Róisín Shortall (Dublin North West, Labour)

It is regrettable the Minister for Social and Family Affairs has left the House so quickly after speaking because I want to highlight the absolute hypocrisy of what the Government is discussing with the social partners. I have a copy of the draft framework document, which I managed to get last night. It talks of reducing public expenditure while showing "solidarity with those now losing their jobs". This is from a Government that has just cancelled three months of payments for all jobseeker's benefit claimants and that just yesterday laid before the House new regulations cutting the entitlement of part-time workers to jobseeker's benefit. What hope is there for the country if this is what they mean by solidarity?

The draft framework document also talks about reviewing the mortgage interest supplement scheme. Just before Christmas, however, the Minister who has just left the House awarded herself new powers to curtail the amount of assistance provided. Is that what they mean by solidarity?

True solidarity would target cutbacks at the top and work down from there. True solidarity would target cuts at wasted expenditure and the scandalous tax breaks that are available for the better off. Why should anyone take a pay cut when they see top banking officials and businessmen engaging in dodgy dealing, threatening the very basis of our economy and getting away with it? Why should anyone take a pay cut when they see top public servants getting large bonuses and others receiving golden handshakes and plum pensions after they have been forced to resign their positions? Why should anyone take a pay cut when they see every cent invested in the National Pensions Reserve Fund last year, all €1.69 billion of it, lost on the stock markets while the fund managers take over €20 million in fees? In fact, in the past year almost €5 billion of taxpayers money has been lost from this fund. Why should anyone take a pay cut when they see that many landlords do not pay tax on their rental income, when rich artists do not pay tax on their book or record deals and when high earners continue to get massive tax relief on their pensions? Why should anyone take a pay cut when our Ministers remain among the best paid in the world despite the absolute failure of their developer-led policies?

Do not get me wrong. The country is in an economic mess and pay cuts and tax increases have to be part of sorting out that mess. However, it strikes at the very legitimacy of government to start that process by targeting those who have been prudent and responsible, who bear no responsibility for the mess and in many cases are least able to afford it.

Yesterday, the leader of the Labour Party said in this House that "the nucleus of a modern economy is trust" and that this requires trust in the political system. If the country is to recover, there is a need for the Government to show a sea-change in its thinking in this regard. It must target those who can best afford to contribute to the economic recovery. Its failure to do so will mean this recovery plan has no chance of succeeding.

See this speech in context