Timmy Dooley (Clare, Fianna Fail)

I thank Deputy Seán Fleming for sharing time.

The budget was set against a very difficult and different backdrop from budgets in recent years. The international crisis, about which we talk so much and which perhaps many of us do not understand to the extent required, has put enormous pressure on governments and politicians throughout the world to react in the best way they can to address their economic circumstances.

The crisis started in the banking sector and moved into the stock markets, so there has been a double impact. Many people have not started to focus on the very particular impact it will have on this country, namely, on foreign direct investment, investment already here and on our capacity to retain employment at record levels.

While many people are talking about a recession, it is almost like a virtual reality. For many people, it is just talk because they have not experienced the level of crisis economies throughout the world are in. It will take perhaps another six to eight months before people really appreciate how dire is the state of the finances not only of this country but of countries throughout Europe.

While there may be much outcry at present about certain measures — many of them will be highlighted over the coming days and weeks — it seems people really have not come to terms with the state of affairs on a national and international basis. People would find it a little easier to understand some of the decisions taken if they accepted that.

The diminishing tax returns, which required the budget to be brought forward, was really the first indicator. When the tax and capital gains tax returns are made in the middle of next month, it will bring into very sharp focus where the public finances stand. What is most important is to put order on the public finances. We all suffered in the past because governments on all sides failed to take the decisive action necessary. We cannot allow that to happen again.

The Opposition seemed to suggest that this budget was about attacking the young, the old and the low paid and that there was another target group, the high rollers. This is the Joe Duffy mentality, namely, that there is a group of high rollers which one can target. The truth is that the bulk of the tax take comes from middle income earners who are being stretched. When one looks at their income limits versus the income limits which are talked about loosely, one will see the pressure which is on so many people with high mortgages, child care costs, the cost of travelling to work, the cost of education and the cost of raising a family. The Opposition seemed to suggest that we should target these people but it will not come out and say that. There are not enough high rollers about which it talks. If we took the entire earnings of the so-called "multimillionaires", it would not pay to keep anything going. It is important people are honest and that they set out clearly from whom they want to take extra money to shore up the public finances and to get us back on an even keel.

The other misconception floating about is that we bailed out the banks. We have thrashed this around the House fairly well but the Joe Duffy show seems to think we bailed out the banks and propped up property developers. This has become common currency. While it is completely untrue, there is a belief that is the case.

There is also the notion that Fianna Fáil-led Governments blew our success in the good times.

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