Billy Kelleher (Cork North Central, Fianna Fail)

I welcome the opportunity to speak on the Financial Measures in the Public Interest (No. 2) Bill 2009. I do not have much time and would like to refer to some of the issues raised by Deputy Burton in the context of her contribution.

Having listened to the debate in the context of preparations for budget 2010 and the discussions that went on outside this Chamber in the context of divisions between the private and public sectors and the accusation that this was orchestrated, as a Member of this House and previously a Member of the Seanad, I have worked with civil servants and the public sector in general and found them to be courteous, professional and of the highest integrity. Insinuations that Fianna Fáil was trying to diminish the role of the public sector or Civil Service in terms of the carrying out of their duties is dishonest and unfair.

The Government has since 1997 supported social partnership and the trade union movement in their discussions with the employers and in the context of Government. Unfortunately, this time around we were unable to come to a conclusion to address what is a serious situation, one that could not be allowed to continue in terms of the deficit that was appearing in the public finances. We, in this House, must be honest and acknowledge that the public finances going forward without adjustment were not sustainable. We have taken difficult decisions in previous budgets with the introduction of the pension levy and in respect of public expenditure cuts. This must also be acknowledged regarding the preparations for budget 2010. We have already had substantial financial adjustments to the public expenditure figures.

It is disingenuous of people to say that we could have done this without pain or by means which would have ensured people did not notice a reduction in their salaries or social welfare payments. In my humble opinion, that is disingenuous and dishonest. The Government took a difficult decision, one that does not rest lightly on the shoulders of the Minister for Finance, Government or any Member of Fianna Fáil, the Green Party or Independents who are supporting this budget. We are fully aware of the contribution of the public sector and Civil Service in the provision of services to the people of Ireland. We would be doing ourselves a disservice if we did not point out that we could not continue to sustain the level of payments in the context of social welfare and public sector pay. The Minister has brought forward this particular Bill which in time will ensure our finances are sustainable not alone to protect services but to protect our not being in a position to pay people, which is a reality.

The vast majority of public sector workers earn less than €50,000 per annum. It is not possible to make savings or adjustments, as suggested by some people opposite, by imposing all the reductions at the higher level. That simply would not have achieved the savings we required in the context of €1 billion from the public sector pay purse. We have a progressive tax system in this country. Whether Members opposite accept it or not, those who earn most pay most. They are the facts and that is the reality. In terms of the public sector pension levy, those who earn more pay most as is clearly evident in this Bill. We are asking people in all sectors of the public sector to carry their fair share. These decisions are never easy for a Government, in particular a Government that has been supportive of and invested hugely in the public sector, not alone in terms of industrial relations and remuneration but in the provision of public services across the spectrum, including in education, health, social welfare and infrastructure. We have invested huge sums of money in this area and all of this money is handled by the Civil Service and the public sector or spent on the public through the public sector. For people to waltz into this House and cast the aspersion that this Government has no feeling or understanding of the difficulties facing people is unfair. I am sure all Members know somebody, a relative, friend, neighbour or family member, who works in the public sector or Civil Service. The Government is acutely aware of the difficulties they are facing, in particular those in receipt of low pay. Given their demographics and age profile these are often people who have mortgages and family commitments. Those people who say there is an easier way of doing this are not doing this debate or those listening outside a service. They are being disingenuous and, at the very least, dishonest.

The usual allegations with regard to the policies pursued by previous Governments since 1997 have been thrown across the floor. Everybody acknowledges that huge strides have been made in the provision of public services. There has been investment across all areas, including in infrastructure in terms of the development of motorways and railways and in educational and hospital expansion. Also, the number of people employed in the provision of those services has increased dramatically in recent years. I remind Deputies opposite that Fianna Fáil in coalition with others during the past 12 years has been responsible for expanding the public services beyond our wildest imagination. We are in a changed dynamic. Those people who suggest that it was the internal decisions of Government since 1997 that brought about the difficulties in our public finances are not living in the real world. If that is the case Fianna Fáil could be accused of bringing down Lehman Bros and of undermining the economies of the European Union and across the world. It is just not credible to suggest that all of this is the result of internal difficulties in Ireland. We lost competitiveness during the boom. I accept there was an over-reliance on the bubble that developed in property market. Equally, however, many people were employed for many years in the property and construction area. I never heard any Members opposite suggesting we should have done something differently to dampen the property market, which was a huge generator of employment and opportunities for many people. Members opposite are crying crocodile tears, which beggars belief to a certain extent.

It is important that we are honest and understand that many families are experiencing difficulties in terms of redundancy and job losses. For a large number of people this budget gives only a glimmer of hope. They hope it will re-balance the public finances, stimulate growth and provide opportunities in the context of job creation. More than 400,000 people have lost jobs and are currently unemployed.

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