Jimmy Deenihan (Kerry North, Fine Gael)

I ask that the point I raise be conveyed to Ministers.

The reason Deputies are discussing a motion of no confidence in the Government is that last Friday, when the people of Ireland spoke, only 25% of them voted for Government representatives, while 75% of the electorate across the country rejected members of Government parties at municipal, county, Dáil and European elections. For this reason, the Fine Gael Party has a responsibility to table a motion of no confidence. The House must discuss the economy and the reason the electorate rejected Fianna Fáil and the Green Party at the elections.

The current economic decline is without precedent. The Great Depression at the end of the 1920s did not compare to what is currently taking place. While I am not a pessimist, I note that all economic indicators show that Ireland will experience negative growth for a further four years. The Economist Intelligence Unit, the Economic and Social Research Institute and OECD have all suggested that negative growth in Ireland will continue for some time.

While I concur with speakers opposite that the Government is not fully to blame for the current crisis, it has contributed to it by having the highest energy costs in Europe. In addition, the costs of employment in Ireland, as opposed to wages, are among the highest in the industrialised world. Ireland's loss of competitiveness is evident in many areas. One of the last remaining manufacturing industries in County Kerry, Beru Electronics in Tralee, is considering whether to relocate to Germany where the costs of employment are much lower than in Tralee. The migration of manufacturing industries will continue because we have lost our competitive edge.

Ireland is heavily dependent on American corporations. While we all welcomed Barack Obama's victory in the presidential election, it is clear the new President's tax policies will have an effect on this country. I have spoken recently to a number of individuals who are concerned about the threat posed by his proposals.

The Government is borrowing €70 million per day to keep the country afloat. For how many years must this continue? Clearly, we will not be able to continue borrowing money at this rate in Europe, especially Germany, and the problem will need to be addressed. I concur with the Taoiseach that our economic problems must be tackled to establish a platform for future development. However, the reason we are borrowing €70 million per day is the manner in which this country was managed for a long time. The Government anticipates annual taxation revenue of €34 billion this year but has reached only 37% of its target almost halfway through the year. It is possible, therefore, that tax revenue will be below €34 billion this year and we may have to borrow more to keep the country afloat.

Our experience of the economic crisis has been significantly different from that of other countries. While Government borrowing was minimal for a considerable period, individuals borrowed substantial amounts and Irish banks borrowed large sums on international markets. Much of Government revenue was, therefore, borrowed money and not the result of sustainable development. The Taoiseach's statement that the fundamentals were right is inaccurate given the large amount of revenue based on borrowing by individuals and the banks rather than productivity gains.

I accept the point made by Minister of State, Deputy Martin Mansergh, that improvements have been made. For example, the road system is superior to what it was 15 years ago. While some improvements are evident, one must also accept that broadband penetration in County Kerry, for example, is abysmal and the county is losing out as a result. During the recent period of economic prosperity, the Government did not fund a single wastewater treatment system in County Kerry.

We received some useful statistics today. Irish households and firms owe almost €400 billion, of which mortgages account for €148 billion, company borrowing accounts for a further €168 billion and credit card debt accounts for nearly €3 billion. This accumulated debt is crippling. If the Minister were to walk from the House to Grafton Street, he would see that a large number of retail outlets have closed down. Many offices and businesses have closed on Merrion Square, a trend reflected throughout the country. Deputies who canvassed during the local elections will have noted that shops in town centres are closing down daily.

It is forecast that 500,000 people may be unemployed by the end of the year. The ESRI has also forecast that as many as 300,000 people will be made unemployed in 2010 bringing the unemployment figure to as much as 800,000 in two or three years, a frightening prospect.

The reason the Government parties performed so poorly last Friday was that people are not satisfied with their performance. The bottom line is that people do not have confidence in the Government. As tough decisions must be made, each party should set out its stall.

Parties should go to the country and ask the people for their verdict. I am convinced that whenever the Government decides to go to the country, there will be a change of Government. That is inevitable. That is why the Government is hanging in there as long as it can just to stay in power. It should give the people an opportunity, as reflected on Friday last, to express their view at this stage and that is why this motion was tabled.

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