Bernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I am glad to have an opportunity to speak on this particularly important legislation, which gives legal effect to the budget. It is necessary to retrace one's steps for a few moments to consider recent history before one comes to conclusions as to what is the best medicine at present. A famous event in the history of this country once was described as the birth of a terrible beauty and in October 2010, another terrible beauty was born. It was the realisation of the magnitude of the debt that had fallen on the shoulders and backs of the people of this country. It was an appallingly difficult situation and was appalling for the outgoing Government at that time. As Members are aware, it was not entirely blameless but nor do I blame it entirely because the people voted for a succession of Fianna Fáil Governments and that is what happened. Moreover, regardless of whether it was right or wrong, the people are always right and one must accept their decision. However, one must study the consequences and what we now face to realise fully the difficulties under which the Irish people must bear up. Moreover, in this jurisdiction we were lucky that the Opposition parties were prepared to form a Government, because that did not happen in every other country.

It was the most difficult challenge ever handed to an incoming Government. People can minimise it as much as they like and they can say they spoke to the troika and they know there are options. Unfortunately, the options were stark and, to be the fair to the outgoing Government parties, they recognised that. Perhaps they could have done a better deal but they did not. There might not have been time but if there had been a more careful study of what happened over the previous ten years, there would not have been a need to do anything of that nature. For whatever reason, we are in the position we are in now and we cannot wish it away.

I acknowledge politics is the art of the possible and a politician must sell his message, whatever it is, but there needs to be a recognition among those who purport to be the alternative in the future that they what they propose is realistic and attainable and will not have disastrous consequences for the people who follow them. That is the equivalent of misleading the electorate. All I have heard for the past six months is negativity, poverty, despair and sale of a common product - misery. It is appalling that mature politicians should use people's difficulties, concerns, cares and worries when they are in a vulnerable position to advance their cause regardless of the cost and the consequences for the people who listen to them.

We need hope in this country. The people have a right to expect honesty from their politicians and to be told the situation. Politicians should say honestly that if they follow this pattern, we will achieve a particular goal and success but it will not be easy because it could not be. I do not blame the Opposition parties for taking political advantage but there is a point when the competition between them has to be examined carefully to find out where they are heading and where the country could be heading in the future because this competition is about who can promise the most in the shortest timeframe while pretending there will be no cost and pain. I find it extraordinarily difficult to understand and it is appalling. I congratulate them because they are all opposed to cutbacks. With the notable exception of Deputy Michael McGrath, who acknowledged there is a situation that must be dealt with, the remaining Opposition Members are competing with each other because there is no doubt in their minds that the way forward is to promise as much as possible and pretend there is something in a pot that does not exist, which is extraordinary. They are all opposed to taxation and cutbacks and the only thing they have not promised at this stage is fine weather. This is only two years since the last disastrous appraisal of the country. I cannot understand how, in their lighter moments, they do not have a little aberration and say to themselves or somebody else that this is a little brazen and we should not go down this route so early.

One of the themes that is emerging in our public discourse is the need to more money in people's pockets. The Leas-Cheann Comhairle will recall with a great deal of fondness that the theme of the 1977 election campaign was to put more money in people's pockets because the country needed a boost. The poor unfortunate people believed what they were told and motor tax, rates and health charges were abolished. The people thought this was great because this put more money in their pocket. That election was bought. In similar economic circumstances to those we are in now with the country emerging from recession and two oil crises and just breaking through the surface, all of a sudden a massive avalanche of promises were made. Within two years, the Taoiseach of the day had to resign because the bubble had burst and the debt that had piled up was multiples of that when he took office. Fianna Fáil members looked at each other and they even blamed each other but then they shuffled their feet uneasily for the next 18 months before the Opposition parties had to come along to clean up the mess.

In 1987, following another period of difficulty the same Opposition parties had to deal with, a new slogan emerged: "There is a better way." Fianna Fáil did not say too much about what it was. The party then put up posters everywhere saying: "Health cuts hurt the old, the sick and the handicapped." The people presumed the alternative government was opposed to all these cutbacks. Little did they know what was coming but when it did, it came with bells on and, unfortunately, the people were codded once again. However, the best slogan of all emerged in 1997. At the time, 1,000 jobs a week were being created and the balance of payments, the budget deficit and every other economic indicator was in perfect order but the poor people were led away again into the valley of darkness and a newspaper headline on the morning of that year's election proclaimed: "It's Payback Time." Little did we know then the full extent of that payback, who would pay and how long they would be paying it back. It was a sad situation. I do not say this a criticism of what was done at the time but this should never have been visited on the people again as long they remembered what had happened previously.

However, the strange thing is it happened again. Many economists and experts with their eyes wide open nodded in approval and encouraged what was happening and said it was great but after every feast, there comes a famine. Little did we know the full extent of the famine that was bearing down on us at that stage. I would love reality to dawn again. For instance, the Opposition Members say more money should be spent on X, Y and Z and because we own the banks, we should be able to do this. They forget that we are also responsible for the banks, their deposits and loans and the basis on which money was, and is, lent. There is a tendency on the part of some Opposition Members to come to the conclusion that the people have short memories. I believe, sadly, they could be right about that but the people's memory is something they will have to concentrate on and I will not lecture them on that.

While Deputy Kelleher is not present, I must hand it to him. He deserved an Oscar last Thursday morning when he inquired of the Minister taking the Order of Business where the social dividend was from the promissory note deal. What a profound statement. I could not believe that, after 15 years in government and two years in opposition, he had the gall to suggest that everything had been resolved and the problem inherited by the incoming Government has suddenly, mysteriously and miraculously been washed away. It does not happen that way.

This would have serious consequences for the country. It is at least recognised by other European countries and those who lend us money, including those who must lend us €12 billion this year for current expenditure and those from whom we must borrow next year, that a responsible Government is in control. It is not easy for those on the Labour Party and Fine Gael benches to do what we must do and accept the responsibilities we must accept on behalf of the population of this country. If we do not do the awful job we have been given to do, it will be done for us with greater and harsher consequences. The sad part is that the only thing we can expect from the Opposition is criticism and derision, as has always been the case.

Opposition Deputies tell us that the debt that will be placed on the shoulders of our children and grandchildren. I am amazed to hear Deputies take such a simplistic approach. If they had any knowledge of history, they would know the magnitude of debt diminishes with the passage of time. This is what has been effectively and adroitly achieved in the past couple of weeks. Unfortunately, it is the current generation that is paying the price, namely, those who acted as guarantors for their sons' and daughters' mortgages, having paid their mortgages during the 1970s and 1980s when interest rates were high and finally succeeded in clearing their debts. To give their children a chance to have a roof over their heads, they decided to act as guarantors for mortgages, only to find that the homes for which they and their sons and daughters had paid were in negative equity.

Earlier, the House debated the issue of restructuring mortgage arrears. I remember raising this issue in 2008 when I sat on the Opposition benches. The issue should have been addressed at that time when the problem was small and arrears were manageable. We can play around with the figures as much as we like. While I do not expect the Leas-Cheann Comhairle to reply, he must grin to himself when he drives around the countryside. I presume he does not laugh about the issue but what I like most is when people state they want a write-down. I have been around for a long time. I have been in and out of banks looking for mortgages and loans and experienced great difficulty repaying them because of high interest rates. However, I have not yet been given a write-down. People are entitled to be given relief in terms of interest reductions, extensions to the duration of the loan or the removal of penalties and such measures have been traditionally acceptable in all financial circles. If a problem is raised in a timely manner, even the most difficult bank or lending institution will be willing to engage, provided a realistic proposition is made. However, we now have people asking their lending institution to write down loans of €600,000 they took out to buy a house on the basis that they no longer believe they are able to repay it. We would all like to have our loans written down but it is wrong to presume that because we own some of the lending institutions, the taxpayer will come up with the readies to fund write-downs. I cannot understand how this approach is supposed to work. There must be some convoluted logic at work that I simply cannot grasp. It is appalling to suggest to people who are under pressure with borrowings and mortgages that this approach would work. People in this position have enough problems, without Deputies misleading them by pretend there is a silver bullet or magic solution which will wash everything away and leave them with nothing to worry about. It is sad that some are prepared to play with people's worries and cares at a vulnerable time.

I hope we do not get into auction politics even before the auction starts.

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