Andrew Doyle (Wicklow, Fine Gael)

Last November when I contributed to the debate on the equivalent Financial Resolution, I concluded by saying, "There is speculation that the Minister for Finance will have to introduce a mini-budget in February. I submit that this mini-budget has already taken place and the real budget will be introduced in February". The only thing I was wrong about was the date. The object of the supplementary budget was to rein in the deficit to within 11% of GDP, as agreed with the European Commission and to restore confidence. The budget has achieved what it set out as a bookkeeping exercise. In spite of that, Moodys reduced the credit rating of all 12 Irish banks this morning saying there was an increased exposure to bad debts intensifying. An article on the back page of today's Financial Times states that "Ireland budgets again after the party" adding that this may result in its "young, well-educated flexible workforce" making a beeline for the exit. It adds that our construction-led recession has brought the economy to the point where it could contract by 8%. It comments that the Minister for Finance had very little room for manoeuvre but that he may have pulled the wrong levers in his haste to comply with the Brussels rules. The Central Bank had argued that we sharply reduce public expenditure rather than tax our way out. CNBC stated that the aim of the US Government was to stimulate the economy and one way to do that was to reduce tax. To increase tax is to stifle the economy. Caution has not been thrown to the wind. It was thrown to the wind when we had money to spare, when we had full employment and we abused and butchered the partnership model and process for electoral survival. The process was used in the past seven or eight years to ensure that everybody was kept happy and quiet in order to survive politically. It did not stand up to challenges, did not face facts and tell people the hard truths when they needed to be told. When I see members of that partnership process having their arguments on television every night instead of behind closed doors where they can get down to real business and try to put conditions on the table, it is obvious that it is a defunct model.

The Minister of State at the Department of Community, Rural and Gaeltacht Affairs, Deputy Curran, said yesterday that he regretted that he had to make some tough decisions and announced the suspension of the community support for older persons scheme. This scheme provides older people with socially monitored alarm systems which cost €300 per person. The bill for this last year was €4.3 million. On 6 April a press release was issued to the effect that "Curran announces further payment of Grants under the Scheme of Community Support for Older People" in which he is quoted as saying "I am delighted to announce funding to a further 49 organisations". The Minister for the Environment, Heritage and Local Government, Deputy Gormley, brought in new nitrates directives for local authorities to inspect farms when the Department already does these inspections yet we are trying to save money. Does the right hand know what the left hand is doing? Only 24 hours after announcing that he is opening up a scheme the Minister of State at the Department of Community, Rural and Gaeltacht Affairs closes it down.

I refer again to the Financial Times. This is not a red top or Sky news. It is a paper that people who are actively considering where they are going to invest their money read.

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