Eamon Gilmore (Dún Laoghaire, Labour)

The Taoiseach has just given us the general outline of the deteriorating state of the Exchequer. It is now just five weeks before the budget, which we are told will be the harshest in history. I am quite concerned about the general mood in the country as we face the budget. Many are angry about their own declining economic fortunes in addition to the declining economic fortunes of the country. We are hurtling headlong into a period of conflict, strife and considerable social division. There are three contributing factors, the first of which is the Government's determination to proceed in its own way and unilaterally impose a range of so-called solutions in respect of matters ranging from pay to the general public services. The second contributing factor is the chorus coming from hardline commentators, many of whom got things very wrong in the past and who appear to be urging the Government to maximise the pain, as if pain itself were some kind of political or economic objective. Third, there is the threat of widespread strikes, including that threatened for 24 November.

Given these circumstances, the solution to our economic difficulties will require people to pull together. There should be an agreement for national recovery, underpinned by five pillars. The first encompasses getting people back to work, keeping people in employment and providing training and education for those who have lost their jobs. Second, there should be a guarantee that people will not be put out of their homes during the recession. I invite the Taoiseach to accept the Labour Party motion on the home protection scheme this evening. The third pillar is that the principle of fairness should underpin the budget. Fourth, there should be a negotiated agreement on the reduction of the public service pay bill which would include reforms and economies rather than an imposed cut across the board. Fifth, there should be industrial peace or the avoidance of strikes. Does the Taoiseach agree that such an approach is now necessary to get us out of the difficulty we face?

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