M J Nolan (Carlow-Kilkenny, Fianna Fail)

I welcome the opportunity to speak on this motion. As my colleagues who are speaking on this side of the House have said, it is only now the scale of the problem we are facing is beginning to hit home to those on all sides the House. Yesterday there were very sobering announcements of the falling revenue stream and, something which could have been missed, an increase in expenditure which is unfortunate at a time when our income is reducing. We must engage with all sides to find a solution to this problem. Comparisons have been made with the 1980s when we experienced similar problems. The difference is that back then we did not have the international economic downturn, which is now evident to everybody.

The Government must find efficiencies in all its spending and Departments. I am sure there are areas which can be examined and savings made. The mini budget later this month or early next month will affect the 1.8 million people still working. It is important to note that almost 2 million people are working and even though our unemployment rates are high we still have a large workforce. People who are in employment and are asked to pay even more in personal taxation and indirect taxes will look for better value for the taxes they are paying and Government spending.

It is important that best practice in doing business is put into place by the Government. I know all its decisions and actions will be taken for the right reasons. We only need to hear the news this evening of major job losses in Waterford and the blue chip accounting firm, KPMG, which announced 200 redundancies. These individuals are well qualified in their specific areas and fields. It brings home to us all the difficulties being encountered in the real world of the private sector.

The five year framework for the restoration of the public finances must be achieved. We do not have many options in that regard and we must restore the current budget position to a balanced budget by 2013. A lot of this is about confidence. This Government and country must ensure there is international confidence in the way we do our business here. We must engage with and have the confidence of our international partners and bankers, on whom we will become more and more reliant for the next two, three or four years to continue to run this economy.

It is also important to remember those well-qualified individuals who, through no fault of their own, have lost their jobs. Those responsible, in whatever way, for landing us in the mess must also take responsibility for that. Allied to the disappointing tax revenues we saw yesterday is the increased pressure on the expenditure side of Government spending, particularly in recent months when there has been a large increase in the numbers on the live register. It has a double impact because when people are working they are contributing to the national Exchequer but when they are not working they must be paid by it.

The Minister and Government are working hard to try to bring this to a successful conclusion. The important message to go out is that we need support from all sides, including the parties opposite. I wish the Minister and Government well.

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