M J Nolan (Carlow-Kilkenny, Fianna Fail)

——on the part of constituents. I am surprised the urgency of the problem is not getting through to some people. The bottom line is that revenues are falling at an inordinate rate and the economy is shrinking. Two years ago we were talking about potential growth of 4%, but now we are talking about a potential contraction of the economy of between 4% and 6%.

Whatever Government is in power will have to deal with this problem. If we do not generate finance, the only options are to borrow it or cut spending, or try a combination of both. This is what the Government is trying to do. The challenge facing the Minister for Finance, the Taoiseach and their colleagues is significant. They must save €2 billion or cut spending by that amount this year and save or cut a further €4 billion next year. If we think our problems as public representatives are difficult this year, I fear for the situation next year. Hopefully, we will see an improvement in the world economy and will, to an extent, benefit from that upturn.

The sheer speed of the economic downturn has caught everybody, not just here but internationally, by surprise. Ireland, as such an open economy, is doubly exposed to the downturn. The shortfall in the public finances will put significant pressure on all Ministers with regard to their spending budgets.

I agree with some previous speakers that this debate should not go down the road of public versus private sector workers. This attitude is being generated in certain media quarters, but cultivation of it would be unfortunate because it divides workers and families. The majority of individual workers are concerned and serious about trying to find a resolution to the problem.

What we see in the financial and banking sector is a cause of concern for people. The case is made that over the past 15 years banks have operated a cosy cartel for senior managers. Much of what is coming out of late tends to suggest there were some very close relationships between individuals at a high level in banking and business in particular.

One area I ask the Minister and the Government to examine seriously is that of families and individuals who have run into serious debt and are having problems with their mortgage repayments. They paid at the top of the market to buy themselves a house and now they find themselves having problems with repayments. I encourage the Minister and the Government to ensure that the banks look leniently on all those who find themselves in this unfortunate position.

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