Billy Kelleher (Cork North Central, Fianna Fail)

I welcome the opportunity to speak on this budget for several reasons. We are all aware of the challenges facing the people and the country. This budget is a first instalment in an attempt to address that difficulty. We must all acknowledge that this budget which is taking money from the vulnerable, will cause pain and difficulties for those people. Equally we must acknowledge the need for an honest debate. We cannot deny that this country is in a parlous state on a number of fronts. First and foremost is the difficulty with the budget deficit and a shrinking economy that has left tax receipts much lower than anticipated for several years. Equally we have the issue of recapitalisation of our banks to try to stimulate credit flow through the economy to encourage the broader investment required to expand the economy again. Those two factors put great pressure on any government formulating a budget.

Some of the comments from the other side of the House have been disingenuous for several reasons. Most people are conscious that social welfare supports those at the lower end of the socio-economic groupings and is something this party has continually supported in recent years in good times. I am very proud of what our party has achieved in government. There appears to be air-brushing of history as if we never made any strides in supporting those who are vulnerable, carers, those with disabilities and those on State pensions. No Minister for Finance would lightly come to the House and publish a budget with a reduction in social welfare payments. However, if we do not pass the budget and bring forward a four-year plan, we put at risk everything we have achieved to date. As a country and a society we have achieved a considerable amount. It behoves all of us in highlighting the difficulties and acknowledging the problems we are facing to come up with proposals and ideas to address those difficulties as opposed to outlining in broad brush terms that the Government has somehow failed people and society.

The issue of the bank guarantee and the Government support for the banking institutions in 2008 have been continually bandied around the House. While it has been continually discussed, people will not acknowledge that the reports by Professor Honohan and Messrs. Regling and Watson have indicated clearly that a substantial bank guarantee was required in September 2008 for a number of reasons, primarily that the banks were in danger of imminent collapse. People seem to believe the bank guarantee was introduced just to support the banks as if the Government had another choice. It had no choice on the night other than coming in to guarantee depositors and senior bondholders simply because the banks would not have been able to access money the following morning in the markets and as everyone knows if a bank runs out of money it leads to a systemic collapse of the broader economy. Members of this House should be honest about that matter. I acknowledge it was a very difficult decision to make but at least any independent analysis of it should accept the reports of Professor Honohan and others who were brought in to evaluate and adjudicate independently whether it was the right decision.

See this speech in context