I welcome the opportunity to speak on the Finance Bill presented by the Minister for Finance, Deputy Brian Lenihan. There has been a major focus in recent times on our financial situation, and rightly so, and many people are uncertain of our ability to pull through the current economic crisis. While I term it the "current" crisis', it has been with us now for some time, which has led some people to scepticism. Some people may say that is a natural process for the human psyche. The process of economic stabilisation has been slow but steady and it will play out over the course of this year and next year.

There is no quick fix to our problems. We are in a global economic downturn, with added banking problems, and must work our way out of it. That is exactly what we have been doing under the leadership of our Taoiseach, Deputy Brian Cowen. We found ourselves in a very unfortunate position, but one which has been improving and will continue to do so. We have faced tough budgets over the past two years, budgets that were neither popular nor painless. Many people have been affected by the decisions taken in recent budgets, but our job is to put this country back on its feet again and not to get caught up in popularity contests. I believe history will prove this Government's courage in time.

We have taken some inspirational steps in recent months and many people around the world have been watching the outcome of these steps. Some openly admired the initiative shown by our Government and others have imitated the steps we have taken. The bank guarantee scheme, the nationalisation of Anglo Irish Bank, the introduction of NAMA and recent budgets have amounted to positive action. This is something of which we should be proud. We have come a long way, but we have further to go and of that there is no doubt. I am confident we will return to being as strong as ever as a nation if everybody gets behind the wheel. We must also take heart from the IMF's support of NAMA, which was a bold and original initiative. It took the crisis by the scruff of the neck and promoted a valid solution. This is what real politics is about, not the populist shouting across the Chamber we unfortunately see so much of. There was more of that tonight.

I spoke in the House recently about our resilience as a nation and the concept of the Irish "meitheal". Our mettle as a nation has been tested in recent times and it is against these tests that we show our true ability. It is only when we work together that we can show optimal ability as a nation. It is with this in mind that we must move forward. We have been let down by our banking system and been wronged by some of those running the system. However, I look forward to due justice being served upon those deserving of it. Some Members believe an example should be made of some of these people immediately to show that this type of behaviour is unacceptable. There is no doubt that some people would feel better about our future if we did that. However, it is more important that a thorough investigation is held in order to hold up all those responsible as an example of wrongdoing. None of those involved deserves anything but the full rigour of the law. That is the approach being undertaken and I look forward to its conclusion.

There have always been populist politics and these have been exacerbated throughout this period of economic instability by many in this House. There has been much talk of bailing out banks and developers. There is only one group of people the Government is interested in bailing out. These ordinary individuals in the street, going about their daily business, are the people we intend bailing out, first, by guaranteeing that their savings are safe and, second, by introducing the policies of this Government to reorganise our financial system to ensure that the people have access to credit to meet their needs.

There has been much furore over pay cuts for public sector workers of late. I acknowledge the huge contribution the public sector has made to dealing with our financial predicament in the past 18 months. It was never about pitching public sector workers against private sector workers. However, the fact is that thousands of private sectors workers have lost their jobs, many of whom are dependent upon social welfare for the first time in their lives, which is a difficult situation in which to find oneself. We all know many people who have found themselves in this situation in recent times and we empathise with them. The more fortunate members of the private sector are striving to hold onto their jobs and they have taken substantial pay cuts, but many are unsure about their futures or how long their jobs will last.

It is in these circumstances that we must realise it is not a competition between the public and private sectors. Frankly, we did not have the money to continue paying the public sector wage bill. We simply could not afford it. Changes were imminent. Nobody wanted to see jobs being lost and, therefore, everybody was asked to contribute. It was not a pleasant measure to enforce but it was necessary. Further adjustments may have to be made in this area and I am hopeful discussions can be resumed with the social partners in order to obtain satisfactory measures for all concerned. Job security is of the utmost importance and must be top of our agenda for any future discussions.

The Finance Bill is giving effect to some of the measures announced in the budget last December. It will give effect to the reduction in VAT from 21.5% to 21%, which will go some way towards helping businesses along the Border, particularly in Donegal, which I represent. There has been much media coverage of those travelling across the Border for shopping in recent months. The increase in the UK VAT rate will also assist those in business in such areas. Furthermore, the decrease in the excise duty on alcohol is a welcome initiative. Again, coming from Donegal, I am well aware of the difficulties arising from cross-Border trading. The decrease in the excise duty on alcohol and the VAT rate are considered to be wise incentives.

The introduction of the domicile levy of €200,000 on all Irish-domiciled individuals who are Irish citizens to ensure that wealthy Irish-domiciled individuals make a contribution to the State is vital. There has been much resentment levelled at these individuals in the recent past and this is a welcome move.

The challenge of attracting investment and jobs in an increasingly competitive environment is also being addressed in the Bill. Advantageous taxation measures are being introduced to ensure that Ireland can actively compete against other world leaders, and several tax reliefs are coming into being. Last week, Jean Claude Trichet, president of the ECB, said that our initiatives are very impressive and similar sentiments have been expressed in various commentaries across the world.

In regard to Ireland's financial position and the measures being taken by Government, we will continue to take issues on board and deal with them in such a way that Ireland will be back as a competitive country in which to do business. With companies such as those highlighted, we should be encouraged as a nation to show our mettle to the rest of the world. We all acknowledge people are experiencing tough times out there. We have come a long way and we must take those final steps together to ensure Ireland is back out there as a competitive country. All positive input is welcome.

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