Kieran O'Donnell (Limerick East, Fine Gael)

I am delighted to contribute to this motion put forward by our deputy leader and finance spokesman, Deputy Richard Bruton. It is extremely important that we deal with what is probably the greatest economic crisis this country has ever faced. We find ourselves in a position today looking at approximately €22 billion of a borrowing requirement for 2009 and based on today's Government figures, we must find through tax rises and expenditure savings approximately €5 billion. That is broken down to between €1 billion and €1.5 billion in terms of expenditure. Some €700 million of this relates to social welfare payments, a direct consequence of unemployment. Some €300 million relates to increases in medical card payments which are also related to difficulties in employment.

The Government is lacking a proper job retention and creation programme. For every unemployed person, the cost to the State is €20,000 per year. That is apart from the social consequences for people losing their jobs. The Government has talked about finding these extra taxes and savings in expenditure but that should be matched by a proper job creation programme to keep people in jobs and by a proper economic plan.

We have heard that the Government has an economic plan but it is nowhere to be seen. This started in last October's budget, when the Government stated there would be an increase in taxes of the order of 1% over the previous year. That was not realistic. At that time it should have introduced a budget that was measured and which dealt with the ongoing difficulties that would arise. Instead we have had piecemeal activity in the form of the income and pension levies. Various Government members have referred to the Taoiseach bringing forward this supplementary budget but when he was in the House yesterday he made no mention of the word "budget". When he was in the House today it had to be dragged out of him that he would bring a budget forward in early April.

The problem we are facing is in the making of decisions. The Minister of State, Deputy Mansergh, said the Taoiseach will make decisions but it is not always just about making decisions, it is about making the right decision. When the social partnership talks broke down, the following morning the Taoiseach introduced a pension levy which was clearly divisive and had not been thought through. That measure has created, for the first time, a major divide between public and private sector which I very much regret.

These problems must be addressed as people want to see fair measures being introduced. We need proper reform. The Government has spoken about co-operation and Fine Gael has brought forward proposals on recovery through reform in Deputy Bruton's documents, both in July and October last year. These proposals were constructive but the Government did not accept them. Furthermore, members of Government has spoken about co-operation in dealing with the current difficulties in terms of the €5 billion shortfall, but they have not provided us with details of the spending programmes in individual Departments. They are effectively saying they want us to co-operate but they want to keep one hand tied behind our backs. They cannot expect us to be able to fully contribute without giving us the full facts.

The way the budgetary system operates requires major reform. Global increases are given to various Departments at budget time but no detail is provided in that respect. Every item of expenditure in every budget should have to be justified. It should not be a matter of giving standard increases across areas. We are dealing with taxpayers' money, which must be valued.

The Investment of the National Pensions Reserve Fund and Miscellaneous Provisions Bill to recapitalise the banks was dealt with earlier. We put forward proposals to ensure taxpayers' money is properly scrutinised. The Government has brought in legislation that allows the Minister for Finance and the Government to put further taxpayer's money into the banks in addition to the €7 billion that is now being put into them without having to come back to the Dáil to discuss such a proposal. That is not democracy. We put forward proposals to ensure proper scrutiny of taxpayers' money, given that the Government is putting €7 billion of such money into the two main banks. It is seeking to raise €5 billion, €1 billion to €1.5 billion by way of cuts in expenditure and €3 billion to €3.5 billion by way of tax increases.

More than 1,000 people per day are losing their jobs. Since last November more than 100,000 people have lost their jobs. These are all individuals, some single people and some with families. The Government is engaging in a sequence of events to raise €1 billion by way of cuts in expenditure and to raise revenue by increasing taxes, but it has put no economic plan to deal with job creation and to keep people in jobs. If people were kept in their jobs, the €1 billion in cuts would not be required. Those people make a contribution to the State in terms of taxes. Tax revenue is down in every area. In particular, corporation tax revenue has fallen, which is a clear indication of job losses.

I welcome the fact the gas and electricity prices will decrease by 12% and 10%, respectively, from 1 May. However, that overlooks the fact that gas prices increased by 20% last September, which means there will still be a 8% net increase in gas prices. Electricity prices increased by 17.5% last August and with the 10% proposed decrease there will still be a 7.5% net increase in electricity prices. Yet, the price of oil has dropped by 70% or more since July. We have to become competitive. A few key components are required, but the Government is not putting these in place.

I commend the motion to the House. I hope the Government will provide more detailed figures for individual Departments and specific proposals on items of expenditure in order that we can make a meaningful contribution.

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