Michael McGrath (Cork South Central, Fianna Fail)

I very much welcome the opportunity to support the amendment. Yesterday the Government took an important decision to provide certainty that the deficit in the public finances in 2009 will not be allowed to exceed 9.5% of GDP, as set out in the stability programme submitted to the European Commission in January. Clearly, staying within the 9.5% deficit will require enormously difficult decisions to be taken but it is not sustainable to have Exchequer deficits of between €18 billion and €20 billion, which will increase if corrective action is not taken. The national debt expanding at its current rate and the collapse in taxation receipts are unsustainable. In 2007, tax revenue was €47 billion. In 2008, it fell to €41 billion. It is estimated that tax revenues in 2009 will amount to €34 billion or €35 billion, possibly less depending on which commentator one believes.

This financial and economic crisis represents the single greatest challenge to the well-being of our Republic since its foundation, so grave and serious is the situation. However, the crisis presents an opportunity for us to show that the political system can work and has the capacity to bring the country through the turmoil that has affected almost every family we represent. The bottom line is that we have no choice but to face up to our problems. There is no bottomless pit of international debt of which this country can avail. We are competing with almost every other country in the world for a limited pool of available debt on international markets, which will judge us harshly if we fail to take control of the public finances. The markets are ruthless and we must stop believing that the world owes us something. We must resolve this situation ourselves, a process that must start in the House. If we do not resolve it, others will do it for us on terms that are far more unpalatable than those introduced by the Government in the first week of April.

The Government is prepared to make tough decisions with no regard for the consequences in terms of electoral popularity. We have been elected to govern in bad times as well as good times, and govern we will. However, not only the Government has a responsibility at this time. As Deputy Thomas Byrne stated, the Opposition has been elected by the people and must stand up to show what it is made of.

This morning during Leaders' Questions, when the Taoiseach announced that the supplementary budget would be introduced in the House during the first week of April, howls of derision came from some Members across the floor. It was suggested that introducing the budget on Wednesday, 1 April would be some type of April fool's joke. People are losing their jobs in their thousands. The least that they expect of us as their leaders is the capacity to deal with the crisis with a degree of political maturity. The Opposition can take the easy option and be all things to all people, which it has done since this crisis unfolded. The income levy was opposed, as were the public sector pension levy and the recapitalisation of the banks. The Labour Party even opposed the bank guarantee scheme that saved the banking system from collapse. The fact is that every Government initiative to get to grips with the economic and financial crisis has been opposed.

Like everyone, I recognise the fact that there are people on all sides of the House who have expertise and experience that can help us at this time. I welcome the approach taken by the Minister for Finance in bringing in the Opposition spokespersons. This crisis is beyond party politics. If we do not demonstrate that we have the courage, ability and intelligence to deal with it, confidence in the entire political system will be demolished.

We will need to show leadership in the way in which the Houses do business. The number of Oireachtas committees, the system of Members' expenses and the number of Ministers of State must be examined. We cannot with any credibility tell people outside the Houses that they must accept pain while we fail to reform the political process designed to serve them.

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