Ruairi Quinn (Dublin South East, Labour)

What members of the public would like to hear from Fianna Fáil is where it suggests savings in jobs and expenditure can be made in education. What teaching posts would it suppress, what grants would it reduce or abolish and what other measures would it take? It cannot pretend it does not have the basic data on which to base its recommendations, as it was long enough in government to know how the education system is staffed and funded. I await its recommendations with interest but without expectations.

In the meantime, it is essential that we close the funding gap between what we take in from taxation and what we spend on our day-to-day services. Let us get our heads around the figures, which I must repeatedly put up on the blackboard for some slow learners to understand. This year, the gap between income and expenditure will amount to €18 billion, which is almost double the entire budget for the Department of Education and Skills. Last December's budget will, it is hoped, close the gap by a further €3.8 billion and reduce our deficit to 8.6% of GDP by the end of the year. To meet the conditions of the memorandum of understanding, which the Fianna Fáil-led Government placed around the neck of this Republic, we must reduce the 8.6% GDP deficit to 3% by 2015. Unless we get a bounce in economic growth through a recovery in the euro and exports, we will face a difficult budget next year and in 2014, regardless of which parties are in government. We cannot be under any illusion about the serious position in which we find ourselves. As I have stated on many occasions, our finances must be put on a sustainable footing in order that we can re-enter the financial markets to continue to fund our public services and restore our country's economic and social well-being.

Achieving savings in my Department's budget has required very difficult decisions to be made, particularly at a time when the school-going population is increasing. We want to be as fair as possible in making the required decisions. A key part of our overall budgetary strategy is a requirement under the employment control framework to reduce the public sector payroll. Reductions in the public service pay bill and staffing numbers will continue to play a part in expenditure consolidation. Given that one third of all public sector employees work in the education sector, it is simply not possible to completely exempt staffing levels in education from the Government's need to reduce expenditure.

The budget which was agreed in December was challenging for all of us. We made difficult decisions and, as I intimated, further difficult budgets will be introduced next year and the year thereafter. However, there is also hope. Only last week, the National Treasury Management Agency successfully returned to the bond market ahead of time, albeit temporarily. This is the first sign that markets believe we will be able to stand on our own two feet by the end of the programme. We need to build on this as a Government and to continue working to get people back to work, protect those who cannot afford to pay their debts and build upon all of the best features of our education system.

Let me address the issue of rural communities. I have heard much comment in recent weeks suggesting there is an urban-rural divide in Irish politics and the budgetary measures enacted by this Government amount to an attack on rural Ireland.

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