Eamon Ryan (Dublin South, Green Party)

It is important to understand the scale of the difficult issues we are facing. I wish to address briefly both of the crucial issues that had to be addressed in yesterday's supplementary budget - the public finance figures and the banking issue. It is important to get a basic understanding of the simple budgetary figures. It is projected that the State will have an income of between €33 billion and €34 billion this year. The projections vary depending on the economic climate. I will outline what that money will be spent on. Two thirds of our income has to be used to meet our social welfare bill of approximately €24 billion, which is increasing in line with unemployment. We spend an additional €20 billion on the wages of our public servants, including teachers, gardaí, hospital workers and street cleaners, who do vital work. We already have to borrow approximately €10 billion before we buy a stick of chalk for a school, a lick of paint for a street sign to keep people safe on the roads, or a litre of petrol or diesel to get our buses to work. Any person in his or her right mind will agree that we have to address such a fundamental imbalance. It is not a question of attacking the public service to try to get cutbacks, or unnecessarily targeting families in lower, middle or higher income households.

We recognise that if this country is to work and to make ends meet, we have to increase its income while reducing its spending. It is right that we have decided to undertake that process over the next four or five years. The crucial message that is being transmitted by this country - that we are willing and able to deal with this problem - is not being transmitted by other countries. We are getting to grips with this matter by taking difficult and unpopular actions that we would prefer not to have to take. Earlier this year, for example, we decided to introduce a pension levy to reduce the public service pay bill. We are showing that this country has the ability to change and manage its affairs in a way that will help it to get out of its fundamental financial difficulties. No politician in his or her right mind would prefer to make the hard decision to raise tax. By showing that we are able to make such hard decisions, we are sending a clear signal to the wider world that we can and will get out of this difficult situation.

This problem is not just happening here - it is happening in every home and business in the country. Businesses are willing to manage their operations in a flexible manner so that people can get through this difficult phase with their jobs intact and with the economy still working. Householders have to make similarly difficult budget choices. The way we live, spend and make plans is changing. We want the people to be successful and wealthy when we emerge from this crisis. We are doing what is needed. The first and most important thing we need to do is to give confidence to other countries around the world and to ourselves. I would be the first to acknowledge that Ireland is in a difficult financial situation because of mistakes that were made over recent years. I pointed out some of those mistakes when I was on the Opposition benches. It is crucial that the Government, the Parliament and the people are able to change tack. We are resilient, flexible and willing to make hard decisions to get Ireland out of this difficult situation so that it can prosper once more.

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