M J Nolan (Carlow-Kilkenny, Fianna Fail)

I wish to share time with Deputies Mansergh, Kelleher, Flynn and White.

I welcome the opportunity to speak on this motion. Many times Deputies on this side of the House stand up to vehemently oppose the Opposition motion but on this occasion I see merit in it. Since I was first elected to the Dáil in 1982 I have questioned the length of holidays which the House takes each year. It is difficult to explain ourselves to the public. However, it is important to put on the record of the House that when Members opposite are in Government they also take the same line and the House goes into recess for three months.

We are in changing times and it may be time for some Government to change the way we do our business. The result of last week's referendum is a salutary lesson for us all. The three main political parties took a decision to go one way and the public, as is their right, decided it is time to teach us all a lesson.

We are now in difficult times, both internationally and domestically. International factors influence our economic growth. Far from the great days of 5% to 10% economic growth of the past 15 years, we are heading to a point where some commentators are forecasting negative growth in 2008. We must face those challenges and deal with them and this is not an easy task for the new Minister for Finance, Deputy Brian Lenihan, as he prepares for his first budget. We must face the reality that there will be more people unemployed, not just in the construction industry but in many sectors of Irish industry which are finding it difficult to compete. Oil prices have risen and our rate of inflation is one of the highest in the EU and must be tackled. The financial crisis which was prompted by the sub-prime mortgage financial situation in the United States is causing a credit crunch. Not just businesses but also individual families are finding it difficult to secure loans for housing. This has a knock-on effect of a surplus of newly constructed houses and apartments. A total of 88,000 housing units were constructed in 2006 but less than 35,000 units will be completed this year, with no real significant increase projected for next year. This will have a knock-on effect on those employed in the construction industry and on suppliers to the industry.

I ask the Government to hold its nerve and to take control of certain issues, such as wages. The new social partnership agreements are being negotiated and I ask that a positive and constructive role be taken by all parties. We have control over certain sections of the economy and this is evident in the manner in which the Government in the past few years has tackled the problem associated with the insurance industry where exorbitant insurance premiums were being charged. Thanks to the stubbornness of the Government and the Ministers involved, we took control of that situation.

The charges being imposed on small indigenous businesses by local authorities should be examined. I ask that the success of a low tax regime should not be lost and the Government should resist the temptation to increase personal taxation. The rate of corporation tax has proved significant in attracting foreign direct investment. In this time of difficulty I ask the Government to hold its nerve.

See this speech in context