Brian Cowen (Laois-Offaly, Fianna Fail)

How long does the Deputy think it is sustainable to be spending €50 billion with an income of €32 billion? How long does he think one can maintain that and expect to be funded at a time when markets are so volatile? If we do not make these changes now, what is the level of adjustment that will have to be made eventually to find a sustainable position? Those are the real questions and choices that must be debated publicly, in this House and outside.

The Deputy suggests there is an option to continue providing services greatly in excess of what is being provided by the taxpayer in a way that is sustainable. That is the ultimate contradiction. It is not possible to do that. It is not possible even though, thankfully, as a result of policies we pursued during the good times, we were able to reduce our debt and provide ourselves with some head room to take on greater indebtedness as we make this adjustment. We see other countries that do not have that head room being obliged to make even more serious decisions, which are providing for real cutbacks in services across the board. In fact, if they do not make those decisions, others will make them for them because they will not be in a position to fund their states. That is how serious the situation is. The idea that there is some type of holiday whereby we can pass it on for another few years and to suggest that as a way forward is not the real world. We need to recognise the seriousness of our situation and discuss what the options are within that realistic framework, rather than suggest there is an alternative unrealistic framework.

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