Joe Behan (Wicklow, Independent)

I am grateful for the opportunity to speak on this important matter. I regret it was only after Deputy Finian McGrath's protestations - he said Independent and non-aligned voices were not being given a hearing - that consent to speak was granted. I am shocked, amazed and disgusted that just 12 months after significant sacrifices were demanded of people on the lowest incomes, we are back in this House to discuss an economic and fiscal situation that is twice as bad as it was then. It is no exaggeration to suggest that the mean and savage reductions in social welfare payments that took place last year have been a waste of time and effort. The most disadvantaged women, children and men in this country were targeted then and are being targeted again this year. It is unforgivable that those with least to give are to be asked to give yet again. It is all the more unfair and unjust when one considers that the most wealthy people in this country have been excused from making anything other than a token contribution. It is incredible that the lesson of last year's swingeing cuts has not been learned. Money was taken from taken from those who spend all their incomes on day-to-day necessities, as opposed to those who can afford to save it for a rainy day. It appears we are going to witness a replay of that madness this year.

I am also shocked by the manner in which the latest ESRI quarterly economic commentary has been smothered at birth by the Government and the main Opposition parties. The views of the ESRI, which is a respected institution, are usually taken seriously by the establishment in this country. At this most challenging time in our nation's economic history, however, the ESRI's stark warning is being ignored. I would like to refer to a paragraph of the report that should cause alarm bells to ring all over the land:

Before discussing further the implications of the austerity programme, it is important to note that we have grave doubts over the wisdom of the parameters of an austerity programme where such a high levels of savings will be sought in such a tight time frame. A restoration of sustainability in the public finances is needed, of that there is no doubt. But to us, if one accepts the ESRI's Low Growth scenario as being a reasonable depiction of how the Irish economy might grow in the coming years, a longer time frame for adjustment would be preferable. The problem arises because an austerity package of €15 billion within four years could damage the potential of the economy to grow its way out of recession. The scale and speed of adjustment is such that it will be exceptionally challenging to retain societal support. From our perspective, an agreement with the European Commission to reduce the deficit to 3 per cent by 2016 would have been preferable and would have been seen as being credible by international lenders, once EU agreement had been achieved.

It is clear to me that the four-year timescale for reducing our debt burden is too short. It is incredible that Fianna Fáil, the Green Party, the Labour Party and Fine Gael have all accepted the target and bound themselves to it. The ESRI and the community and voluntary sector agree that it is wrong. The Irish Congress of Trade Unions has said it will not work. The Government's plan, which is being compiled with the assistance of the main Opposition parties, is madness. It is not sustainable. It will not convince the international lending community. What will we do in January if the interest rate we are being charged remains at record high levels despite the front-loading of pain? We need to re-evaluate this dangerous situation as a matter of urgency. At a minimum, we should agree a longer period of adjustment. I appeal to the Government with all sincerity to think again before it is too late.

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