I thank Deputy Flynn for sharing her time with me. I welcome the opportunity to speak in the House on the Finance Bill. There is much worry out there about the state of our economy, and from talking to my own constituents I know it is a very real concern. However, it is worth pointing out that this is not an issue that is particular to Ireland. We are in the midst of a global economic crisis, but one for which we are better equipped than many. Difficult decisions had to be made by the Government to deliver this budget. They are decisions we would rather not have to take, but they are necessary in these uncertain times.

I do not think any Minister enjoys having to deliver stricter budgetary controls to social welfare beneficiaries, schools, hospitals, PAYE workers or senior citizens. These decisions were taken to ensure that the progress of the past decade is protected and that the country is best placed to take advantage of the inevitable upturn in the international economy when it comes. Our economy is now much better insulated than it was in the 1980s to withstand the difficulties to be faced over the next couple of years. We are tackling the situation head on, and I am confident the Government will see Ireland through this storm. Our focus is on generating economic growth by providing employment, assisting industry and enhancing the competitiveness of the economy. The Government's decision to guarantee deposits in Irish banks in an effort to restore confidence was a courageous one and has been replicated by many other European countries. We have led the way in times of despair, and other countries are examining our movements to try to keep up. The Government was elected to manage the economy and that is what we are doing at this difficult time.

Many commentators both inside and outside the House have given their spin on the question of recapitalising the banks. I have one concern in this regard. Many people are throwing their weight behind the idea of recapitalising the banks as an answer to everything. We must realise that this recession is not just of our own doing; it is a global recession. The difficulties with the banks are a global problem. I do not believe that to suddenly recapitalise the banks would be the answer to everything. Too many people are putting all their eggs in one basket. The Minister is right to examine this before going too far and perhaps realising there are further ramifications down the road.

Much has been offered in this budget in terms of social welfare for those more in need. Improvements in the family income supplement for low-income working families have been introduced and there have also been increases in child-related payments to those dependent upon social welfare. A total of 18,000 more families will become eligible for the back to school clothing and footwear allowance — an allowance that is much needed by many families.

The closure of two Army barracks in my own county is causing much concern among staff and Army personnel in both Rockhill and Lifford. Unfortunately, the running of these barracks is extremely costly and the Minister has decided that the personnel are to be facilitated at Finner Camp in the near future. This decision has been reached for two main reasons, the first of which is cost savings. In addition, it is believed that due to the peace process in Northern Ireland there is less requirement for Army barracks along the Border. It is envisaged that the proceeds of the sale of Rockhill and Lifford Army barracks will produce substantial resources for the modernisation process of the defence organisation. There is much unrest among soldiers and their families about the imminent closures and I have met with many of them in recent weeks. I have also met with the Minister to convey these concerns. At the very least, the Minister will deliver. The personnel involved should be very well accommodated. I expect the Minister will step up to the plate in this regard and do what he can to ease the burden for our Army personnel and associated staff in these difficult times.

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 would like to focus on the positive for a moment. The value of GDP increased in Ireland by a factor of more than 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 now for many years and nobody can deny the progress that has been made in this country over the past ten to 20 years. We have all been part of building it and we have all enjoyed it. Such has been the progress that Irish emigrants come back home on holiday and can barely recognise their home towns. We must not forget that.

We have experienced incredible growth and prosperity and the economy is now taking a hit, but I believe that with the proper management this Government is providing it will level out. The good times will be back. However, the emphasis at this critical point is damage limitation. I appeal to those in the public service to row in behind the relevant Ministers. No Minister wants to make savings within Departments but that is the situation we face. People will have to grasp the reality. With a bit of rowing together for the next couple of years, the good times will come back sooner. In the last couple of weeks since the budget, people have started to realise we are facing difficult times. I appeal to those in the public sector to work with the relevant Ministers for the good of all concerned and for the good of our country. I believe that with the proper mentality and a spirit of co-operation we can bring the good times back sooner rather than later.

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

The Opposition has been playing political football with the economy in recent times. It plays the blame game when it is required to consider the economic problems this country faces. When the Opposition parties were in government over ten years ago, they decided to freeze direct school funding. They also proposed a reduction in teacher numbers. I do not think the proposals they are making nowadays are very different. When they were in power, they cut the budget for school buildings and renovations by €20 million. This is in stark contrast to the record of the current Government. Over the past 11 years, the Government has invested unprecedented amounts of taxpayers' money to build roads, schools, houses and water and sewerage treatment plants. We have spent billions on increasing pensions, children's allowance, carer's allowance and other social welfare benefits. The level of spending on health, education and social welfare has increased in the current budget. It is fair to say that times are tough. Everybody is feeling the strain on their disposable income. I wonder which of the aforementioned increases the Opposition would like us to withhold. Should we decide not to spend additional money on schools, roads or pensions? The Opposition parties are keen to remind us of the 1980s. I understand their interest in the decade in which they were last returned to government following a general election.

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