Michael Kennedy (Dublin North, Fianna Fail)

I wish to begin by passing on my condolences to the family of the late Séamus Brennan. He was a marvellous politician and a true gentleman.

I welcome the opportunity to speak on this important national debate tonight. The situation the Irish economy is now facing is not one for which any one party or individual is responsible. Despite what Opposition Deputies might suggest, the fault does not lie with the Government. Ireland is a small member in an international marketplace and we are suffering an economic downturn in the same way as our European counterparts. However, because of the Government's measured lead in the last decade, Ireland has not been hit as hard by the worldwide credit crunch of recent times.

Undoubtedly, there are pressures emerging. However, we all realise that economic growth is cyclical and we are experiencing a period of readjustment from the strong growth we had in the late 1990s and in this decade. The Government measures announced yesterday are designed to cope with these pressures within a framework of continued capital spending. The Government is acting in a responsible manner. We are moving forward in a dynamic and pragmatic way. We are not relying on further borrowing and are not blindly continuing on in the hope that the worldwide economy picks up. We are taking the positive action that is needed now.

I echo the Taoiseach's remarks yesterday about maintaining a clear focus on our capital investments. Priority infrastructural investment must continue because they are the key ingredient of the country's economic recovery. The national development plan and, specifically, projects such as the Luas, the metro, road-building programmes, water and sewerage programmes and broadband must be maintained to continue the momentum for growth. Infrastructure is the one factor which sustains our tourism and trade industries and it encourages foreign investment. To continue to remain attractive and competitive we must continue investing.

The decisions that the Taoiseach and the Minister for Finance have to make are not nice and I am sure they would prefer not to have to make them, but we must remain pragmatic and continue forth in a constructive manner. Comparing this situation to the 1980s is unfair. There are now fundamental strengths in our economy due to the many years of solid growth, unlike the 1980s, which were characterised by zero growth for a prolonged period and bank interest rates of over 20%. Ireland today is a totally different country. We must not talk ourselves into a self-fulfilling prophecy. Doom and gloom could frighten off a number of inward investors, even the current metro bidders.

There is a saying that when the going gets tough, the tough get going, and this applies to the Government and the action it is taking. I welcome a number of the measures announced and in particular I welcome the Government's commitment to the national development plan. It is wise for the Minister for Finance to seek to prioritise capital infrastructural projects. On a personal note, I welcome the Taoiseach's comments on metro north yesterday.

I welcome the Government's stalling of decentralisation. I never believed that full-blown decentralisation was correct in economic terms. While I accept that the Minister for Community, Rural and Gaeltacht Affairs is doing a fantastic job, there are other ways of promoting the rural economy.

The Mahon tribunal should be closed down now rather than in few years' time. The public has lost confidence in it and it has only sought to make fat-cat lawyers even fatter. The public has lost interest and we would save a lot of money by closing it down now.

With regard to the construction sector, the National Treasury Management Agency should be allowed to lend to banks on a strictly commercial basis as a way of promoting house building. Many Irish investors abroad should consider investing in this country, particularly as this is where they made all their money. Perhaps the Government should introduce measures to ensure that moneys will come back into the country. Similarly, I suggest that the worldwide shortage in food presents us with a major opportunity in terms of food exports. We should not be tying up good agricultural land with bio-fuel crops, particularly when they have a minimal impact on our energy supplies.

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