Andrew Doyle (Wicklow, Fine Gael)

IMPACT held a meeting in Wicklow last night and the message that came across is that people in general and public sector workers in particular want to know the truth. They wish to know the extent of the problem. They are terrified that this is not the end and that when higher taxes are introduced, either later in the year or in the budget, they will be hit again. As previous speakers stated, these people are strongly of the view that they did not cause the downturn in the economy. Meanwhile, those who should be held accountable are getting away scot free.

In the Government amendment to Fine Gael's Private Members' motion, the issue of capping the salaries of those who run the banks that are seeking recapitalisation has been overlooked. There is no doubt that the motion, as amended, will be passed by the House tomorrow evening. Most people would consider annual salaries of €250,000 for those in the banking sector who caused the problems we are facing as being more than generous. However, all the Government is doing is imposing a 25% cap on those who earn €2 million or €3 million.

In concluding his speech on budget day last October, the Minister for Finance stated that the budget was "no less than a call to patriotic action". If ever legislation was designed to divide the country, it is that currently before the House. As Deputy Noonan indicated, the preamble to the Bill refers to sharing the burden. I accept that many in the private sector have lost their jobs and that public sector jobs are somewhat more secure. However, there is no doubt that those in the public service were prepared to play their part in assisting the process of making cuts in public expenditure.

Last week the Committee of Public Accounts issued a report on FÁS, which has a budget of €1 billion. The report indicates that €35 million of this was spent on advertising. In addition, it states that some procurements and tenders were not appropriate. The committee made a recommendation which, if the legislation had permitted, would have been stronger. This matter could have been referred to the Director of Public Prosecutions to carry out an investigation.

On the day on which the Garda fraud squad raided the bank the Government nationalised, this legislation, which will oblige people earning €15,000 per annum to pay a pension levy of €400, is being debated. It is not correct to state — as did Deputy Thomas Byrne — that people earning €25,000 will only pay a percentage. The money in question will be deducted from these people's essential daily incomes. Those on higher incomes have somewhat more flexibility and it is, therefore, not fair to say this measure is weighted in favour of the lower paid. Those on lower pay should not be subject to the levy. The latter would only be fair and reasonable.

As already stated, people want to be told the truth. They also want leadership. We want to know the extent of the problem in order that we might provide assistance in dealing with it. People want to hear those who have been in power for so long stating that not everything they did in the past was correct and that they have made mistakes. It seems to be beyond the members of the current Administration to acknowledge the shortcomings they have displayed while in power.

I wish to provide an example of the Government's short-sightedness. When announcing the cuts of €2 billion, the Taoiseach stated that €300 million in savings would be achieved in respect of the capital programme as a result of the submission of more competitive tenders. He indicated that work on certain projects could be done for 20% less. I suggest that the €300 million in savings to which he referred could be used to achieve 20% extra for the economy. For example, if it were used to keep 5,000 people in employment, an additional €50 million would accrue to the Exchequer as a result of their paying €10,000 each in income tax. In addition, this would lead to €20,000 per capita — a total of €100 million — being saved in unemployment benefit payments. Therefore, half the €300 million in savings to which the Taoiseach referred would have been obtained before savings were even achieved.

A nursing home in Bray, County Wicklow, has been obliged to close down because it constitutes a fire hazard for older people. It will cost €10,000 per week — €500,000 per year — to place those who lived at the home into outsourced beds. If this was replicated at 50 other locations throughout the country — which could easily be done — the total saving would amount to €100 million.

The example of FÁS highlights that a black hole exists in the context of there being too many members on boards. The Committee of Public Accounts recommended that the board of FÁS be reduced from 17 to nine members. In addition, FÁS has a number of sub-committees, committees to oversee expenses, etc. As an organisation, it is all over the place. The approach of keeping everybody happy must be brought to an end. We should have explored what could be done in this regard before attacking those who earn €15,000 per annum.

Retained firefighters, who work on a part-time basis, have not been able to obtain an answer as to whether the levy will apply to them. At the end of their period of service, these individuals obtain a gratuity rather than a pension. However, they cannot obtain a simple answer whether the levy will be imposed on them. There has been a great deal of discussion with regard to retained firefighters, not least those who serve in my constituency.

What the country needs, if it is to encourage people to pull together, is a thriving private sector which can pay for an efficient and progressive public sector. There is no doubt that the public sector requires reform because it has become too large. However, what is being done by means of this Bill should have been done in a way that is fair to everyone. Fair play is what is required but it will not be achieved as a result of the passage of this legislation. I urge the Minister for Finance to consider the amendments that will be tabled by the Opposition on Committee Stage because they will be aimed at assisting the country in addressing the financial challenges it faces.

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