I am glad to have the opportunity to speak on the budget. There is much public worry over the state of the economy. I have been talking to my constituents in Donegal and know their concern is very real. The issue is not unique to Ireland. We are in the midst of a global economic crisis but we are better equipped for it than many.

Difficult decisions had to be made by the Government to deliver its budget. The decisions are ones we would rather not have to take but they are necessary in these uncertain times. There is no credit to be derived from delivering stricter budgetary controls in respect of social welfare benefits, schools, hospitals, farmers, PAYE workers or senior citizens but these measures were necessary.

Consider some of the measures proposed by the Opposition, particularly Fine Gael. The Government announced cuts of €2 billion while Fine Gael proposed cuts of €4 billion. I would love to know the circumstances we would be in if cuts of €4 billion had been made. I wonder whether the Opposition really realises where it stands on budgets. The measures of the Government were taken to ensure the progress of the past decade will be protected and that the country will be best placed to take advantage of the inevitable upturn in the international economy when it occurs.

Our economy is much better insulated from the difficulties it will face over the coming years than it was from the difficulties it faced in the 1980s. That is the reality. We are tackling the problem head on and I am confident the Government will see Ireland though this storm. Our focus is upon generating economic growth through employment, assisting industry and enhancing economic competitiveness.

The Government's decision to guarantee deposits in Irish banks in an effort to restore confidence was courageous and was replicated in many European countries. We have led the way in times of despair and other countries are examining our movements in order to try to keep up with us. That is what this Government was elected to do, to manage the economy. That is what we are doing in this difficult time, not taking short-term decisions but looking further down the road to ensure the growth we have enjoyed can come back again.

Much was offered in the budget in terms of social welfare for those more in need. Improvements in family income supplement for low-income working families have been introduced and there have also been increases in child-related payments to those dependent on social welfare. A further 18,000 families will become eligible for the back to school clothing and footwear allowance, which is much needed by many families across the country. Much worry and anxiety have been expressed in recent days by older people in respect of the availability of medical cards. Like others, my office was inundated with calls from pensioners who were concerned they might lose their medical card. I am delighted the Taoiseach made the decision he did. It certainly shows this Government is prepared to listen to the people. We did not bring in decisions just because we liked to but we wanted to look after all concerned, particularly those in need. I believe the revisions of the scheme will satisfy the vast majority.

The closure of two Army barracks in my county has also caused much concern among staff and Army personnel in Rockhill and Lifford. Unfortunately, the running of these barracks is extremely costly and it has been decided the personnel will be facilitated at Finner Army camp in the near future. I have been told this decision was reached for two main reasons. The first is cost savings; the second is that there is less requirement for excess Army barracks along the Border because of the changed situation arising from the peace process in Northern Ireland. It is envisaged the proceeds of the sale of Rockhill and Lifford barracks will produce substantial resources for the modernisation process in the defence organisation.

At this time, it may be tempting to become negative about what we have achieved in this country over the past ten to 20 years but I wish to focus on the positive. The value of GDP increased in Ireland by over 70% between 1970 and 2006, which is well above the EU average. National debt as a percentage of GDP has fallen from over 87% in 1990 to just over 20% in 2006. This economy has been booming for many years and nobody can deny the progress made in this country over the last ten to 20 years. We have all been part of building it and we have all enjoyed it. Irish emigrants came back home on holiday and could barely recognise their home towns so great was the progress and we must not forget that. We experienced incredible growth and prosperity and the economy is now taking a hit but with proper management provided by this Government I believe things will level out. The good times will be back but at this critical point the emphasis is on damage limitation.

The economic outlook has changed. However, after the strong performance of our economy over many years this Government is in the best possible position to navigate its way through the challenges that lie ahead. That is what we intend to do and our focus must be on positioning Ireland to participate in the global upturn.

Of late, the Opposition has been playing political football with our economy. It plays the blame game concerning the economic problems faced by this country. Over ten years ago, the Opposition decided to freeze direct school funding and also proposed cutting teacher numbers. It also cut by £20 million the budget for school buildings and renovation. This is in stark contrast to the record of the current Government. During the past 11 years the Government has invested unprecedented amounts of money in building roads and schools. We must all look to our own constituencies and see the number of school buildings and extension works, the number of houses built at local authority level and the water schemes and sewage treatment plants built during this period. The Government has spent billions of euro on increased pensions, children's allowance, carer's allowance and other social welfare benefits. Spending on health, education and social welfare was increased dramatically in this budget.

Times are tougher now and everybody will feel the strain in disposable income but I wonder which of the aforementioned increases the Opposition believes should not have been given: schools, roads or pensions. The Opposition is understandably keen to remind us of the 1980s because that period was the last time their parties were returned to Government following a general election. At that time inflation was approximately 21% and personal tax rates were 40% and 65%. In 1986, the year before Fianna Fáil came back into Government, Ireland had a higher debt per head than Ethiopia and Sudan. We can never go back to the 1980s and I am confident that with Fianna Fáil at the helm we will not.

The Taoiseach has come in for much criticism from the Opposition in recent weeks and the budgets over which he presided have been held up for scrutiny. I do not think there is anything to be ashamed of in the budgets of Deputy Cowen as Minister for Finance or in the budget of the current Minister for Finance, Deputy Brian Lenihan. The old age pension was increased by €66, financial support for parents with children aged under six almost doubled, provision for special needs education was doubled and the social welfare budget increased by 40%. These are the vulnerable groups in society and the Taoiseach and the Minister for Finance, Deputy Lenihan, looked after them when we were experiencing better times. Would the Opposition prefer we had neglected them? Its members accuse this Government of reckless spending but at the same time they continually call across the floor of this Chamber for more spending. This is the same Opposition that called for 13 further quangos at the last election. In its manifesto last year it called for three further junior Ministers. There appears to be a considerable level of confusion on the other side of the House.

However, it is time all elected representatives pulled together. There has been too much finger pointing of late by the Opposition and it would be much more productive if all parties in this House got behind the Government in a joint effort to steer our economy through these more difficult times. That would benefit all of us. Framing a budget is not a popularity contest and nobody likes to impose stricter budgetary controls but we are not in the business of buying short-term popularity to put at risk all the gains of the last decade.

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