Dáil debates

Thursday, 10 December 2009

Financial Resolution No.5: General (Resumed). Debate resumed on the following motion:

 

2:00 pm

Photo of Ciarán CuffeCiarán Cuffe (Dún Laoghaire, Green Party)

Deputy Gilmore stated earlier that this Government does not have the moral authority, imagination or wit to tackle the challenges that face Ireland. I disagree with him because I believe that moral authority comes from leadership and direction rather than criticism from the sidelines. It comes from implementing policies that have been talked about for years, rather than talking about what should be done, implementing policies that tackle climate change, reforming our banking system, and not only tackling the flooding that has affected so much of the country in the past few weeks but also tackling its causes, the flood defences and the proper planning policies that Fine Gael does not have the conviction to implement in local authorities around this land.

This Government has the moral authority and the well-grounded optimism rather than the cynicism of the Opposition. It has the imagination to create the new jobs in energy, agriculture, transport and construction that this green budget will incentivise. It has the imagination because it has new ideas in the form of environmental improvements and efficiencies in using money wisely. It has the imagination to fund education that came from the transformed programme for Government we agreed two months ago. Imagination will help us get through this but not if we put off making fundamental reforms and fail to tackle work practices that are past their sell-by date. The Government has the wit to get credit flowing again so businesses can create new jobs. It has the wit to propose directly elected mayors in our major cities who will drive the knowledge economy. It has the wit to provide grants that give warmer homes and save money. The Government has the moral authority, the imagination and the wit to help us get through this. I take issue with Deputy Gilmore's criticism of what we are doing, not only within the budget but in the programme for Government.

Recently, I asked the Minister for Finance a parliamentary question on servicing our national debt. At a time when many commentators are saying we should not have a short, sharp shock, but should move matters out over many years, it is worth reflecting for a moment on what the cost of servicing our national debt will be unless we take decisive action. This year, we will spend €3.9 billion servicing the national debt, and this will rise to almost €6 billion next year. If we do not make the kind of adjustments that are proposed in the budget before us, this will rise to €9.1 billion by 2013. In other words, it will more than double over a four-year period.

I take issue with Mr. David Begg when he says we should stretch this out for several years. The only thing that will stop us going down the route of Japan's stalled economy for ten years, or from repeating the 1980s, is taking tough steps now that will get us through to the far side of our stalled economy, that will make those new jobs happen. This will involve pain but it will be a pain that will get us through to the far side and create new jobs that will fire up our economy in the future. Those commenting on the challenges before us have to face up to this very real difficulty that lies before us today.

Throughout so many sectors of the budget, we see incentives that have a Green footprint which are helping us to get through this. I repeat the point made by the Minister, Deputy Eamon Ryan, that we are protecting education against what could have been draconian cuts. It is crucial that we invest in young people and give them the kind of teaching and assistance in their formative years that gives them possibilities and opportunities later on. The vast bulk of our teachers are doing trojan work in providing a decent future for our young people. It is right that we protect education and continue to upgrade our school programme to provide new schools and for refurbishment of existing schools so that our children, one of our most vulnerable resources, are protected, encouraged and nurtured. This is a crucial part of getting us through the challenge that is with us at present.

We have to face up to the banking crisis, the jobs crisis and the fiscal crisis, as Deputy Gilmore pointed out. The policies within this budget will get us through to the far side, although it will not be easy. There is no magical new dawn that will come in a week, a month or a couple of months. However, we need to get our finances in order and stop borrowing enormous amounts of money so that money can be better spent on policing our streets, educating our children and allowing businesses to employ more people again through the changes we are making to PRSI. The real jobs that will come through this next period will mostly come from the private sector and from the export-led economy. They will come from small and medium size businesses that are beginning, even in difficult times, to employ more people and find their way through. The kind of work our city and county enterprise boards is engaged in and the kind of training policies we have put in place through this budget are part of the ingredients that will get us through this.

As an example of the kind of initiatives that will help us, I noted recently that over the Christmas recess work will be done in Leinster House to replace gas boilers with biomass boilers. This is a good symbol of the kind of changes needed in the economy. Instead of burning Russian gas, we will use Irish wood to contribute to the heat and, hopefully, light that comes through this Chamber. It is a good example of creating jobs in Ireland, reducing carbon emissions and contributing to the kind of initiatives that are required over the next ten days in Copenhagen as world leaders gather to tackle climate change. It is grounded in reality, in employment, not in the kind of heckling and positioning that came from the Fine Gael and Labour Party benches last night when we debated carbon tax. This is transformational; it is real; it is creating jobs and it will get us through the tough times.

The budget is part of a coherent approach to tackling the huge challenges confronting Ireland at present. It is a time of enormous debate, coupled with the existential crisis we face with recent reports on child abuse. If we can make the reforms in society that can make us proud again in the social sphere and the economic sphere, we can get through this. This is the first step in creating a new Ireland that will create employment, see us through and make us proud again.

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