Maureen O'Sullivan (Dublin Central, Independent)

I thank my colleague for sharing his time with me and facilitating me in having this opportunity to contribute.

We are facing massive economic problems and no one should even consider trying to down play or minimise them. We must be realistic about the fact that austere measures are needed but what must be acknowledge are the difficulties and frustrations facing those who had no hand, act or part in the current disastrous financial situation and the terrible sadness that all of this could have been avoided. It is frightening to think that we will spend more on the annual repayments than on funding our health system and education.

One point that is accurate is a statement in the recovery plan that tax and expenditure measures will negatively affect the living standards of citizens in the short term, but I ask which citizens will they affect? This is where the plan and the budget are fatally flawed. It may pass some economic tests but not the political one which requires support from the people. The poorest are being asked to take cuts and what I find most appalling are the cuts to be imposed on those with disabilities, both mental and physical, and their carers. We know that there are extra costs for those living with a disability.

Social welfare cuts will have disastrous effects on many families and individuals. We are in the closing month of 2010, the European Year for Combating Poverty and Social Exclusion and yet the current crisis has already seen more people driven into poverty. There are significant elements of the plan and budget which instead of lifting people out of poverty will push them further into poverty and social exclusion. With the higher rate of tax having stayed the same, there is little evidence that those who have more will pay more.

The plan refers to maintaining investment in education and we know that one of our major assets is our educated people. I am glad that the school building programme is being sustained and I hope that Gaelscoil Bharra in Cabra will finally get its building. Yet there is a massive reduction in student grants, the grants that are needed to keep people in education, especially those from lower socio-economic groups. There are also cuts in resources and literacy programmes, yet we continue to fund private education and education quangos.

The uncaring attitude towards those on the minimum wage is matched by the arrogance in total refusal to even consider an increase in corporation tax, which suggests that we have been turning a blind eye to the way this country has been a semi-fraudulent tax haven for major international companies dodging paying their legitimate taxes in their own countries - even a small increase in the tax charged to those international companies could have been made for them to make a contribution here.

I acknowledge that the budget has attempted to start at the top with a cap on salaries but it is not enough and, more importantly, I want to know if this provision will come into force now in respect of the obscene salaries of €300,000 plus and double and treble that amount? Will the bonus payments be eliminated, will the expenses payments be at least halved and what about the payments for serving on boards made to people who already have hefty salaries and who serve on a number of boards?

Irish people would buy into a recovery plan if it was fair and equitable and if the pain and the sacrifice were shared equally and were proportionate but, unfortunately, it is not and there are many people in Ireland tonight who are not suffering unduly because of this.

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