Cyprian Brady (Dublin Central, Fianna Fail)

I will perhaps bring some constructive comment to the debate and I welcome the opportunity to contribute. Nobody in the House is unaware of the tough and unprecedented times we face. The forthcoming budget must be fair and equitable. If that is our bottom line, we can ensure the required changes will be made in such a way that people will support them, including those who have lost their jobs. The changes will be made primarily to ensure workers retain their jobs.

Members have debated how and why we have arrived at this point. Members of the public watch and listen to news broadcasts 24 hours a day, seven days a week and, therefore, we cannot blame those who are worried and extremely concerned. As a small, open economy, Ireland exports more than 80% of what it produces and, as a consequence, we are more vulnerable in a downturn. However, over the past six months the so-called tiger economies in Asia have contracted more than our economy has over the past three or four years. We must compete with these economies.

Over time through prudent investment in education and business, Ireland has managed to punch above its weight globally. In the early years of this decade, Ireland was the largest exporter of software in the world. That did not happen by accident. The employees of the companies involved should have had jobs for the ten or 15 years of this success. That happened through prudent management of the economy and an enabling fiscal programme. We must maintain that confidence in ourselves. We can talk ourselves into this or out of it. However, to compete as we did in the past, we must concentrate on the areas over which we have control, including taxation and Exchequer spending, and how we spend money on services to which people have grown accustomed over the past 20 years and on the public service, which provides day-to-day front-line services in our hospitals, on our streets and in offices. These services are not provided of their own accord, as they must be put in place.

Last year, circumstances over which the Government had no control changed and it has had to adapt to an unprecedented rate of change. No Opposition Member has read the framework for sustainable recovery document, which sets out what the Government is doing. The document highlights that the gap in the Exchequer finances must be tackled, the banks must be sorted out, jobs must be protected and created, those who have lost their jobs must be supported and Ireland's international reputation must be restored by strengthening our domestic corporate governance arrangements. The Government parties are in the middle of doing this and the budget is part of the strategy. It is necessary because we must demonstrate to the public, foreign investors and businesspeople who will create jobs in Ireland or who will provide money for borrowings, that we can manage our way out of the downturn. Basic economics dictate there will be peaks and troughs and when the economy inevitably picks up, we must be in a position to take advantage of that situation.

It does not matter who is sitting in the Taoiseach's position. The decisions he must make now and in the future are not easy but, as with a business or household budget, one cannot spend what one is not taking in. Over the past decade, Fianna Fáil has reduced the national debt. Where would we be if we had not done that? Many countries are saying they are in a worse position than Ireland. We have a proven track record in prudent management and we should take advantage of that. When times are good, people have a different outlook and, therefore, we cannot blame people who are concerned and worried. Every day I meet people in Dublin city who are greatly concerned about what will happen over the next six months, never mind over the next two or three years.

There are areas in which investment needs to be maintained and, where possible, we must ensure such investment takes place. Education is the key. Successive Governments have invested in the education system and third level graduates are much more confident and educated. We must provide them with a future. People who have lost their jobs in recent times must be supported and, while we accept the number unemployed will increase, we must do something about it through training, further education, upskilling and so on, which must be paid for.

A banking system is necessary to run the economy but it needs to be overhauled and the Government is engaged in this process. The vast majority of bank officials are talented and they do a good job. A small number lost the run of themselves in recent years. Everybody accepts that and we must deal with that. Practices must change radically and customers must be protected. When one considers how banks have changed the way they do business, for instance, over the past decade, it is no wonder people do not trust them. They have done everything to discourage customers from using branches. One almost needs an appointment to talk to a teller. They have changed the way they do business and this has resulted in people losing trust in them. This issue must be tackled.

We are in a particularly tough place but the most vulnerable in our society must continue to be protected. Fianna Fáil ensured pensions and social welfare rates increased over recent years as well as an expansion of services. Special needs assistants did not exist ten years ago but they play a significant role in our society today. We must protect such services and the only way to do so is to ensure money is available at the end of each fiscal year to pay for them. In the present climate, it must be ensured that the changes that are made are seen to be equitable. Many people have said they are willing to make sacrifices and we must tap into the acceptance that we are where we are and we need to do what we need to do. This is another step in the Government's plan.

People cannot be blamed for being worried. The Government must strike the correct balance between the amount it takes out of the economy to pay for services and social welfare payments and protecting jobs, while encouraging employers to create and retain jobs. We need businesspeople who are willing to take a chance to get into the marketplace and sell. The more we support such people, the more we will get back in the long run. The Government has a plan but we must have the courage to stick to it and to implement it.

See this speech in context