Derek Nolan (Galway West, Labour)

This debate takes place one week after the budget. Over the past seven days I have reflected on what is happening in the economy and the country. When I first got involved in politics in NUI Galway ten years ago, I did not expect to be implementing an austerity programme, reducing people's living standards and changing the way the country operates by reducing expenditure. It is difficult to be a Deputy at a time of scarce resources and unpalatable decisions. We do not blindly follow without thinking through the repercussions of our decisions. I am convinced that being in coalition with the Fine Gael Party is worthwhile but it is not easy to explain that social welfare could have been cut by a further €190 million if we were not in Government when we are cutting ourselves. It is difficult to convince people when the cuts are having an adverse impact on them.

We all compromised on our manifestos after the election. Fine Gael got agreement that taxes would not increase. We kept our pledge that there would be no cuts in social welfare. If the Labour Party was not in Government, both the Fine Gael and Fianna Fáil parties would have cut basic social welfare rates. These are measures the coalition negotiated and changed but it is something I feel proud of when I go to my constituency to justify my presence in Government.

Whatever difficulties I face as a Deputy, the people I represent face even greater hardships. Unemployment is ravaging society. People on reduced incomes are trying to save face and rearrange their lifestyles. They are trying to continue their children's banjo lessons, as one of my constituents explained, or keep their cars on the road. The uncertainty is the most difficult aspect of our current circumstances, however. The Government has worked out a plan based on the deal the previous Government entered into with the EU, the IMF and the ECB but the uncertainty caused by Europe and the global economy is getting to people. If they thought there was a clear goal that could be reached in three or four years time, they would be less fearful but there is constant change in the global economy and the European Union. We need to address these issues at European level in order to provide certainty.

I will not deny that rural Ireland is experiencing difficulties but the focus on rural Ireland resembles the previous Government's attempt to pitch public and private sector workers against each other. Fianna Fáil Deputies are now trying to pitch rural Ireland against urban Ireland by claiming that rural areas are being hit harder than protected urban areas. That is a false and unfair argument.

The motion condemns the Government for budget measures that discriminate against those who can least afford them. This accusation comes from the party that cut the minimum wage and introduced the universal social charge for the lowest earners. The motion "rejects the move by the Government to reduce and ultimately close small rural schools", even though nobody is planning to cut small schools. We are trying to re-energise small schools by introducing clustering and getting value for money. It opposes the cuts in community employment schemes but there are no cuts to viable community employment schemes. Finally, it strongly disagrees with charges for septic tanks although Fianna Fáil ignored the issue while in Government. After running the economy disastrously and delivering the country into an EU-IMF programme, Fianna Fáil Members are taking a superior attitude and pretending none of this would have happened if they were in power. It is hard to sell the message that we are cutting €300 million less than Fianna Fáil would if it was in Government but I know in my soul that being in Government to curb these excesses is the right thing to do.

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