Michael Ring (Mayo, Fine Gael)

Ministers and Fianna Fáil backbenchers should be wary because the country is angry. Many families have been hurt by yesterday's announcement. I was talking to a county council official today whose only income is his own salary. His wife does not work and they have three children attending third level education. He has a job but since that is the only income coming into the house he is worried whether he will be able to pay his mortgage and keep his children in college. He also wonders what is going to happen in the future. The Government is pretending that this is a pension adjustment but it is not; it is a pay cut. If Fianna Fáilers become aggravated they go back to the time of Earnest Blythe and talk about taking the shilling off pensioners. After yesterday's announcement, however, Civil Service employees and others working for the State will never forgive Fianna Fáil or the Greens. They will never forgive this Government for what it has done to their livelihoods. It is the second pay cut this year because the 1% levy was another pay cut. That is the second pay cut in two months.

The Government is lurching from one crisis to another. There is no leadership and nothing is happening. It closed down the Dáil from December and did not reopen it until the end of January. The whole country was going down the tubes when the Dáil should have been back here discussing what could be done to help the economy.

I want to make two points concerning rip-off Ireland and housing. The Minster of State, Deputy Finneran, has responsibility for housing. There are approximately 70,000 unused houses in this State. If they were sold, the 13.5% VAT would amount to €2.8 billion for the Exchequer. I am calling on the Government to reduce VAT by a quarter and give the ensuing €30,000 to young first-time buyers. It would mean that the Government would not get the full VAT amount but at least it would get a fair percentage off it and it would bring €1.7 billion to the Exchequer. By God, do we need the money.

If shops or supermarkets have an oversupply they have a sale, but there is no thought or initiative on the Government side of the House. In yesterday's announcement and in the budget there was nothing about creating employment to give people opportunity. What has the Government done in the last ten years for small businesses? It has imposed VAT and other taxes, as well as every kind of inspector to ensure that the few people who were in business were put out of it.

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