Brian Lenihan Jnr (Dublin West, Fianna Fail)

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"—affirms that all measures required to deal with the current economic crisis must be based on the principles of fairness and equity;

supports the proposed pension-related deduction as a reasoned and measured step which is necessary to help restore balance in the public finances;

recognises the need to apply this measure without delay to assure all concerned of Ireland's resolve to tackle the financial position facing the country in an expeditious and determined manner;

acknowledges the extensive efforts of the Government to secure solidarity among the social partners and support for specific actions and the fact that the Government is acting within the framework agreed with the social partners; and

expresses its confidence in the Government's measures to stabilise the banking system, reform the tax system on the basis of the report due from the Commission on Taxation, and to place the economy on a sound footing for the future through the implementation of the framework for the restoration of sustainability in the public finances over the medium term as set out in the Addendum to the Stability Programme Update and the economic strategy of 'Building Ireland's Smart Economy' published in December 2008."

It is no exaggeration to state that this country is now fighting for its economic future. Unless we demonstrate the will to restore stability to our finances, there will be no economic recovery. The world is looking on. We need to persuade international markets and opinion that we are capable of taking the decisions now to put our house in order. If we cannot do that, we are in danger of losing all the gains we have made in the past two decades.

There are three inescapable facts that we must all face: this year we will have to borrow €4,500 for every man, woman and child in the State; more than one quarter of all our current bills, including pay, will be paid for by borrowed money; and the interest on the money we need to borrow will use up one third of all the income tax receipts we expect to take in this year, dead money that should be going to meet our public service needs.

Nothing will make these facts go away. No amount of e-mail campaigns or protests will change them. The problem is that we have an €18 billion hole in the public finances. We are experiencing an international recession of unsurpassed severity. Every major world economy is suffering or will suffer this year. Our problems have been compounded by unhelpful exchange rate movements and by our reliance in the recent past on the domestic market and the housing sector as the driver of growth.

Yes, mistakes were made, as other Governments worldwide made mistakes. Of course, if we could have foreseen the extent of the international crisis, things might have been ordered differently. However, as I stated here two weeks ago, I do not recall much of a clamour from the Deputies opposite for less spending, lower social welfare increases, higher taxes or higher levies. On the contrary, the Opposition fought tooth and nail against every tough decision made in the recent budget.

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