Dara Calleary (Mayo, Fianna Fail)

I welcome the opportunity to speak on the stability programme update. It is nearly a year since the Greek deal, followed by our deal and this week the Portuguese deal. Throughout that year regardless of our specific situation one gets the impression that there is no European-wide response to the contagion facing the eurozone. There is a sense that the rules of the game are being made up as we go along. Next week there will be a meeting of finance Ministers. Given that we have Europe day on Monday and as it is now a year since the first bailout, I hope we start to draw a line under the confusion of policy there has been in the ECB and Commission response to this. The sooner we can do that the sooner we can bring the stability Deputy Twomey mentioned to our national debate rather than what is happening at the moment whereby we are waiting for the possibility of the interest rate to be reduced.

Regardless of how frequently the Government or any Minister reiterates the fact about our corporation tax, there is still a doubt over it. There is considerable doubt and fear among multinationals here not so much about the corporation tax but about the common consolidated corporate tax base and the lack of any direct response from Government on the issue. We need to draw a line under that issue and be absolutely clear in that regard.

As has already been announced, the document published this week commits the Government to a comprehensive review of expenditure, which is welcome. There was a discussion about committees on the Order of Business this morning. This morning's excuse over the delay in setting up committees was that we had to wait until the Seanad elections were completed. There is no more important committee to be established than the one on finance so that the comprehensive review of expenditure can be debated within and articulated through the committee structure. I say to Deputy Twomey that if people have ideas, that is the forum within which they will be discussed. A comprehensive review of expenditure in our current state should focus on those areas that create and sustain employment. Those expenditure areas that can be linked to job-creation and infrastructural projects should be prioritised in the context of that review. The Government will get support for such an initiative.

While I know it is the responsibility of the Minister, Deputy Howlin, perhaps the Minister for Finance might get an opportunity to outline the process for this expenditure review. Will it be an entirely internal Government process? Will it involve the Oireachtas committee system? Will it seek the view of members of the public? Many people have good ideas and as Deputy Donnelly said, now is the time to get everybody on board and put a good team together on the issue.

The original programme committed to a review of a number of issues that are causing serious competitiveness problems in the economy. I understand the Minister, Deputy Bruton, has received a copy of the report into joint labour committees and the various restrictions they place. I had understood that the reform of joint labour committees and everything that goes with them was to have been part of next week's jobs initiative, but it now seems that will not happen. I ask the Minister to update us on the matter. The original stability programme made considerable commitments to the reform of the legal system and reform of many areas of the economy that are in need of reform and are anti-competitive. There is a lack of detail as to when that will get under way. I do not have as rosy a view of activity in this area in the so-called first 100 days as does Deputy Twomey.

The Taoiseach has made several commitments to Dáil and constitutional reform to allow for an inquiry into the issues that led up to this. If we are to have a constitutional referendum to reverse the Abbeylara judgment that process needs to get under way immediately so that the proposals can be teased out. One presumes that if we are to have a referendum as soon as possible, the presidential election in October would present an ideal window of opportunity. There are only a few months to do that, which is another reason to get the committees established as quickly as possible so that we can tease out the implications of the judgment and address them. Once a referendum has been approved in terms of giving the powers back to this House, an inquiry into all the events surrounding this matter can get under way as soon as possible.

Deputy Twomey is the latest in the chorus to claim we are constrained by the straitjacket left by the previous Government. If the Deputy thought he could, he would probably try to pin responsibility for the kidnap of Shergar and several other incidents on the previous Government. The zeal of some of his colleagues in their conversion to the deal is striking. Yesterday the Minister, Deputy Burton, criticised Members of the Opposition for talking about default and for running down the country. Those of us who have listened to her for the past four years - this is the lady who described Ireland as banjaxed - found it one conversion too many. People have fears about the deal and not everybody fully understands why we are not burning bondholders. It was a policy signed up to by members of the Government and was used as a rallying call during the general election campaign. People now want to know why it is not possible. We are not all financial experts but we need that information to be put forward as clearly as possible. If Members of the Opposition want to ask questions or give views on that matter, they should be facilitated, at least in terms of the provision of information. They should not be ballyragged for putting forward general policy reviews. I agree with Deputy Twomey that default would be a disaster. The people we are all committed to protecting in this House are those who feel the brunt of it in terms of services and welfare payments. There is a need for intelligent, constructive discussion on our options for the stability programme. It is impossible to have the discussion in this large Chamber. The discussion should be held in committee whereby one could invite experts to make submissions and consider the options in a constructive, business-like manner. A committee could point the way forward by providing answers for people's genuine questions on the stability programme update.

Next week we will begin to see the colour of the Minister's money. He has inherited a big burden, which I accept, but the jobs initiative, which started out as a jobs budget, became revenue neutral. It will be the first chance for the Government to put its stamp on economic policy and to say what it feels. From the leaks that have emerged thus far, I am not overly inspired. It appears the Government is to get rid of the travel tax and do something on research and innovation. There is a considerably large and superb budget for research and innovation and every cent of it is well spent. However, what will it do for those in manufacturing and construction who are now looking for leadership and direction indicating they have a future in this country? During the election campaign, they were told that the Government, within its first 100 days in office, would announce a big jobs budget. The Taoiseach was rolling back from this yesterday and the five-point plan is now a five-point U-turn in terms of jobs.

The Minister for Finance is to make a statement next week. The Minister responsible for jobs will not be involved in the delivery of that statement, or take questions thereon. I hope that what is put on the table next Tuesday evening will offer some sort of direction and roadmap for those seeking employment, and not only for those who are lucky to have qualifications to be able to specialise in research and development.

If we are to abolish the travel tax, let us get the airlines to commit to some sort of jobs initiative. They are not necessarily the easiest organisations to deal with. There is no sense in our cutting revenue off in the hope extra tourists will come to the country. I do not envisage employment being created from the abolition of the travel tax but I look forward to seeing how it will work out.

I genuinely wish the Minister for Finance well. Both he and the Minister for Public Expenditure and Reform, Deputy Howlin, bring considerable experience to the Department of Finance. Nobody in this House doubts that both have the best interests of the country at heart. While I do not agree with Deputy Twomey's reference to an "economic war", we need all our weapons to be finely tuned. We need our army to be fully trained. The way the House is operating at present in the absence of a committee structure is disabling us in this regard. The sooner we have a committee structure, the sooner we can have the required constructive debate.

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