Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

We are addressing the economic crisis once again in extraordinary circumstances. The breakdown of the talks with the trade union movement leadership in the early hours of this morning raises major questions about the intent of the Government in those negotiations and about its competence as negotiators. Why was the detail of the public service pension levy only tabled at the last minute? Was this a game of brinkmanship that the Government lost? Did it take the ICTU for granted or was it simply ham-fisted negotiation tactics? The result is an even greater mess that further undermines confidence in the economy and in the ability of the Government to plan and implement a strategy for recovery.

The Taoiseach's decision to start discussions on the pension levy at the eleventh hour would seem to indicate he was never fully committed to getting across-the-board agreement from the unions and employers. In contrast to the unions it was very noticeable that the representatives of IBEC were pleased with what has taken place and seemed to have few complaints about what they had seen of Government plans. This was an ominous sign for ordinary workers across this jurisdiction. Sinn Féin is not opposed to taxation and other measures to redress the country's ailing public finances. However, we agree with the trade union movement that low to middle income earners cannot carry the substantial burden. Proposing a 3.8% pension levy on those on the lowest public service incomes while the chief executive officer of the ESB continues to earn an annual salary in excess of €500,000 and senior bank executives, who have undermined the country's banking system and exposed Irish taxpayers to astronomical liabilities, keep their jobs and a massive income is simply outrageous. The Taoiseach has told us of "immediate legislation" to put this new levy in place. Where is the immediate legislation to bring the swindling bank bosses to book? Where is the immediate legislation to give relief to mortgage holders facing untenable debt and the repossession of their homes?

Sinn Féin believes the primary goal of the Government's economic recovery plan must be to safeguard the livelihoods of low and middle income workers and to deliver a job creation strategy; that cannot be emphasised enough to this Government. Sinn Féin last October in its pre-budget submission found almost €2 billion in savings for the Exchequer yet the Government is still flailing in the dark. Confidence is crucial in steering us out of economic turmoil but thanks to the Government's lack of strategy, confidence is ebbing away at both national and international level. We have to remember that the Taoiseach was Minister for Finance at the time private housing construction rose at an untenable rate. It was on the Taoiseach's watch that much of the irresponsible and reckless lending practices of the banks took place and it is now the Taoiseach who is responsible for the past six months which has seen the Government make one U-turn after another in its response to this economic crisis.

What makes the Government's proposals even more difficult to swallow is that while money is being cut out of incomes of Irish workers, it continues to pour billions into the banks with almost no strings attached. We have also seen the nationalisation of Anglo-Irish, which was simply a bail out of its property developer friends and which leaves the taxpayer to pick up the bill for an ever increasing toxic debt.

We recognise our public finance deficit. Sinn Féin has identified a key source of wastage of public spending in the private companies that are operating on the back of our public services. Yesterday the Minister for Health and Children once again opened another private for-profit health clinic in County Kildare, which was substantively funded from taxpayers' money.

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