Enda Kenny (Mayo, Fine Gael)
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Ba mhaith liom buíochas a ghlacadh leis an Taoiseach as ucht teacht anseo inniu. In the three months since we last met circumstances in the country have changed utterly. There have been thousands of job losses. Unemployment has increased by 42% to more than 300,000. Jobs are not being protected and are being outsourced to other countries. The tax shortfall has increased from €3 billion in July to more than €5 billion in September. The stock market is down by 45%. The property market has collapsed. A major pension problem is about to surface. In our health services we are now faced with an undetermined number of other misdiagnoses in cancer cases from Cork to Donegal. A report states that the Dublin Port tunnel is not safe. There is potential lead poisoning in water pipes in some areas in Galway city. The cost of living has risen by 50%.

Do these matters not concern the Taoiseach to the point where he should agree that on the first day this House meets after its summer break it should discuss the economy and the circumstances that now affect every person in the country? Does he accept the premise outlined by the Minister for Finance two weeks ago when he said that the people collectively chose this course of action? Does he agree that his Government now blames the people for the circumstances in which we find ourselves? Does he blame the people for the musings of Ministers, where one wants to increase the top rate of income tax, another wants to introduce domestic water charges and another wants to introduce third level college fees? The reasons are that the Government failed to heed the warning signs outlined by this party and others in making arrangements to deal with the situation that applies. While it is not to blame for the international financial crisis, it is to blame for the wastage of hundreds of millions of euro of taxpayers' money. Is the Taoiseach prepared to allow a proper debate over two days in the House or does he accept the premise outlined by the Minister for Finance that the people collectively chose this course of action?

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Government is acting on this matter by bringing forward the date of the budget to 14 October, which is the most important decision that has been made. It is an indication of the seriousness of the intent of Government to take whatever decisions are necessary to meet, as Deputy Kenny has said, the new economic situation we now face. While I do not intend getting involved in a debate during Leaders' Questions this morning on the record of the Government, which we can defend, it is a question of facing up to the situation with which we are confronted. That is exactly what the Government is doing. I wish to make it clear that on budget day on 14 October we will have an opportunity to put forward a balanced and coherent plan which sets out the priorities for Government in the context of the new situation we face. We believe that is the responsible, right, appropriate and proper thing to do in the context of the challenges confronting us, quite apart from the international financial situation we face.

Enda Kenny (Mayo, Fine Gael)
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It is an act of gross political cowardice on behalf of the Government to refuse to debate the circumstances that apply in the economy of the country on the first day the House meets after its summer recess.

Deputies:

Hear, hear.

Enda Kenny (Mayo, Fine Gael)
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The Taoiseach said the Government is facing up to the situation in which we find ourselves and that on budget day on 14 October it will have a balanced and coherent plan. The Government produced a balanced and coherent plan, or so he said, in July when its projections for the deficit were €3 billion and it projected a 3% reduction in payroll across every Department.

I saw the Taoiseach yesterday in Cuffesgrange but I did not get a chance to speak with him because he was busy. I was amused to hear him say that we have to buckle down and cut out waste of public money. The reason I was amused to hear the Taoiseach say that is because the Comptroller and Auditor General's report points to dysfunctional budgeting in the HSE, for the Minister for Health and Children, a situation where 200 new Garda cars were held in storage for 15 months because they could not be used, that the Irish Prison Service entered into 60 contracts worth €18 million without seeking competitive quotes and payments were made in respect of Border allowances for troops ten years after the peace process concluded. Who was the Minister for Finance who presided over all this waste?

Deputies:

Hear, hear.

Enda Kenny (Mayo, Fine Gael)
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The Taoiseach has said the Government is facing up to the situation, yet he was the Minister for Finance who presided over this gross waste of public money. He had the temerity in Cuffesgrange yesterday to say we have to stop all this wastage of public money, bring in efficiencies and face up to the situation. In the first 120 days or so of his time as Taoiseach, can he name three actions he has taken to ensure his successor, who said he had the misfortune to be in the Department of Finance at this time, will not fall into the same financial slurry pit with further reports from the Committee of Public Accounts and the Comptroller and Auditor General of gross wastage of public money? Will he name three actions he has instructed as Taoiseach, that he was not able to do as Minister for Finance, to protect taxpayers' money and ensure they get value for what they pay?

Brian Cowen (Laois-Offaly, Fianna Fail)
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To answer the Deputy's question in regard of the Comptroller and Auditor General's report, to which he referred, and what I had to say about it yesterday, I made the point that the constitutional responsibility of every Comptroller and Auditor General under any Government is to point out where he feels there has been less than effective value for money or disposal of funds. It is in the context between raising revenue of €50 billion and expending over €50 billion, the total expenditure and tax raising powers of the Government is almost €100 billion. Any €1 million or €100,000 spent unwisely or not to best effect is obviously €1 million or €100,000 too much but the context in which we are discussing this is that level of expenditure and of tax raised.

Bernard Allen (Cork North Central, Fine Gael)
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That is gross incompetence.

Brian Cowen (Laois-Offaly, Fianna Fail)
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That is just to make that point. In no way does it take from the merit or demerits of any aspect of any Comptroller and Auditor General's report under any Government and that will continue in the years ahead. Any lessons to be learned from it have to be learned. That is the simple point I was making. Deputy Kenny continually contends that the record of this Government is something that did not exist at all and that suddenly we now have the real situation.

Bernard Allen (Cork North Central, Fine Gael)
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Complacency.

Brian Cowen (Laois-Offaly, Fianna Fail)
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The fact is that all forecasts made coming into this financial year were around the same as those made by the Department of Finance. We are in an unprecedented situation, much different from that envisaged by forecasters at the tail end of last year because of what has been happening, primarily in international markets. That is a fact.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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That is rubbish.

Ruairi Quinn (Dublin South East, Labour)
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The Taoiseach is a slow learner.

Brian Hayes (Dublin South West, Fine Gael)
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What did the Taoiseach do?

Brian Cowen (Laois-Offaly, Fianna Fail)
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The downturn is taking place in every economy. What we must do and are intent on doing is to bring to the Dáil within three weeks a budget proposal that will set out clearly what the expenditure issues must be. With less revenue coming in it is clear economies must be made. What we must contend with are what our priorities will be as they relate to the capital programme and what the issues will be regarding the protection of tax breaks. That work is ongoing within Government now and has been for the past number of weeks. The issue will crystallise on that day. In the meantime, if Deputy Kenny wishes to engage in a three-hour debate on the economy, today and tomorrow, which he is entitled to request and is his prerogative, we will engage with him in such a debate.

Paul Connaughton Snr (Galway East, Fine Gael)
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The Taoiseach is great.

Brian Cowen (Laois-Offaly, Fianna Fail)
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We have no problem in engaging with Deputy Kenny in that debate but the Government has a job to do.

Brian Cowen (Laois-Offaly, Fianna Fail)
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The job of Government now is to prepare for the budget which we will bring forward on 14 October.

Eamon Gilmore (Dún Laoghaire, Labour)
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Since Deputy Cowen became Taoiseach, some 140 days ago, 45,628 people have lost their jobs in this country. That is, on average, approximately 300 a day. We are told that people are now losing their jobs so fast that the Department of Social and Family Affairs cannot keep up with applications for social welfare payments. More than 30,000 people who have lost their jobs are still waiting for their payments to be processed. What has the Taoiseach done since this House last met to find employment for those 45,000 people? Can he tell the House what new initiatives he and his Government have taken to put back to work those who have lost their jobs since he became Taoiseach? What measures have been taken to protect those who are at further risk of losing their jobs?

Brian Cowen (Laois-Offaly, Fianna Fail)
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What we are doing, obviously, is using the training agencies to provide whatever opportunities they can to provide upskilling and reskilling of those who, unfortunately, have lost their jobs.

Deputies:

FÁS.

Róisín Shortall (Dublin North West, Labour)
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It is not doing too much.

Brian Cowen (Laois-Offaly, Fianna Fail)
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FÁS is the training agency to which people go and of whose services they avail. Regarding the overall situation, if there is an international downturn it affects a small local economy such as ours. This is happening elsewhere and we are not immune from such developments. The downturn is having an impact.

It is also fair to say that there have been indications of investment from foreign direct investors during the period Deputy Gilmore mentioned. More than €1 billion has been received so far this year which is very welcome and this situation must continue. Part of our strategy is to ensure confirmation that Ireland remains open for business and that the country is aggressively seeking those opportunities from foreign direct investors.

We must also help those who are in work by ensuring that we run the finances of the State in such a way that the economy is more sustainable than would be the case if we operated on a no policy change basis. We will not have such a policy in the coming 12 months and beyond and must take account of the changed circumstances. Luckily we are working off a lower unemployment rate than was the case when we faced challenges such as this in the past. The economy is in a stronger position. I know that is no comfort for anyone who has lost his or her job, at any time, during good times or bad. The issue for us is to continue to work with the State agencies and to have an overall responsible budgetary position that will uphold confidence in the economy and ensure that those who are at work have the prospect of continuing in their jobs, with people trying to obtain more market share.

Eamon Gilmore (Dún Laoghaire, Labour)
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I asked what the Taoiseach has done, in the ten or 11 weeks since this Dáil last met, to find jobs for the 45,000 people who have lost their employment. What new initiatives has the Government taken in that period? I received a long answer that suggested the Government will carry on with FÁS and with its approach to the public finances. A case of "as you were". It is clear from the Taoiseach's reply that the answer to my question is that the Government has not taken a single new initiative, in the ten or 11 weeks since the Dáil rose, to address the problem of people losing their jobs. Some 45,000 people have lost jobs in places such as Cappoquin, Tipperary, Tullamore, Cork and all over the country. People are losing jobs and in the ten or 11 weeks since this Dáil last met the Taoiseach and Tánaiste and Minister for Enterprise, Trade and Employment have not taken a single new initiative. I have not heard the public announcement by the Government of a new initiative anywhere to help people who have lost their employment find new jobs. I asked the Taoiseach a simple, straightforward question this morning. Did I miss the announcement of something in the newspapers in the past ten or 11 weeks? Has there been a new initiative? Has a new mandate been given to the IDA or the job creation agencies? Has a new initiative been taken by the Government to find employment for the 45,000 people who have lost their jobs since the Taoiseach took office? The clear answer is that the Government has not done a single thing to find employment for people who have lost their jobs.

Brian Cowen (Laois-Offaly, Fianna Fail)
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That is not the situation. The Tánaiste and Minister for Enterprise, Trade and Employment will answer parliamentary questions today on what FÁS is doing to react to the increase in unemployment.

Bernard Allen (Cork North Central, Fine Gael)
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There will be more FÁS courses and more money wasted.

Brian Cowen (Laois-Offaly, Fianna Fail)
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If the Deputy has no confidence in what FÁS has done to help reskill workers and provide unemployed people with opportunities and pathways to employment then I am afraid he does FÁS a disservice.

Joan Burton (Dublin West, Labour)
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Apprenticeships are being closed.

Brian Cowen (Laois-Offaly, Fianna Fail)
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FÁS has had success in this area and I think it is only fair to say this.

Willie Penrose (Longford-Westmeath, Labour)
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Why was €37 million taken from the budget for apprenticeships? The Taoiseach is trying to cod us.

Brian Cowen (Laois-Offaly, Fianna Fail)
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There may be other issues relating to audit matters, but they are being dealt with and this has been welcomed by the chairman and chief executive of FÁS, in the interest of maintaining confidence in the agency. I am glad that this is the approach they are taking to the issue. If the Deputy is suggesting FÁS is not helping people in any way he is doing the agency a disservice.

Emmet Stagg (Kildare North, Labour)
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What is the Taoiseach doing?

Bernard Allen (Cork North Central, Fine Gael)
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What is the Taoiseach doing?

Brian Cowen (Laois-Offaly, Fianna Fail)
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In answer to Deputy Gilmore, the Government will continue to work with job creation agencies like Enterprise Ireland and the IDA. These agencies have had successes, although I notice Deputy Gilmore has not mentioned them and instead has mentioned only those people who, unfortunately, have lost jobs and who I acknowledge.

Bernard Allen (Cork North Central, Fine Gael)
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This is an insult to the unemployed.

Brian Cowen (Laois-Offaly, Fianna Fail)
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The picture painted by Deputy Gilmore is unbalanced. It is a serious situation, which we intend to confront, but I do not expect any input from the Opposition other than the sort of political point scoring we have heard this morning.

Bernard Allen (Cork North Central, Fine Gael)
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The only answer is to send people to FÁS.