So in the choice between working hard to renew partnership or letting it pass into history, I say we must renew it and, if I am returned to office, I intend to work hard to make that happen," he said.
Despite statements by employers and unions that a new partnership agreement might not be possible or even desirable, the Taoiseach said that indications made to him privately suggested otherwise.
The Taoiseach warned of the danger of a return to the damaging wage/price inflationary spiral and widespread industrial relations instability of the past if partnership and national pay bargaining was ended.
"There is a heavy onus on those who would have us abandon the attempt [to form a new agreement\] - or approach it in a half-hearted way - to prove that the likely alternative would be any better in creating an enterprise-friendly and cohesive environment in which to do business and meet the needs of Irish society," he said.
On public spending, Mr Ahern said that the State faced a choice of maintaining a disciplined policy or returning to a failed approach of trying to borrow and tax its way to better services.
"There are those who seem to believe that your social concern can be measured by the level of your taxes and your spending. I just do not agree with this. All that high taxes and spending ever delivered for us were poor social services and supports.
"At the time when our problems were at their highest, we had our highest levels of taxation and spending. Reducing taxes and controlling public spending helped to generate an entirely new level of resources for policies that matter," he commented.
Mr Ahern said that there were no soft targets for increased taxation. "There are those who think that we can impose major tax increases on businesses and see no impact, but I believe this would be the surest way of killing employment and growth."
The Taoiseach said that Fianna Fáil's proposed National Finance Development Agency had been run past the EU in terms of how it would be dealt with in the national accounts.
On Europe, he said he believed that the Nice Treaty provided the best basis for protecting and promoting Irish interests in an enlarged Union.
"But the Irish people must always be recognised as full partners with the government in the European Union," he said.
"They must be satisfied that new treaty engagements, both now and in the future, respect the sovereign identity of all member-states and also that engagements entered into would lead to no change in Ireland's policy of military neutrality without the people's agreement."
The Republic faced a choice of whether it would continue to be at the heart of the European project or step away to the periphery, Mr Ahern said.
"I passionately believe that we need to continue to be a fully-engaged member in order to protect and promote the interests, aims and aspirations that we hold collectively and individually," he added.