Enda Kenny (Mayo, Fine Gael)

Austerity programmes on their own cannot work. We have a problem, which is to close the gap in the public finances. Whether there is a problem in the eurozone or anywhere else, this issue must be dealt with by us alone. The Government was given the option of pursuing either a non-aggressive or an aggressive policy to subordinated bondholders and the banks. We took an aggressive line and made a serious saving for the taxpayer. The same result was achieved in the follow-through by the Government in achieving an interest rate reduction - there was a saving of approximately €10 billion for the taxpayer. What we must do is trim our cloth according to our measure, but at the same time the Government must introduce initiatives to stimulate growth and promote job creation where opportunities can be created.

I have pointed out previously that between 1991 and 2000 our annual debt increased from €36 billion to €40 billion, but in the same period the debt to GDP ratio declined from 95% to 35%. The reason this happened was not that there was an austerity programme but that there was growth. When the problem with the public finances is sorted out and one closes the gap, the money spent on paying interest on borrowed money can be put into education, social protection, health and job creation measures. It is not a case of every person leaving the public service not being replaced, and the Minister for Health has pointed that out clearly. There will be targeted investment and recruitment, and some key vacancies will be filled. For instance, in the clinical programme, funding of €23.4 million has been made available. In the primary care area, €20 million has been put in to enable the replacement of key front-line primary care staff. In mental health, €35 million has been made available for the recruitment of an additional 414 whole-time equivalents, and in both the mental health and disability area, €5 million has been allocated for innovative practices and service modernisation. It is not a case of everyone leaving and no one being replaced. The Minister for Health has pointed out clearly that where key front-line services apply, the moratorium is lifted and recruitment takes place in those cases, but not in every case.

What we are doing is effectively managing the movement out of the public service, which happens every year to the tune of several thousand and which has been signalled for quite a long time. As I said yesterday, in recent years we had programmes and commentators repeatedly talking about the bloated extent of the public service, and when a system is put in place to reduce that overall number and cost, we get a different reaction. What is involved now is managing that effectively in the public interest. That is the reason these moneys have been made available for recruitment of key front-line staff. It is not true to say that all these people will leave and no replacements will be found. That is not the case. What is involved is proper, effective management and provision of the health service in this case for our people. When I talk about the health service, it is about patients, in so far as hospitals are concerned, good quality opportunities for people to live a healthy lifestyle in their communities, the availability of strong primary care teams and, if they must go to hospital, that the effective service is in place for them. That is what is involved.

See this speech in context