Simon Coveney (Cork South Central, Fine Gael)

It is not easy to follow Deputy Ring. However, I am glad to have an opportunity to make a brief contribution to the debate.

What is extraordinary is that those in government seem to be the only ones who are surprised by the Exchequer figures announced today. The Government has responded to them by saying it will have to change tack again in its management of the public finances. It may, by the end of the month, have to introduce a new budget and cut backs. What happened today was absolutely predictable. People have been predicting it for four months. The figures on which the Government has been working, in terms of where Ireland will be at the end of the year, are not realistic, as everybody has been telling it. However, it continues to peddle the myth that somehow Ireland will come out of the mist and be okay. It is as if we will wake up in the morning and there will be prosperity again in Ireland. The truth is the Government has not only failed to lead in introducing policies but, more importantly, also failed to lead by communicating with the people and telling them the truth about the crisis created by its mismanagement and the series of other elements outside its control happening outside the country.

What has the Government done in response? It has avoided telling the people the truth and continually avoided making decisions until forced to do so. When Fine Gael called for a public sector pay freeze last October because it knew it was the only responsible thing to say at the time, the idea was dismissed by the Government which stated Fine Gael was anti-public service. Three or four months later, it had to bring forward measures which were far more extreme and introduce pay cuts. When Fine Gael stated it would be necessary to recapitalise banks for them to survive, its proposal was dismissed by the Government and the banks as unnecessary, but what has happened since? The Government has had to do this. When Fine Gael stated it would be necessary to nationalise Anglo Irish Bank, the Government dismissed it as being out of touch and stated it did not understand the figures at Anglo Irish Bank. One need only look at what has happened since. Last week and the week before Fine Gael called for a mini budget to introduce new revenue raising measures to try to make a positive impact on the growing deficit. Again, itt was dismissed by people such as the Tánaiste, Deputy Coughlan, who said the Government had everything under control. The reality is that because of the way the Government has behaved and communicated, politics has broken the trust between itself and the people. The people are crying out to be led and inspired, even if that means hardship.

The people understand the situation. They are not fools, even though they are treated as such by the Government. If the situation is explained to them properly, they will understand the crisis Ireland is facing in terms of the Exchequer figures, job losses, the banking sector and the range of measures needed to tackle the crisis. They will understand and accept that we need to respond in an appropriate manner, but what they will not accept is a Government which leaves the country limping along without leadership and which, month after month, introduces new measures in response to the latest crisis because that is what continues to happen.

Last year the Government took in just over €40 billion in the tax take. In the first two months of this year we are already €1.5 billion short of last year's figure. If that is replicated in the next ten months of the year, we will be €9 billion short of last year's tax take. Does the Minister of State know what that means? It means we will be €23 or €24 billion short in terms of a deficit. Instead of having to save €18 billion, it will have to save €23 or €24 billion. That is what we are talking about and the gap which must be closed.

The Government must give leadership. It might be surprised if it does because the Opposition parties are moving beyond simply bashing it. It might even receive some support here if it makes some brave decisions.

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