Martin Mansergh (Tipperary South, Fianna Fail)

The Government and the country have been in crisis management since last July, and particularly since last autumn. Most of the rest of the world is in a similar position. Crisis management requires a series of actions or responses until the situation is stabilised and brought under control. While there is normally merit in deploying minimum force rather than engaging in overkill, sometimes the imperatives of the situation take over. Following the further steep fall in revenue in the first two months of the year, not just expenditure reductions but a full response is needed to maintain the previously announced budgetary course. There is a widespread public appreciation at this stage of the acute difficulties facing the country and an appetite to address the problems now, and if possible, remove at least some of the uncertainty facing all of us.

There is not time now to enter into an analysis of the causes of the crisis as it affects Ireland. Until about this time last year we enjoyed by far the best period in our history over some 20 years. There were also mistakes made. In particular, we failed to modify our exuberance and underestimated the downside risks. No Government will ever succeed in abolishing the economic cycle. If critics were willing to give credit for the achievements, it would be easier to acknowledge responsibility for the mistakes. One of the saving steps we took was to put surplus funds into the National Pensions Reserve Fund, which enables us to deal with the banking crisis without having to compound the already horrendous scale of our fiscal deficit.

Government and opposition have distinct and equally honourable roles in a parliamentary democracy. When critical decisions have to be made, it is all the more important to have opposition expressed in the House rather than transfer it out onto the streets. The Tallaght strategy, which played an important role, was a product of particular parliamentary circumstances. This Government has a working majority, unlike then. I see no merit in calls for a national government, or what is in effect a suspension of democracy.

As to a mandate, every elected Government has a mandate to deal with unexpected crises and emergencies, short or prolonged, that arise during its time in office. With regard to the Taoiseach's position, it was clearly indicated to the electorate that he would be the likely successor to Deputy Ahern during the course of this Dáil and, therefore, he manifestly has a mandate. If anyone doubts the ability of the Government under his leadership to take all necessary action, just watch this space.

With regard to expenditure reductions, the Office of Public Works will shortly establish a national operations unit for public procurement, designed to achieve savings, or more from less, in Government expenditure. All public servants, including officeholders, have a duty to identify and implement savings wherever they can.

A supplementary budget will enable us to address issues that have arisen since last October without waiting until the autumn. It will enable the Government to demonstrate the fairness and balance the public demands on a broader canvass. The input of the social partners, as well as of all parties in this House, will be welcome. People will accept a great deal if they see it is fair. The tax system has to become a lot more broadly based, particularly as many of the sources of revenue, capital, corporate and stamp duty, which flowed so abundantly, have to a great extent dried up.

The generous scale of exemptions at all levels are bound to be more limited. The cost and benefit of tax breaks will have to be examined with new rigour. Those who benefited best of all in the Celtic tiger years and went far ahead of everyone else face, to recycle a phrase, payback time. Added to success and achievement, some of those who have greatly contributed to Ireland's standing in the world and to its prosperity could add to their nationality, citizenship and practical patriotism, the additional honour and dignity of being an Irish taxpayer.

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