'We have proven that we can lead and transform this country'

Leader's speech (edited):Good evening members of Fianna Fáil, and to all of you across Ireland who are watching this ardfheis tonight on television. We gather at a landmark moment in Irish history.

We live in a time of unprecedented prosperity. We live in a land where peace is a reality, and no longer a dream. We live in a country that has come from behind to become a world leader in category after category in just one generation.

This is a moment of pride and a moment of purpose. Yes, time to take stock of the distance we have come - but even more to look forward towards the opportunities that lie ahead.

So tonight, I want to talk with you, not about the past and how much we have achieved together; I want to talk about the future, about the next steps forward for a stronger, fairer, greener and even more prosperous Ireland.

Peace

In Northern Ireland, we have worked long, hard and patiently. We have played our part. And we have made a real difference.

Fianna Fáil, this proud republican party, negotiated the Good Friday Agreement. We worked successfully for the ending of the armed campaign and the elimination of weapons. We have promoted policing reform and seen the progressive demilitarisation of Northern Ireland.

Northern Ireland is now a much better place. Now, the next steps forward for peace.

Last November, I said that we would open the last of the Border crossings. That work is now under way. And I said that I would focus on improving access to Derry and Donegal. This week, we reached agreement with the British government on a financial package that includes a major road serving the northwest.

At the recent election, the people gave a clear message. They want the parties to work together in government. Their views must be respected. All of the key outstanding issues have been painstakingly addressed. We must now see the return of shared government and the institutions of the Good Friday Agreement.

The final steps are there to be taken.

Economy

The foundation for peace and progress is our unparalleled economic growth. On this platform of success and stability, it is time now for the next steps forward on the economy. Those next steps, delegates, are grounded in three key principles.

First, the new Irish prosperity begins with responsible government. We are committed to the policy of keeping the budget in broad balance, and continuing to reduce the national debt. Already, the debt has been reduced from 70 per cent of our country's GNP to just 25 per cent.

Our second principle is lower taxes. We have kept our promise on tax over the last decade through both large and sustainable tax cuts and increased tax credits.

Now, the next step forward is a major, costed and affordable tax reduction for middle and low-income families.

Today, PRSI unfairly burdens middle and lower earners. We will eliminate this inequality in a way that is both fiscally responsible and socially fair.

For employees currently paying the full rate we will halve the rate of PRSI from 4 per cent to 2 per cent. We will abolish the PRSI ceiling for those employees. And we will reduce the rate of PRSI paid by the self-employed from 3 per cent to 2 per cent.

To ensure that taxpayers do not pay more simply because of inflation, we will increase tax credits and tax bands in line with wage increases each year. And we will double the credit where one spouse works in the home to care for children, the elderly or the disabled.

And finally on taxation, our next step forward will see us cut tax rates for all.

Fianna Fáil will reduce the standard rate of income tax from 20 per cent to 18 per cent, and the marginal rate from 41 per cent to 40 per cent. These tax cuts will reward work, strengthen our economy and promote social inclusion.

Underpinning all these specific policies is the National Development Plan. Our young age profile and our strong public finances give us a unique opportunity to anticipate emerging needs and to deliver ahead of demand. Implementing the National Development Plan will be our top priority. It will be our next step forward.

Pensions

Five years ago, we pledged to raise the pensions of older people to €200 a week. Not only was that commitment met; it was surpassed. Now, is the time to take the next steps forward for Ireland's pensioners. If the Irish people return us to government, we will increase state pensions to at least €300 a week in the next five years.

Crime

The next steps forward in tackling crime will begin with prison reform. We will extend measures to make prisons drug free.

And nowhere will our "next steps forward" be more visible and direct than in our efforts to combat violence on the streets. Anti-Social Behaviour Orders will be backed up by the establishment of a fully-resourced and dedicated Garda unit to tackle the problem.

We will expand the use of CCTV to all major country towns. We will legislate mandatory jail terms for violent unprovoked street assaults.

And to ensure that these tougher penalties are effective, we will take the most important next step forward to reduce crime by increasing the number of gardaí by 2,000 to 16,000. These 2,000 additional gardaí will be put on the beat to strengthen communities and to deliver safer streets.

Health

Delegates, the health of our people is one of the most important responsibilities we have in government. I could talk at length about the improvements that have been made in health. One hundred thousand professionals caring for one million patients.

Since I became Taoiseach, we have cut waiting times for operations from years to months. And in a single year, the number of people waiting in Accident and Emergency has almost halved.

But in a health service where real progress has been made, real challenges remain.

So, our next steps forward on health will focus heavily on prevention, on keeping people out of hospital and providing better care in local communities nationwide.

We want our elderly to live long, healthy and active lives in their own homes and their local communities. To do this, we will help local and voluntary organisations to establish and run community-based elder care facilities that will provide the social and medical services necessary to support them.

And for our children under five who need occupational or speech and language therapy, we will ensure that any child waiting more than three months for the service can access it automatically through the National Treatment Purchase Fund.

Children

At our last ardfheis, I proposed a referendum on the place of children in our constitution. Fianna Fáil believes that this is an essential next step towards a new culture of respect for the rights of the child. Last month, we published our proposed amendment. Tonight, I pledge that if returned to government, we will put that constitutional amendment to the people.

And building on constitutional change and continuing investment, the next steps forward will ensure that every child has the best possible start in life. We will meet our target of 50,000 new childcare places by 2010 and we pledge that by 2012 every child in Ireland will have access to an affordable pre-school education.

Our commitment to children is clear. From next month, a family with two children under the age of six will get a direct and untaxed payment of €5,840 a year thanks to the increased Child Benefit and the Early Childhood Supplement introduced by this Fianna Fáil-led government.

Education

Fianna Fáil believes that education is the highway to future progress. In 10 years, 10,000 extra teachers have been hired. Thousands of existing schools have been modernised and hundreds of new schools have been built. And 45,000 more third-level places have been created.

Our next steps forward on education will include providing at least 4,000 more primary school teachers. This will ensure that our children are taught in smaller classes.

At second level, we will prioritise reductions in the size of classes in the core subjects of Irish, English and Maths.

An Teanga agus Cultúr

Beo Agus mar Éirinnigh, táimid fíor bhródúil as an muinín nua a bhfuil ag muintir na hÉireann - anseo sa bhaile, san Eoraip agus ar fud an domhain. Anois, tá Fianna Fáil ag iarraidh leanúint ar aghaidh, agus gan filleadh ar na sean laethanta.

Táimid ag iarraidh cur leis an muinín nua as ár gcultúr féin agus an meas nua atá ar ár dteanga náisiúnta.

Ar fud na tíre tá glúin óg ag foghlaim Gaeilge sna Gaelscoileanna.

Transport

Our modern society depends on modern transport. In 10 years, decades of under-investment have been reversed and unprecedented resources committed to our transport network.

Let me be quite specific. In Dublin, we will join the Luas green and red lines; we will extend Luas to Docklands, to Citywest, to Cherrywood, and from the city centre to Liffey Junction.

We will accelerate construction of the interconnector between Docklands and Heuston stations. We will open Metro North from St Stephen's Green to Swords via Dublin Airport, and open Metro-West connecting Tallaght and Ballymun through Clondalkin, Lucan and Blanchardstown.

In the west of Ireland, we will reopen the Western Rail Corridor from Ennis to Claremorris and will launch the Galway to Athenry commuter rail service.

In Cork, we will open the Cork-Midleton rail service. And in Meath, we will open the Navan rail line, first to Dunboyne and then to Navan.

On roads, we will complete the five inter-urban motorways to Waterford, Cork, Limerick, Galway and to the Border; we will complete the Atlantic Road Corridor as well.

We will also complete the Border Road Corridor - along with high quality road corridors to the northwest and the west. And we also will finish the east coast N11 dual carriageway to Rosslare.

Rural Ireland

Our next steps forward for farming communities will invest in new products, new markets and upgrading our food industry. We will oppose any efforts to restrict the live export of animals. And, for farmers, we will work in Brussels to improve the fairness of inspections and reduce red tape. We believe in a future where rural people can choose to stay in their own communities.

Our ambitions for rural Ireland will never be diminished. Our commitment to rural Ireland will never be surpassed.

Conclusion

The next steps forward for Ireland. This is where we stand and this is what we will do. We are the ones who have proven that we can lead and transform this country. The details of our next steps for Ireland are available for all to see at www.thenextsteps.ie

Tomorrow, I will represent Ireland at the 50th anniversary of the European Union. The founders of that union had the vision and courage to take bold steps at a critical moment in history. And the founders of our party were also visionaries. They were called Soldiers of Destiny, and they not only fought for freedom; they worked to create a new nation, a new government, that could move Ireland forward.

It is time to stay the course, to go the distance and to fulfil Ireland's destiny. This is a government that has nurtured peace, that has grown prosperity and that is harvesting a bright future for all.

It is Fianna Fáil who can be trusted with the peace and the prosperity out of which the future of this extraordinary island will be secured.

That is the Ireland we will build, that is the Ireland I believe in, the Ireland Fianna Fáil believes in, if we have the courage to take the next steps forward, and to fulfil the destiny that awaits us.

This is the time. This is the place.

Now delegates - the next steps forward.