Seán Sherlock (Cork East, Labour)

In recent times, November has been one of the best months of the year for the Minister for Finance. Today, of all days, will tell a different story. The serious decline in the housing construction market clearly confirms the continuing fall in Exchequer receipts from taxes such as stamp duty. Exchequer figures for November show that total tax receipts are almost €2 billion behind the target set out in last year's budget. The Department of Finance signalled last Friday that taxes collected this year would be approximately €1.7 billion below target.

What will today's budget bring and what will be the Minister for Finance's priorities for the economy for the year ahead? With inflation running at 4.8% — among the highest rates in Europe — the scope for an expansive budget is limited. The budget is very relevant to the Fine Gael motion. There is not a great deal in that motion with which I disagree. The issues of competitiveness and rising labour costs are key drivers for any economic outlook. The budget will determine whether the calls within the motion will bear fruit.

My colleague, Deputy Penrose, outlined a number of fundamental points relating to the lack of investment in infrastructure and issues of public sector pay. It is true that infrastructural spending in this country is well below par. There may have been serious spending on inter-urban routes such as that between Cork and Dublin, but there are still regional disparities which have not been sorted out. How long does it take a train to get from Dublin to Sligo? If a burst water pipe can turn Dublin's principal motorway into a car park for eight hours, then what can we seriously expect from a Government that is lunging from one crisis to another? There are secondary and non-national roads throughout this island that are rarely travelled by Ministers, and that eminent backbencher from south Kerry himself admitted that if there was a pothole to be filled in the absence of the Ceann Comhairle, he would look after it. Should we be living on an island as prosperous as this with even one pothole to our name in this day and age? The fact they exist at all is a testament to the lack of investment in non-national roads throughout the country.

In regard to broadband, there are parts of north Cork where people are still dialling-up to access the Internet. Dialling up in 2007 is a joke. Data published by the European Commission shows that in 2007, 74% of households in the Netherlands have broadband access compared with 31% in Ireland. Who is responsible for ensuring that Ireland meets its goal of becoming what the Government calls a "world-class knowledge economy" in just over five years? How can we compete on a global scale if the roll-out of broadband is at such a paltry level?

The Fine Gael motion calls on the Government to take necessary actions on public sector pay. It is difficult to comprehend just exactly what this means. The vast bulk of both public sector and private sector workers are operating at wage levels that keep them and their families' heads just above the water-line. A total of 1.5 million people have salaries worth less than €38,000. To survive on a wage of €38,000 in today's terms is a difficult task. Real people operate and survive within this bracket, but they are under pressure in this society. Their mortgages have increased and they have borrowed to meet the demands of day to day living. They are overworked, overcharged for child care and overstretched. Their average basket of food items is increasing at a rate of 4% to 5% per annum. People on this income bracket can ill afford to absorb such increases, yet they are the back-bone of this economy.

Today the Minister will present the usual budget of tax and social welfare changes. He must look at this income bracket and provide some measure of relief to increase real income to offset the increasing cost of living. Fianna Fáil made generous election promises on health, education and justice with more teachers, more gardaí and more consultants promised. Today will tell whether the Minister intends to fulfil those promises.

There is a nervousness about Ireland's economic prospects, and much talk of a tight budget. This motion largely addresses those concerns. There is a school of thought that says we should not play politics with the economy. I do not wish to score points, but I do want to remind this Government that its handling of the economy has a bearing on people's jobs and their mortgages and how they provide for their families. In supporting the spirit of this motion, but not the full tenet of it, we believe it is the role of an Opposition to contribute constructively on how to maintain economic prosperity and further economic development.

There are serious issues about our competitiveness and we have to face up to that. However, there is also a lot that is positive about the economy. In that respect, as a nation we need to focus on opportunities. The economic review and outlook, produced by the Department of Finance last month, predicted that the economy will grow by about 3% next year. It is not what we would want but it is growth and we should acknowledge that. We still need to focus on the possibilities. Growth in the economy is no longer driven by the export of goods. However, growth of services exports is very healthy. We need to continue the focus on sectors such as sales, research and development and high-value traded services. We need to ensure, not just that we invest in research in our universities, but that the knowledge being generated is turned into commercial activities and that young indigenous companies survive.

The agricultural sector is a mainstay of our economy. Food and drinks exports account for over €8 billion. We must also look to our rural economy and ensure that investment continues in the agri-food sector. We ignore the potential of the rural economy at our peril. At the same time, we must continue to ensure we can attract foreign investment.

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