Bernard Durkan (Kildare North, Fine Gael)

I welcome the opportunity to contribute to the debate on this important Bill, which gives legislative effect to the budget proposals. The Finance Bill and the Social Welfare Bill are the two most important items of legislation that go through the Houses every year.

The first question to ask is how have we arrived at this juncture. Why are there swingeing cuts in services throughout the State and taxes being imposed which were not mentioned a year ago? Why were these taxes not introduced last year or the year before? Why were medical cards for over 70s, which were granted prior to the 2002 general election, taken away so suddenly? What have older people done wrong? Have they committed some atrocity for which they must be punished? Why have their rights been taken away arbitrarily at the stroke of a pen?

Why are the problems in education that were identified some 18 months ago, such as overcrowded classrooms and inadequate accommodation, now being exacerbated through reductions in funding? These problems were recognised by Government and Opposition alike. Parents, teachers and politicians combined to focus on the problems of overcrowded classrooms and insufficient teachers to address the unsatisfactory pupil-teacher ratios. Why has this suddenly changed?

Cuts are being imposed throughout the agriculture sector. We are a food producing country. In the past 18 months it has become clear that the EU has insufficient food supply for its own population. The proposed cuts in all these sectors will impede economic development here.

Although not officially announced, we are all aware that a spate of cuts are being imposed in health services throughout the State, such as restrictions in the qualification criteria for medical cards and home help hours being reduced. A series of swingeing, slash and burn cuts are being imposed on the most vulnerable members of our society.

What has gone wrong? The public was deceived in the last general election. For the Government, there was no question of being honourable and admitting that the State was broke. The budget represents a band-aid whereby urgent remedial action is being taken. Why was it not taken a year or 18 months ago? The answer is that it could not be done because a general election was about to take place. I did not touch yet on the banking situation.

All of this has a serious impact on where we find ourselves now. Why are we here? Certain people in certain places did not do the job they were supposed to do. The Government did not do the job it was supposed to do. It did not impose the regulations that it should have imposed. The Department of Finance did not impose the regulations that it should have imposed. The Central Bank did not impose the regulations it should have imposed. The Financial Regulator did not do so either. The reason for this is that they were all acting under the direction of the Government. They were not supposed to do this, but that is what they were doing. We are now in a situation whereby the people of this country must pay the price, in spite of the fact that they were not guilty. They did not ignore any regulations. They continued to work and took the advice they were given. Now they are up to their ears in debt. We have now incurred personal debts far in excess of anything in the US or elsewhere in the world. We were told by people who were supposed to know that we were the third richest nation in the world and the envy of everyone. What in God's name went wrong?

A Cheann Comhairle, you are the only person in this House who can look forward to the next general election with confidence. Long may that continue, because you are doing a wonderful job as Ceann Comhairle.

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