Jonathan O'Brien (Cork North Central, Sinn Fein) | Oireachtas source

Everyone knew we would exit the bailout programme at some point and that a decision would have to be made on whether we would go for a backstop. Whether that decision would be taken now or in 12 months was a matter for the Government. It was up to it to weigh up everything that was happening and make an informed decision. It was obviously a surprise for us on Thursday morning to receive an e-mail calling us to gather in the Chamber to hear the announcement, but that said, Sinn Féin agrees with the decision taken by the Government. Our opinion has always been that signing up for a precautionary credit line or a backstop, without knowing the full conditions that would be attached to it, would be akin to a second bail-out. We have seen the damage the previous bailout programme has inflicted on the State and its citizens.

It was astonishing to hear some of the mutterings from the Fianna Fáil benches when they were asking us to sign up for what Sinn Féin believes would have been a second bailout or to hear them suggest that would be in the best interests of the State. How anybody can take seriously anything a Fianna Fáil leader, particularly one who was a Minister at the time the troika came to these shores, is beyond me. It was as a result of decisions taken by the then Government and policies implemented by it in the main that we came to be in this situation. We cannot lay the blame solely on this factor, however, as there were other external factors that led to our economic demise. However, nobody could argue with the fact that it was the way the matter was handled, decisions made and policies implemented that plunged the State into economic crisis. As a result, we have had a number of years of austerity and tens of thousands of our young people have emigrated because of the economic situation in which we have found ourselves. These young people are the highly educated workforce we need to try to regain our economic sovereignty.

It is ironic to listen to Fianna Fáil Members and former Ministers lecture others in the House about regaining economic sovereignty. Many of the measures implemented as part of the troika plan had already been agreed to in Fianna Fáil's national recovery plan. Calling it a national recovery plan is a joke in itself.

Last Thursday I watched Leaders' Questions at the RTE studios and it came across clearly that very tough economic decisions had to be made. No one in the House is under any illusion that the troika has gone home because this is not the case. Our budgetary process will still be scrutinised and we are still signed up to the fiscal treaty with all of its economic ramifications. It is clear that there are still tough times ahead for Irish citizens. The one thing that came out of the Taoiseach's statement, in particular, concerned the short-term economic strategy which would be finalised before the end of the year. It will guide us in the coming 12 months, a time period which will be critical in terms of the economic fortunes of the State. I am not sure what the figures are, but we probably have funding in excess of €22 billion or €23 billion which will probably see us through all of next year at least and perhaps part of 2015, depending on growth rates. After this, we do not know what will happen or what the external factors in Europe will be. We do not know how they will impact on us. We have enough funding in place to run the State next year and for this reason, we believed it was the right decision. The short-term economic strategy which will be put in place will be critical because if it does not work or bear fruit and we do not implement the right policies, we will not see the growth rates we need to enable us to maintain our economic sovereignty and access the bond markets year after year. The strategy will be a key Government policy document and how it is implemented will set out the stall for the coming years.

It will not come as a surprise to the Minister of State, Deputy Brian Hayes, that we will have differing opinions on how the strategy should be implemented. We did not do enough to stimulate the domestic economy in recent budgets and many agree with me. We kept taking money out of people's pockets and perpetuating a situation where people had less to spend in local shops. As a result, local shops were finding it increasingly difficult to meet their overheads. Businesses were closing, as a result of which more and more people sought State assistance through the Department of Social Protection. It is a vicious circle and we need to re-evaluate how we do business in terms of the domestic economy. We must start stimulating it and investing in the small and medium enterprise sector.

We must start to tackle the issue of youth unemployment. The youth guarantee gives us the potential to start to tackle youth unemployment at least. We are debating a Private Members' motion on the youth guarantee this week, but what Government officials and Deputies state about it does not give me any confidence. The International Labour Organization and the National Youth Council of Ireland state approximately €400 million to €435 million is needed to properly fund the youth guarantee, but last year the Taoiseach returned from Paris speaking about a figure of €200 million, two thirds of which will be financed by the European Union. It will probably require approximately €66 million in the next two years, but we have only budgeted for a figure of €40 million this year. I presume the strategy plan which will be published will address some of these issues and we await its publication.

It is important that we instill confidence in the domestic economy. The only way we can do this is by putting money back in people's pockets and having spending power again. Unfortunately, we cannot do this if we keep taxing people. Next year we will have the property tax which will be due for a full year; we will have the introduction of water charges and are taking money from jobseekers under 25 years. If these types of policy continue, we will not have the growth needed next year through the strategy plan to build and maintain the economic fortunes of the State.

Many people are hurting and it is very difficult to hear about some of the hardship being felt. There is no monopoly in hearing about it on the Opposition benches. I am sure every Government and Opposition Deputy week after week in his or her clinic hears about the hardship being experienced. We must start instilling hope. People come to my clinics who, unfortunately, are their wits end and suicidal. I am sure it is the same in the Minister of State's clinic. People come to my clinics who are working full time and trying to pay bills and find themselves accessing the Society of St. Vincent de Paul and other charities. For their sake, as well as that of the State, we must start to implement policies which not only will put money back in their pockets but also give them back a sense of hope and dignity because without these, what are we doing here? What is the function of this Chamber if we are not here to protect and enhance the lives of the citizens we represent?

We await the publication of the strategy which will be a key policy document. We will examine it when it is published and where there are parts to be welcomed, we will welcome them, but we also appeal to the Minister of State to take on board some of the propositions the Opposition has articulated in recent years. The introduction of a wealth tax is not something the Government favours and we have been criticised for even suggesting it, but according to the Minister's own figures in replies to parliamentary questions, he estimates that if we were to introduce a wealth tax based on the criteria we put forward, it would raise approximately €400 million, which would go a long way towards stimulating the domestic economy and easing some of the hardship and burden placed on the shoulders of citizens. I appeal to the Minister of State to think outside the box and not dismiss every proposal coming from the Opposition as harebrained or fairy-tale economics.

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