Peter Kelly (Longford-Westmeath, Fianna Fail)

The global recession has severely affected Ireland as a small open economy. It gives me no joy to have to say that. It is sad, but factual that we find ourselves in a very serious situation. Unemployment is rising, many people in the private sector have taken wage cuts and people are extremely worried about their future and their children's future. This recession has been compared by some to the depression in the 1930s. We find ourselves globally in the worst situation since 1929. Clearly there are similarities. The main difference is that this time it is global. Every country and every sector of the economy is affected. It is no exaggeration to say we are living in extraordinary times. Extraordinary times call for extraordinary measures.

A supplementary budget is necessary to restore this country's public finances. It is evident that our public finances have deteriorated rapidly since October. This year it is estimated that there will be a €20 billion deficit in the public finances. The Government must curb public spending to plug this gap. We cannot continue to spend and borrow, and saddle our children with a lifetime of debt. That is why the Government is making tough and unpopular decisions to restore the country's public finances and our international reputation. We are doing what is in the best interests of the country to best position ourselves for when the upturn comes.

Some commentators have berated the Government for what they perceive as a lack of stimulus packages. Yet, next week will see the launch of the national insulation programme, which will provide householders with reduced energy costs while providing work for construction workers all over the country. Likewise the Minister for Education and Science, Deputy Batt O'Keeffe has provided €680 million for the schools building programme. The combination of these investments is expected to provide 10,000 jobs this year. All national road projects at the planning stage will be reviewed and reprioritised so that those projects that support the most jobs will be built first.

Last December the Government launched its document "Building Ireland's Smart Economy". This sets out our roadmap for Ireland's move back to growth and prosperity over the next five years. Competitiveness is clearly an issue. It is key to sustaining employment. The depreciation of sterling against the euro has had a severe impact on Irish exports. Cost competitiveness remains critical to ensuring companies based in Ireland have the ability to compete successfully in international markets. It is vital if we are to continue to attract foreign direct investment. In 2008 foreign direct investment resulted in the creation of 9,000 jobs. Enterprise Ireland continues to provide a range of supports for high-potential start up companies, including financial supports, business and market intelligence, mentoring, innovation and research and development. More than 10,500 new jobs were created in Enterprise Ireland client companies in 2008.

Every day brings more stories of redundancies and pay cuts. Behind these statistics there are hardworking men, women and families who are lying awake wondering how they are going to survive. We are committed to helping these people find jobs. This year FÁS will provide an extra 51,000 places under traineeships programmes for job-changers or those who are unemployed. This year the 35 city and county enterprise boards will receive funding of €34 million. This will enable the boards to be actively involved in economic development and will ensure available funds are targeted to maximise entrepreneurial development around the country.

Investment is also coming from the European Union. Earlier this month the EU Commissioner for Regional Development announced that €105 billion will be invested in the green economy through the EU cohesion policy. Ireland will benefit from over €153 million in funding which will cover transport, environment, energy management and regeneration schemes.

I have touched on three out of four of the Government's cornerstones for recovery: getting public finances in order, sorting out the banking situation, protecting and creating jobs and looking after those who have lost jobs. There is a strategy in place. By taking the tough decisions now Ireland will recover and return to prosperity. There is no magic bullet. A variety of economic measures have been introduced in countries around the world to deal with the banking and economic crisis. There is no magic solution. It will take patience and decisive decision making to restore stability and confidence. We are living in extraordinary times. The Government has its work cut out, but the introduction of a supplementary budget is an important step to restoring prosperity in the medium to long term.

Yesterday my colleague, Deputy O'Rourke and I met the midland branch of the Carers Association of Ireland to discuss the forthcoming budget on 7 April. We realise that carers give their lives to caring for the elderly, infirm and disabled in their homes.

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