Billy Kelleher (Cork North Central, Fianna Fail)

I am delighted to have this opportunity to speak on the issues that confront us. As we speak, social partners are in detailed discussions based on a framework document entitled Framework Pact for Stabilisation, Social Solidarity and Economic Renewal. I am delighted they have agreed on a framework document and that they can now engage in detailed discussions to advance proposals put forward by themselves and the Government on how to address the challenges facing us.

Every Member is aware of the great challenges facing us, some of which were caused by internal problems and others which, it is important to note, were caused by global events over which we have no control. Some Deputies seem to believe the banking crisis was caused by Anglo Irish Bank alone and some individuals involved with that institution. Let us be under no illusions that the financial banking crisis is a global one. I recently read reports from the United States indicating people have made apologies for allowing Lehman Brothers to go to the wall and for necessitating the bailing out of other financial institutions. The fact of the matter is that the global financial crisis started in the United States in the sub-prime market and filtered into all economies in the world, culminating in a credit crisis. This, in itself, has compounded the difficulties in the Irish context.

We are already facing challenging times because of our over-reliance on the construction industry. However, a view is being circulated by some Members of this House that the construction industry just put money in developers' pockets. For many years, craftspeople and others working on building sites throughout this country enjoyed gainful employment with reasonable remuneration. It is important to acknowledge that, while there was over-reliance on the building industry, it employed many people for many years. The number of people who came here from the newly acceded states of the European Union increased dramatically over recent years. This shows the full extent of employment generated by the building industry.

We are now running into major difficulties, however, and these difficulties feature across the broader economy. Nevertheless, we must bear in mind what we have achieved as a nation to date. It is very disappointing to hear some Members talk as if Ireland has achieved nothing in the past 40 or 50 years, or even since our independence. The fact is that Members on all sides, along with the social partners and the people, can be very proud of what we they have achieved in recent times. We made the transition from an agrarian society, whose main export was its people, to a society with full employment, a labour force of over 2 million people, increased public expenditure and considerable investment in capital projects, infrastructure and roads. All these developments are clear. We can be slightly cynical in this House at times and dismiss them as never having been achieved in the first place.

We have come from a very low base and must therefore keep firmly in view what we have achieved and realise where we are when dealing with the challenges. We can do this collectively. I genuinely believe the social partners were very responsible in difficult times in the 1980s and also in the good times in the 1990s. We now face a crossroads but the confluence of events and circumstances internationally is making the challenge greater than ever. Decisions that will be made by the Government and social partners in the coming days will have a profound impact on the generations that come after us. The decisions made will be the most difficult this generation of politicians and those involved in social partnership will ever have to make. I hope they make sensible proposals that are fair and equitable and distribute the burden of pain across all sectors, such that the weak and vulnerable will be protected and that those who can afford to do so will carry a heavier burden. All political parties would endorse this view.

We do not want to undermine what is happening in Government Buildings with the social partners. Obviously people have stated positions and want to negotiate on that basis in the knowledge that those positions will not be in the public domain until such time as there is a final conclusion. Deputy Ó Caoláin will be well aware of how lengthy and difficult negotiations can be. People change positions and must be encouraged to do so. This takes time so we must give them the space and opportunity to make proposals that are fair to their members and that also deal with the crisis we are facing.

The most immediate impact of the global downturn was the bursting of the construction industry bubble. This is now affecting the broader economy. Every day there are job losses and company closures, which comprise the most immediate impact of a global downturn. For this reason alone, we must increase the number of training programmes and expand FÁS's capacity to deal with people as they become unemployed. This will place a great burden on the Exchequer. I urge all those involved in the State agencies dealing with the unemployed to put in an extra little bit of time and effort. While we know they are under a lot of pressure, we depend on them fundamentally to create the courses and training programmes for the unemployed.

The mistakes we made in the 1980s in respect of unemployment, namely, throwing people on the scrapheap, must not be repeated. We must learn this lesson. We had large-scale unemployment but did not deal with the unemployed and provide them with training opportunities and educational courses. The Department of Enterprise, Trade and Employment will try to determine the programmes necessary to deal with this issue.

We have 2 million people employed. Those on fixed, secure incomes could enjoy a higher standard of living this year because of a reduction in inflation or potential deflation. Everybody must recognise that some are in a more privileged position than others, but every effort must be made to deal with those at the coalface who find themselves unemployed.

The social partners comprise the mechanism for a resolution. I urge every Member to encourage the social partners, irrespective of who they represent, to make a deal that will meet the challenges confronting us.

The financial institutions guarantee scheme involved a fundamental decision on the part of the House. Some Members did not support it but, had we not established the scheme in September, we would be facing a very serious crisis, simply because a stable, financial banking sector is fundamental to any economy. On the perception that we are bailing out the banks, let us be under no illusions that the banks are owned by shareholders, many of whom are walking these streets. They either have shares or pension funds in the banks and it is therefore very important to note we are not just bailing out the banks but also trying to ensure we have a stable, viable banking system. I wish the social partners well and I know the contributions of the Deputies opposite will be taken into account in their discussions.

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