The 68-year-old Archbishop of Armagh and Primate of All Ireland called on the Irish people to build a more just society based on "a civilisation of love".
Cardinal Brady was delivering his homecoming address Thursday night in St Patrick's Cathedral in Armagh after returning from Rome with his red hat as a Prince of the Church.
"Ireland without the Christian faith will not be a better place," he said.
"This is already becoming clear. Ireland with a humble, compassionate faith could be a beacon to the rest of the world of all that is truly human and truly good."
He told the large congregation that his homecoming ceremony was the occasion for renewal of the Christian faith -- the faith of St Patrick, St Brigid, Columbanus, Malachy and Oliver Plunkett.
The 114th successor of St Patrick committed himself to working for continued peace and prosperity, and he believed that "Ireland and its people, of all traditions and backgrounds, had a critical role to play in leading the world in concern for the poor, in building a more just society and in building the civilisation of love".
Cardinal Brady described the last few days as having being among "the most extraordinary, the most privileged and the most joyful of his life.
"I have been carried along by an immense sea of goodness, by an unending stream of kindness and faith on the part of so many people."
Thanking all the people of his Armagh archdiocese for their incredible kindness, outstanding generosity and invaluable support, he paid particular gratitude to President Mary McAleese, Taoiseach Bertie Ahern, as well as the Church of Ireland primate, Archbishop Alan Harper and all the leaders of Christian churches.
Referring to the explosion of joy at his appointment to the college of Cardinals, Cardinal Brady said he could never fully understand people who approached the question of religious faith as if it were a negative imposition on their approach to life, or a mere collection of prohibitions.
"What brought me to this day was the discovery, very early in life, of the joy of following Jesus Christ," he said.
As a young priest he had learned the importance of taking time to be friendly and neighbourly with people who were going through difficult phases in their life.
"Faith has never been a negative in my life," he added.
"It has been the source of my greatest satisfaction and joy. If there is one thing I have learned with certainty in my life as a priest, it is the importance of the smallest act of kindness, the simplest word of encouragement, the most hidden act of compassion and understanding," he said.
Earlier Taoiseach Bertie Ahern welcomed home Cardinal Daly at Dublin Airport, paying tribute to him.
"As Archbishop of Armagh, he has been a very powerful but understated advocate of peace.'' said Mr Ahern.
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