Brendan Howlin (Wexford, Labour) | Oireachtas source

I entirely understand the sentiment expressed by Deputy Broughan and I agree with much of it. I do not wish to be in the current position. I do not wish to reduce expenditure in any area of the public service. I do not want to ask public servants to make a contribution.

I say that because people call for an end to austerity. I would love to end austerity today. The problem is that we are borrowing €1 billion a month for public services. In truth, that is not sustainable in the future. A target has been agreed to get our deficit below 3% of GDP by 2015. In order to do that there is approximately €5 billion in further adjustments remaining. We will divide that between taxation and expenditure reductions. There is €3 billion in the expenditure reduction side. That is in the budgetary arithmetic, in the medium-term fiscal plan and in the agreement with the troika. If we have to save €3 billion, approximately one third – 35% - of expenditure relates to pay. We must focus on that or else pile on the cuts in other areas. That was the choice we made last year. One must decide whether one piles on more on health, education and social welfare. Instead of that we gave those areas relief. The Government added back €150 million last year to health and social welfare in particular to lessen the awful decisions that had to be made in those areas. It is reasonable in a balanced way, if one is going to ask social welfare recipients, those dependent on the health service or who want an education to carry some of the burden, that public servants who earn above €65,000 would make a contribution, in the same way as Members of this House, myself and others, as well as people who are consultants, doctors, judges or senior gardaí – those who are significantly well paid. That is reasonable. That is the strategy.

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