Michael Kennedy (Dublin North, Fianna Fail)

Every reasonable person recognises - Fine Gael and the Labour Party have lately come o the same conclusion - that we must make the saving of €4 billion. On stating that it might be over two years, we all know it must happen in 2010 otherwise we get further into the quagmire, our borrowings will increase and the rate of interest on those borrowings will increase because those who lend us the money will not be as supportive as they have been in the past.

In this debate I have listened to Members of the Opposition consistently ask us to listen and give them the opportunity to put forward their ideas. I heard the Taoiseach and the Minister for Finance state that they would gladly welcome ideas. Tonight we did not get one idea other than the bland assertion that the Government created the problem. Whoever we lay the blame on, we are where we are. It does not resolve the difficulties for those who are unemployed, it does not reduce our balance of payments and it does not get us one cent towards the €500 million that we borrow every week.

In terms of solutions, I want to state in this House what I stated in the public domain about child benefit, which costs €2.5 billion. High income earners who do not have any child care costs should pay their contribution in the national interest, yet Fine Gael says that it will not touch, means test or even tax child benefit. On the other hand, I the Labour Party says it wants to tax the rich, yet it wants to give the rich child benefit at substantial cost.

See this speech in context