Seán Power (Kildare South, Fianna Fail)

As the Minister for Finance, Deputy Brian Lenihan, said yesterday, the budget has been constructed with six broad policy objectives, namely, to place the public finances on a stable and sustainable path, to restore our banking system to ensure that credit is available to both businesses and consumers, to regain our economic competitiveness, to protect employment, to stimulate economic confidence and to restore our international reputation. I must emphasise the importance of restoring our banking system. Some Members have criticised the Government for trying to tackle what is a very difficult situation not only in Ireland, but throughout the world. We have seen the attempts made in the USA and in Britain to deal with the crisis. If we could successfully tackle the banking system and restore it to what we were used to and provide the confidence that is very much missing, it is biggest and best protection we could provide to employment in this country. The Taoiseach and the Minister for Finance have explained that on several occasions. Members understand the lack of credit that is available to businesses throughout the country. The banking system must be our priority, namely, to restore confidence in it, to get credit flowing again and to give businesses the opportunity to survive during this difficult time and to flourish later on.

It has been necessary to take very hard decisions on both the expenditure and tax fronts, but in making these decisions fairness has been the cornerstone of our efforts. Notwithstanding the tough decisions taken, the Government has still made some provision for productive investment and this includes important provisions in the communications, energy and natural resources sectors. My ministerial colleague, Deputy Ryan, outlined to the House details of some vital investment projects in the areas of energy efficiency, renewal energy and broadband and this will play a major role in promoting sustainable development and competitiveness.

Ireland is not alone in facing this severe economic crisis. Recent events show that we are in a situation of almost unprecedented international economic and financial volatility. As a small open economy, we are particularly vulnerable to the international situation. All the experts would indicate that global trade will reduce by at least 9% this year. As a small island nation that is very dependent on exports, that has to have a serious impact on our country.

However, the firm and prompt action already taken by Government in response to the financial situation has now been complemented by equally decisive action taken in this supplementary budget. It has been necessary to take additional steps to achieve savings in the departmental budget and in the budgets of agencies under its aegis in 2002. The Department has further reduced gross current expenditure by more than €12 million since the October budget. In addition, a reduction of €15 million has been announced in capital expenditure.

With regard to the allocations for this year, the area of current expenditure will demand substantial efficiencies and these efficiencies will be delivered to ensure that we live within budget. It should be noted that the overall allocation for the Department's administrative costs is down, reflecting savings in respective consultancy, procurement and an 8% reduction in professional fees. The allocation for consultancy in the Department's administration budget is down 27% per cent on last year's spending. This reflects the cuts in consultancy expenditure.

As Deputies are aware, as part of the agencies restructuring programme approved by the Government, the central and regional fisheries boards are to be replaced by a single national fisheries authority. This move is generally in line with the 2005 Farrell Grant Sparks report on the sector. It will over time promote the conditions for greater flexibility in the use of inland fishery resources while ensuring that the regional focus remains. I compliment the people who have served on the boards and the support we have received from all involved now that the new authority is being created. The rationalisation of the boards will strengthen this valuable sector, which fulfils an important role as a guardian of our inland fisheries environment. Implementation is currently under way to ensure a smooth transition to the new structure. The restructuring is being designed to consolidate and strengthen the service, improving its efficiency and effectiveness.

I am happy to report that the 2009 budget makes provision for the continuation of the INFOMAR project, Ireland's national seabed survey. This important strategic programme provides vital baseline mapping for a range of initiatives in the offshore, chief among these are the marine renewable energy developments supported by my Department, but the project also underlines offshore exploration, fisheries, aquaculture, aggregates and safety. This project is acknowledged as the best practice worldwide and it is carried out by the Geological Survey of Ireland jointly with the Marine Institute. The first three years of work on this project have been carried out very efficiently and within budget. It is the envy of several other countries. We are aware that a number of them are trying to replicate what we doing here.

With regard to the communications sector, I am acutely aware of the importance of encouraging and facilitating more people to participate in the knowledge society and what we call e-inclusion has the potential to be positive in many ways.

Information and communication technologies, ICTs, have transformed the lives of many people. They make it easier, quicker and sometimes cheaper to access services. They also make it easier to search for information, goods and even jobs. People who use the Internet can avail of on-line shopping. They have access to more purchase choices and thus can often avail of better value. The same holds true when it incomes to communication, with a range of excellent value on-line options available. However, it is clear that people right across the country are missing out on that opportunity. The full extent of the potential benefits technology can deliver for society will only be realised when its use is more widespread. This will be tackled on a number of fronts.

The national broadband scheme will bring broadband to those parts of the country that would not be able to have it without some assistance. This will result in all parts of Ireland being connected. There is also a need for the rapid growth we are experiencing in broadband uptake to continue so that people may have the very real benefits that will follow. The e-inclusion fund has achieved some significant positive impacts. Last year, grant allocations were made to 87 organisations amounting to just under €2.25 million. The reduced 2009 allocation in the current fiscal climate facilitates continuation of this important programme with focused interventions to achieve maximum benefit from the resources available. We will have less funds to allocate, but I am confident that we should be able to make as much impact as possible.

I started off by talking about Ryanair. It is very much acknowledged as a company that provided cheap air travel. Almost inadvertently, it has, too, played a major role in encouraging people to use technology. People came to realise that they could make savings by booking on-line. This encouraged more and more people to use the Internet. By using this technology, people were provided with great opportunities and this has led to increased confidence among the public. It is important to build on this and give people right across the country the opportunity to use information communication technology on a daily basis.

In conclusion, I do not take any great satisfaction from supporting yesterday's budget. It is very much with regret that we had to take the decisions we did, but we had no option as regards those difficult choices. I hope the sacrifices we are asking the Irish people to make will be very much of a temporary nature and that by all of us working together and playing our part, we can make this country great again.

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