Paul Gogarty (Dublin Mid West, Green Party)

I welcome the opportunity to speak on this not particularly happy subject. I have decided not to use notes, as I would rather speak from the heart to see what comes to mind. Sometimes, one would not say what comes to mind, were one being diplomatic. However, some tough things must be said.

As for the specific item of legislation, Deputy Mansergh suggested that Members should refer to the bona fides of the Bill itself. From that perspective, I am satisfied that my Green Party colleagues played a full and welcome part in that regard. It is not simply about the public sector pay element, to which I will return, but also pertains to other matters. Issues that were thrown into the pot because the situation is so dire included, for example, Christmas bonuses for pensioners and social welfare recipients. That would have been the most Scrooge-like measure to have been taken in the history of the State but things are so bad this was up for discussion. As for overseas development aid, some people assert that charity begins at home, although Members are aware that the conclusion of that saying is that it does not end there. Other groups have correctly observed that overseas development aid has been hit. I again am satisfied that through the input of the Green Party as part of the discussions, overseas development aid received more than otherwise would have been the case. The Green Party is playing its part in this respect and in acknowledging the tough decisions that must be made.

I have come in for much flak in recent weeks, as has every Government Deputy. The extant vehemence and anger to which I will refer later is completely understandable. However, if one wished to be popular, one would cross over to the other side of the House immediately. That is where one receives claps on the back and plaudits for taking brave decisions, blah, blah, blah. Unfortunately, however, having repeatedly wrestled with my conscience, the question is, what is in the country's interest? It is in the country's interest to have some form of stability and a message to go out to the international vultures that Ireland is open for business, although the shopfront is looking somewhat tattered. Our shop is open for business and we are becoming more competitive by the day in comparison with our European colleagues because of the measures that are being taken. Were they not taken, our lending ratings would have worsened and our ability to borrow might have disappeared altogether. Certainly, we would have been obliged to make punitive repayments and had the IMF come in, which was a possibility at one point, public service jobs would be lost. A diktat would have been laid down to the effect that Ireland was no longer a sovereign State and that cuts must be made here, here and here. For that reason alone, the Government must be commended on making the tough, responsible decisions.

Members from all sides of the Opposition have made some valid points as to how these cuts should be implemented. While such a debate is to be welcomed, no one disagrees that the cuts had to be implemented and had to be implemented on the day they were announced. I have tabled a rake of questions to the Minister for Finance in particular to try to ascertain the levels of fairness in respect of the public service levy. I tell constituents who e-mail me that they should not be misled. This is not a pension levy but is in fact a salary cut. That is how I take it but it is framed as and termed a pension levy to protect eventual pension payments. However, it constitutes a pay cut in reality. Public sector workers have been vilified over the years and in my last contribution in this House on the subject, I criticised this because when times were good and the cranes were soaring across the sky, the diggers were digging and the drills were drilling, people in the public sector got on with their work although the pay was not commensurate with that being made in the private sector. I do not refer to everyone in the private sector.

We should remember that there were people the Celtic tiger never reached. However, a large swathe of the population did very well. I am not talking about the people I referred to as "scum" in a previous debate, rather I refer to ordinary people who made good money during the Celtic tiger years. Workers in the public sector, on the other hand, although they enjoyed job security, perceived the unfairness of many private sector workers making far more money than they were. Part of the reason public sector workers are so angry is that they are effectively being asked to take a pay cut, even though many of them did not reap the benefits of the Celtic tiger. They saw private sector workers doing comparatively better, while they did not have their time in the sun or the time to re-balance. I have sympathised with public sector constituents and acknowledged that it is unfair they have not had the time to re-balance. The reality, however, is that with the economy declining as it is, the comparative strength of the public sector is rising rapidly. If all ships are sinking to varying degrees, it is of little solace to be told that one's ship is not sinking as quickly as others. People are naturally reluctant to face up to the reality of the figures. As the Minister for Finance indicated in response to parliamentary questions I tabled, it is now the case that remuneration in the public sector in general, including pension entitlements after retirement, exceeds that available in the private sector. As jobs are lost, the benefit of a public sector job increases. As pensions falter at the whim of international stock markets and as a result of global recession, the desirability of a public service pension rises. Nevertheless, it is harsh medicine for public sector workers to be told that while they may not have had time to re-balance, it is now time to do their patriotic duty by taking the pension levy hit.

The reality is that there is no other way to proceed. Opposition Deputies have tabled various proposals but I do not intend to go into the minutiae of what is right and wrong. There has been commentary in the media on Fine Gael's proposals and whether the figures add up. Valid questions have been asked about the fairness of the Government's proposals. Nevertheless, nobody is denying that action must be taken on public sector pay. However, there are anomalies that must be addressed. For example, a person on a comparatively smaller income will apparently take a greater hit as a result of the pension levy than his or her colleague on a higher salary. Likewise, a person who receives a pay increase €2 greater than his or her colleague will end up €10 worse off. These details must be tweaked. The Minister for Finance has indicated his willingness to address these anomalies provided the overall saving figure is protected. I am not privy to such conversations but it may well be that the tweaking will have to wait until the budget. The Green Party will emphasise the importance of addressing these anomalies and we expect the necessary action will be taken. This would address the general issue of fairness.

The other major issue is one that has no relevance in terms of Exchequer savings but which is powerful in terms of narrative and perception. We have all heard about Banker A whose remuneration may be reduced from €2.8 million to less than €2 million and Banker B who will have to cope with a decrease from €1 million to €750,000. This is Monopoly money. These are the sums we all have in mind when we play the national lottery. There is a general consensus that the people concerned have suffered no punishment. I do not refer to legal punishment. We all hope the legal process will follow its course and I do not wish to cast aspersions on anybody with reference to criminality. However, I am in agreement with my party leader, the Minister for the Environment, Heritage and Local Government, Deputy Gormley, that it is to be hoped certain individuals will be handcuffed. There are certainly those who are deserving of prison sentences. However, we cannot name individuals for fear of prejudicing any investigations. It seems immoral that some are earning so much while others, on much smaller incomes, are obliged to take a pay cut. There is something wrong about this. The onus is on the Cabinet to act. My colleagues, particularly the Taoiseach and the Minister for Finance, must accept their share of responsibility to address these issues. I understand there is agreement that the remuneration of high flying bankers and chairpersons of boards will be reduced significantly. I welcome this.

We can argue all day about whether it was necessary to nationalise Anglo Irish Bank. The debate has been ongoing since September. The Government's position is that if Anglo Irish Bank had not been bailed out, the banks would have fallen like dominoes as international speculators transferred funds rapidly out of the State. Regardless of one's view of the corporate culture at Anglo Irish Bank, there was a need to recapitalise the banks. Prior to that, there was a need for a bank guarantee scheme and, most recently, a need to nationalise Anglo Irish Bank. At the same time, there is a fair and balanced argument against all three of these measures. However, it is not evidence of incompetence, panic or any form of corruption for a sovereign Government to make these decisions. They were taken in the interests of the State. They may prove to be right or wrong, but they were made as quickly as possible in the circumstances. The Taoiseach and the Minister for Finance should be commended in this regard. However, the House must do more.

Deputy Mulcahy has stated the problems we face arising as a consequence of global factors. We are all aware there is a global recession. I am currently reading an interesting and informative book entitled The History of Money which has been adapted for a television series. There have been bubbles, speculation and crashes during the centuries. As we are always told, these events are cyclical. Just before the 1929 crash, there was a belief a plateau had been reached which would last forever. Likewise, those involved in the cosy cartels within the construction industry in the State assumed house prices would continue to rise indefinitely. The narrative was that we were all in for a soft landing, to be followed by a speedy recovery and the continuation of everything just as it was. For the past ten, 15 or even 20 years we have been engaged in what Ronald Reagan described as "voodoo economics". I referred to this in one of my first speeches in the House in 2002. This is where no account is taken of the social and environmental cost of particular policies or the real wealth in the economy. That is what has happened in the State. Voodoo economics caused "bubble, bubble" and have now led to "toil and trouble". Shakespeare proved himself to be a great soothsayer. There will be much toil and trouble for everybody.

People will knuckle down and take some pain if they see that there is fairness in the Government's approach. For example, there must be fairness in the remuneration to banking executives. There must also be fairness in political reform. In this regard, I was somewhat amused by Deputy Kennedy's contribution in which he had a good go at Fine Gael about its benefactors during the years. While his criticism might be deserved, it was a little disingenuous for a Fianna Fáil Deputy to be slinging mud in this manner. The attitude seemed to be that it was okay for Fianna Fáil to have engaged in such activities because Fine Gael was at it too. This ties into Deputy's Naughten's remark that the Government is not prepared to lead by example. However, the Opposition seems equally unprepared to lead when it comes to restoring faith in politics.

My comments on the culture of corruption and backhanders in the Fianna Fáil Party are on record. There is a sense of moral corruption associated even with the legitimate political donations in which Fianna Fáil Deputies have been dipped for many years. At this stage it is almost a state a mind or an illness like alcoholism. There is a culture of denial. Deputy O'Donnell has observed that accepting one has a problem is the first step in addressing it. Support groups helping those battling addiction often remind them of the old plea, "God grant me the serenity to accept the things I cannot change, courage to change the things I can, and wisdom to know the difference". If there is collective wisdom in the House, we will know the difference between a decision taken in the public good and one influenced unduly by the interests of bankers, developers, big business or trade unions. If we are wise, with the benefit of hindsight, we will make sure this does not happen again. Every time an Opposition Deputy accuses a Fianna Fáil Deputy of corruption, knowing that the Opposition party dips into the pot — however legitimately — that is moral bankruptcy. If we want to lead by example, Opposition Deputies should say there will be no more corporate donations, that they will be abolished. Deputy Michael Noonan did this before the 2002 general election.

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