Dara Calleary (Mayo, Fianna Fail)

Something which was agreed by the social partners in the past few weeks was that we required a €2 billion saving this year. This is accepted in the Fine Gael motion and the Government amendment. When one considers that the breakdown of Government spending is €20 billion for social welfare, €20 billion for pay and €15 billion for the capital programme, one realises that the options in identifying €2 billion in savings are limited. We cannot, as every previous speaker stated, reduce the social welfare budget, particularly in the light of the huge demands being placed on it. Our capital programme is essential in order to address the problems in and reignite the economy. It is unfortunate, therefore, that we have been obliged to consider reductions in the €20 billion public service bill.

No one is stating the public service caused the financial crisis. Some 99% of those who work in the public service contributed to the growth of the country through their hard work and endeavour. However, it is unfortunate that in addressing issues relating to Government expenditure and the need to reduce it we have been obliged to consider the position vis-À-vis the public service. It is important to emphasise that the pension contribution is tax deductible. The nature of the contribution means that it will reduce the level of income at which PRSI and levies are paid. As a result, the bulk of headline reductions are not as major as may seem.

It is also unfortunate that we have been obliged to reduce the level of overseas development aid, ODA. However, it is important to remember that Ireland's position in the world as a per capita donor remains hugely significant. A former Member of the House who once had responsibility in this area would have been satisfied to have had the amount by which our contribution is being reduced as the overall ODA budget.

The decision to increase funding for the capital investment programme which was announced yesterday is particularly welcome. In effect, this is the stimulus package so many are seeking. I am especially happy with a number of the increases announced by the Minister of State at the Department of the Environment, Heritage and Local Government, Deputy Finneran, in my home town of Ballina last weekend. A development for which the town has been waiting 25 years has finally been given the go-ahead. I refer to the construction of 75 social houses for the most vulnerable in the town.

Yesterday's decision to allocate further funds for the schools building programme is particularly welcome. I commend the Minister for Education and Science, Deputy Batt O'Keeffe, in this regard. I hope the additional funding can be utilised to speed up projects which have been delayed for many years. We can increase the value of this investment and that of the entire public capital programme by considering different ways of building schools. We should use the downturn in the construction sector which is associated with developers in possession of large land banks. We must encourage them to open them up. We must also open up the schools building and other programmes to developers to become involved in community-based projects on a build and lease back basis. This approach would require an entirely lower level of up-front capital than is needed under the current model. In addition, it would provide employment for construction workers and opportunities for apprenticeships and ease the pressure not only in respect of schools but also with regard to building social welfare offices and other capital projects.

We should use the downturn to obtain more money for less. The savings identified yesterday in respect of the capital programme are evidence of the success of that approach. As one of the largest purchasers in the economy, the State should go in much harder in respect of this matter.

Deputy Byrne referred to a matter to which I have referred previously, namely, the very restrictive tendering process that applies in respect of these projects which was introduced in different times. It must be reviewed as a matter of urgency. Small builders are no longer gaining access to Government projects. As these are now the only projects proceeding, such builders depend upon them. It is the small builders who are keeping apprentices and tradesmen in jobs locally.

Members have expressed their frustration about the fact that those who, in the eyes of many, caused the financial crisis are getting away with it. I share that frustration. Since before Christmas there has been a great deal of evidence of a complete collapse in standards in some business operations. It is unfortunate the majority of business people who adhered to their responsibilities, etc., are being dragged down as a result of what has happened. Certain examples of corporate behaviour that have been exposed have given rise to a complete collapse in trust. Further action should be taken in respect of this matter.

Deputy McCormack referred to our bailing out the banks. Let us nail that myth. We have not bailed out any bank. The bank guarantee scheme is being offered at a fee. The bank recapitalisation due to take place is happening because businesses cannot get money and mortgages cannot be approved because of the fact that the banks cannot obtain capital. We are bailing out businesses and mortgage holders, namely, those who need loans and access to finance. The banks will also pay a fee in respect of recapitalisation. We are not bailing out the big boys, but those who provide local employment.

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