Enda Kenny (Mayo, Fine Gael)

We all agree ECB interest rate reductions should be passed on by the banks. We made that crystal clear to the banks when they attended a meeting in November on this issue. It must be borne in mind the Government has just a 15% stake in Bank of Ireland. Ulster Bank made its position clear in so far as the number of mortgages it has here are concerned. Nonetheless, there was a full and a frank discussion about passing on the interest rate reduction. I intend to call the banks back in again in mid-January. This time there will be a specific list of agenda items to which they will respond in writing before the meeting to ensure a more comprehensive discussion later.

The Economic Management Council is not the Cabinet and was never intended to be. It is, however, a Cabinet sub-committee that is able to deal with a range of issues which can then be presented to the Cabinet for its perusal and decision, if required. If one has to take €3.8 billion out of the economy in 2012 - €2.2 billion in current spending and €1.6 billion in taxation measures - the larger Departments of Health and Social Protection will be the two front-runners in cuts. How many times has Deputy Martin been told of a scandalous waste of money in a section or scheme in a Department which should be abolished or made more effective?

A revolution is happening in the social protection area. For years immemorial, one was paid one's allowance and told to go away. All social protection moneys come from the taxpayer or, as is the case now, borrowed to keep services running. To ensure best value, people's work experience and competencies, along with the job they are seeking, are discussed with them. Jobseekers are encouraged to state what job they want and what contribution they can make instead of simply being given their payment.

Were we not able to deal with the major spending Departments, one would not be able to achieve the savings target I referred to earlier. If one abolished all the smaller Departments, such as Defence, one would not even make up the €3.8 billion required. Savings of up to €600 million in the Department of Social Protection, along with serious reductions in the expenditure by the Department of Health will bring about leaner, more efficient and effective Departments and benefit those availing of their services, be they health service users or jobseekers.

The unemployment rate in this country is entirely unsatisfactory at 14.4% and that is the big challenge for Government in the time ahead. That is where the focus of Government will be with labour activation measures and the Government jobs agenda being announced in January.

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