Chris Andrews (Dublin South East, Fianna Fail)

I am delighted to have this opportunity to speak. If anybody remained unconvinced that we live in a globalised world, they now realise we are part of something bigger than just a country alone. In many ways we are like a little ship bobbing on very stormy waters. Unfortunately we are being thrown around because of our dependence and interaction. We are more exposed than other countries and are probably suffering more than most. I heard the Minister speak earlier. It is hard to believe that each day seems to bring worse news and more negativity than the previous one. Almost all countries are suffering financial difficulties. The United States economy appears to be frozen. The President-elect, Mr. Barack Obama, seems to be stepping into the breach by trying to heat up the American economy with cash injections. I understand the US Treasury Secretary, Mr. Hank Paulson, today decided to inject a further $800 billion into the US economy. While people might find it galling that such money is being used to bail out Wall Street, as opposed to Main Street, there would be repercussions around the world if such action were not taken.

Deputy Cyprian Brady spoke about the notion being peddled by the Opposition that the Celtic years were wasted. I will give an example of how money was spent for the benefit of this country during that period. In 1997 there were virtually no special needs assistants in our schools. In 2008 there are 10,000. Such assistants support children with special needs. They ensure the right of such children to an education is vindicated and help them to develop. That is where the money has been spent in the last ten years. It is helping disadvantaged people who are less fortunate than Members of this House.

The budget introduced comprises a balanced and coherent plan to address the difficulties we are encountering as a consequence of falling revenue. It has focused attention on the severe challenges and difficulties we face. It is important to stress that we are not going back to the 1980s which was a completely different time of mass emigration. We are in a different position. We are in good shape to take advantage of the tough decisions being made in the budget and future ones.

It is unfortunate for the person who becomes unemployed. However, there are 600,000 more people in employment today than there were ten years ago. Our export levels have doubled in the past decade. As Deputy Cyprian Brady said, our living standards have improved dramatically in that time. We have one of the lowest debt levels in the European Union. There are over 600,000 more people working now than there were in 1998. There are 2 million people at work in this country. We have a low debt-to-GDP ratio. It has decreased from 53% of GDP in 1998 to 26% this year. We also have a pension fund and a generous welfare system. In real terms, the State pension is one of the highest in the European Union.

It is easy to criticise young people. We have an energetic, well trained and well educated young workforce. By international standards, we have a low tax environment for workers and business. That has been an important driver of economic growth. I am glad to say administrative changes will take place within the Health Service Executive and the rest of the public sector. People are looking for dramatic changes to be made in the broader public sector, as if that would change everything. In reality, public sector reform will take time. It will not happen overnight. It will be done in a constructive and meaningful manner that will see us right in the long term.

I wish to comment briefly on the banks. They appear to be unable to operate in any state other than greed or fear. We need them to be able to operate in a balanced way. It is important to stress that they were not bailed out for the sake of the banking industry. It was done to help ordinary people. If the banks had not been bailed out, this country would have collapsed, which would have had a desperate effect on families and, in particular, disadvantaged and older people. It was not done for the bankers — it was done for decent, hard-working and honest people. I am seriously concerned that the banks are continuing to look after themselves, first and foremost. They are being supported by the public, through the Government, but do not seem to appreciate that they are still in business as a result of that assistance. They do not seem to have realised that everything has changed.

The public will not accept the astonishing levels of arrogance the banks have shown to date. The banks appear to believe they are untouchable but they are in for a shock. They need to realise that they have to start behaving with a degree of humility. They should recognise that they will not get out of this mess, which they were active participants in bringing about, unless they show balanced judgment and a sense of social responsibility. If they do not do so, they will suffer just as the rest of us probably will. Now may not be the time for retribution but there will come a time when heads will have to roll. It will be expected that heads will roll. The terms and conditions that apply to any scheme of recapitalisation should ensure this happens to senior bank officials. The possible recapitalisation of the banks has been bandied about as a silver bullet that will solve everything. The reality is that recapitalisation, on its own, will not solve all the problems in the banking sector. If it comes to pass, it must be implemented and supervised carefully. The terms and conditions of any recapitalisation scheme must be very clear. They must be skewed in favour of the public purse. It is clear that supervision of the banks is key. The banks need to be brought to heel but this has not yet happened.

The income levy, one of the key measures in the budget, is aimed at stabilising tax revenues. It will mean that the better-off will pay more. The more one earns, the more one will pay. That is a positive measure. This is a difficult time and almost everyone will have to bear some pain. It is likely that those who prospered most in the last ten years will, proportionately, have to endure the most pain.

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