Michael Kitt (Galway East, Fianna Fail)

I compliment him also on his support for the process of ensuring stability in the banking system and allowing banks to get on with their business. What he said today about the placing of a cap on the salaries of bank executives and the steps he intends to take is very welcome.

Building Ireland's Smart Economy: A Framework for Sustainable Economic Renewal, published last December, was a good basis for the negotiation that started with the social partners, as was obtaining their views on the financial adjustments required in light of the end-of-year Exchequer returns. It is important to point out the financial projections were submitted to the European Commission and that a very good discussion took place with the social partners. There was an endorsement of the need to adhere to the financial plan submitted to the Commission.

The most important point made by the Minister for Finance and the Taoiseach was on the savings of €2 billion required in 2009. The unions decided they were not in a position to agree on the full-year saving of €1.4 billion through the introduction of a pension levy but I do not believe the engagement with the social partners was a failure. There was general agreement on the need for the €2 billion adjustment and there was agreement on the overall framework. There is a definite link between the economic renewal strategy published last December and the contribution to be made by the public service to achieve the €2 billion adjustment. That is an important point.

As one who believes in social partnership, I am pleased we had that process, which was about engagement and sharing the issues to be discussed. The process went very well. Social partnership has shown us that major challenges face the economy. It also shows us the direction in which we should be going. For that reason, the partnership process has been very important.

I understand ICTU and other social partners have indicated that they are available to continue discussions on a range of issues based on the framework agreement. I hope we can continue to discuss the issues involved, which are very important. One such issue is support for enterprise. The Minister for Finance referred to that tonight and on many occasions previously. He emphasised the need to stabilise the financial and banking sectors and employment projects. I was pleased to hear the announcement last week on the allocation of an extra €75 million for school buildings and another €75 million for building insulation and energy efficiency projects. That development is especially welcome and the great interest in those projects is encouraging. The insulation of internal and external walls and ceilings is being progressed throughout the country. Measures on heating, boilers thermostats and ancillary areas are also welcome.

I attended a useful meeting last Thursday with representatives of the trade union, IMPACT. My two Fine Gael colleagues in the constituency also attended. While the representatives were critical of some aspects of the pension levy, they were more critical of Deputy Varadkar of the Fine Gael Party who has advocated laying off 10,000 public servants. They described him as a maverick. They were certainly not happy with some of the proposals he made. I have attended a few such meetings at which queries are raised about the pension levy proposals.

I look forward to a response from the Labour Party to the Minister's interesting point about the proposal on tax exiles that it made. One aspect of the pension levy that has been welcomed is the fact that it does not apply to people on pensions, contrary to a rumour that circulated initially. The deductions are charged in a graduated way and are less for those with lower incomes than for individuals with higher incomes.

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