The inquiry into abuse in institutions caring for children was not a break with the past but a facing up to it, the Minister for Education told the House.
"We cannot consider ourselves to have matured into a self-confident and inclusive society unless we acknowledge and deal with the more uncomfortable elements of our past," said Dr Woods.
He added that while society as a whole could benefit from the commission's work, it should not be forgotten that it was for the victims of abuse. "It is a long-delayed opportunity for them to receive the kind of respectful and sympathetic hearing which has long been their due."
The Minister, who was introducing the Bill setting up the Commission to Inquire into Child Abuse, said that it would listen to victims, fully investigate all allegations, except where the victim did not wish for an investigation, and publish a public report on its findings.
"For many of those who suffered abuse in those institutions, and in other places, the need to tell about it, and be listened to in a sympathetic and open-minded way, is an urgent one and is the beginning for them of recovery."
He said confidential and investigation committees would be established. The confidential committee would allow victims of abuse to recount their experience, its purpose "overwhelmingly therapeutic".
He said it was the Government's intention that the investigation committee would have the resources and the legal powers it required. Counselling would also be provided.
The Fine Gael spokesman on education, Mr Richard Bruton, said it was impossible to understand why the commission's terms of reference made no explicit reference to inquiring into the State's role relating to abuse.
"It is the State that is responsible for the legal frameworks that snatched children from their families and for the systems of regulation and inspection."
The Labour spokesperson on children, Ms Roisin Shortall, also called for the role of the State to be examined.
"The failure of a number of Government departments to institute proper and rigorous inspection and reporting procedures at institutions, such as industrial schools or orphanages, has to be investigated."