Dara Calleary (Mayo, Fianna Fail)

I welcome the chance to speak on this motion and the changed context signalled in the past 48 hours, namely, the involvement of Opposition spokespersons in discussions this morning with the Department of Finance at the Minister's invitation. I encourage him to extend that invitation beyond the House to those involved in social partnership — it may be the way to return them to the table — and to the commentators who seem to have all of the answers, but who dismiss the work done by all sides of the House in our efforts to respond to the crisis.

I echo Deputy Michael McGrath's remarks on the challenges presenting to the Republic. Every Deputy must be conscious of those who sat in the House before us during much tougher economic and social times. We owe it to those people who gave us the right to be present today to fight for the country in the days and weeks ahead.

The Government's decision on the mini-budget yesterday, irrespective of the day on which it is to be delivered, I hope, will bring certainty to the economy and people's lives, those who wish to plan their incomings and outgoings for the rest of the year. If there are to be increased taxes or more levies, we must know to allow us to plan. It will also bring certainty to business in terms of its expenditure and taxation plans, as confidence and certainty have been lacking in the business market. In designing the revised budget in the coming four weeks, I encourage the Minister to consider a number of proposals, to use the Department to cost them and to decide that an initial cost might lead to the stimulation of economic activity, which is being sought.

Taking the example of VAT, some people have not taken any hint recently. While some still have money to spend, they are unwilling to spend it due to a lack of confidence. Some imaginative work on VAT and other issues could be the key to unlocking that expenditure, which would protect jobs in our retail and hospitality sectors.

I ask the Minister to consider the various stimulus packages being offered by the motor industry, which should be acted on before 1 April to try to stimulate some activity therein. I also ask him to examine the various community and State initiatives that we could unlock by involving the elements of the private sector that still have access to credit or may access it via the banks' recapitalisation in the coming weeks. This type of initiative would promote growth and economic activity.

There is no doubt that the decisions to be taken on 1 April will be tough. No one likes to increase taxes or to cut expenditure. However, both are necessary if we are to sustain our economy and return to circumstances in which we can improve investment in services. Ahead of the budget, every Deputy should take the opportunity to recast the country by presenting proposals and thoughts to the Minister and the Opposition spokespersons.

I echo Deputy Darragh O'Brien's remarks on Government strategy, which has been pilloried by many. The Anglo Irish Bank case is a good example. Many suggested that the bank should have been liquidated and that we should have moved on, but international investors' interest in it in recent days shows that the strategy was right. The bank guarantee strategy was perfectly right, particularly given the current pressure on the banks. The recapitalisation strategy is the proper way to go, given the guarantees on mortgages and small business lending achieved by it.

Last week's comments by the president of the European Central Bank, Mr. Jean-Claude Trichet, were significant, but might have been lost in the gathering economic doom. It is important that they be communicated to the world's markets. There is a perception that we are weaker than he portrayed us to be. These challenging times have shown the value of our membership of the euro zone and the EU. Later this year when we have the opportunity to debate our EU membership, we should not be behind the door in shouting about the fact that, without our full-blooded and vigorous participation at the heart of Europe, our situation would have been much more dangerous.

The next couple of weeks will give everyone a chance to put his or her cards on the table and to let his or her vision of where the country will be in the next 18 months to two years be known. This should be done in a non-partisan manner, but there will inevitably be partisanship. Using the facilities offered by the Department and the expertise available to every side of the House, we should be in a position to devise a budget in April. While it will be tough, it will finally put us on the road to some sort of hope and recovery. As a House, we should take the chance with both hands.

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