Mattie McGrath (Tipperary South, Fianna Fail)

Irrespective of who may have caused the problem, our finances are in deep disorder. We can blame the banks or whomever else but we are in a crisis. The Government expects to have to borrow €26 billion this year. One third of Government spending has gone on social welfare this year. As Opposition Deputies will privately admit, this is an unsustainable position and we must face up to tough decisions now. Everyone, including welfare recipients, must share the burden. It does not come easy for me to say this, especially as I am the parent of a large family.

Unfortunately, we must do more with much less. The main measures in the massive social welfare budget include a reduction in rates of between 3.5% and 4.2%, which equates to a reduction of €8.30 on the basic rate, and a reduction in child benefit of €16 per child per month, which will affect me and many other Deputies in the House.

While rates have been reduced, it is important to note that the euro is going further. Deputies will talk about this later when we are next door. The real value of the increases provided by the Government last year is still in place.

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