Bernard Durkan (Kildare North, Fine Gael)

It has nothing to do with the economy. No corrective measures, good, bad or indifferent have been taken. The amazing thing is that we have not heard in recent days about the high wage economy. Do Members remember the high wage economy about which the former Tánaiste used to boast? We were a special country, international marketeers and competitive. We have not been competitive for the last five years. That signal was starkly visible. The economic fundamentals are not in order. That is the sad part about it. Wherever the Government is getting its figures, it is wrong. Government members are codding themselves. They are gone off the wall. It is worse than it has been portrayed.

Sadly, if the Government thinks this is the full extent of the problem, it has another thing coming. Let it watch the markets and shares and see what is happening. Does the Government realise that what it is doing does nothing to address those issues to restore confidence in the economy? We have an economy that was driven by the construction industry. The Government was creaming off money in taxation, VAT, stamp duty and all the other ways and that is why it was doing so well. However nothing is being done to correct it. There are building sites all over the country locked up. No houses are being sold because the public cannot afford to buy them. Houses are being repossessed from people who bought them four or five years ago. Action was not taken because of a fear of negative equity. As we all know, negative equity is not a great idea but does not affect individuals unless they have to sell.

There is thinking in Government that everything will be restored in a short space of time and things will start flowing again. Unfortunately, they are not and the Government does not realise it. I cannot understand the economic basis on which the Government places its premise. Nothing will happen. The banks cannot or will not lend. The construction industry is stuck on the other side and can go neither forwards nor backwards. That is the kernel of the problem. Tinkering around the edges of it will not solve the problem. The Government can cut the health and education services and cause as much hardship as it likes but it is not addressing the underlying economic issues as borne out by Deputies Kenny, Gilmore, Bruton and Burton in the last few days.

Yesterday the Taoiseach and Minister for Finance mentioned management. That is what we have not got. There has been no management. Any fool could have recognised that when we had low interest rates, as we had over the last seven, eight or nine years, people would automatically speculate in property, as they are now speculating in oil, hoarding it and driving the market wild. The Government did nothing about it, but said interest rates are set by the ECB. That is correct but credit rating is not set by the ECB.

Sadly, my time has expired. It is sad that we get only five minutes on an issue as important as this with the economy as it is.

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