Marc MacSharry (Fianna Fail)

——highlight various aspects of the report and the reasons for genuine grounds for optimism for the future. There is no question we are in a changed economic situation. In recent years, the country has thrived on the back of real sacrifice and tough decisions taken in the 1980s with the support of this Government and, in fairness, the Tallaght strategy too. Credit for these advances can be taken on all sides of the House.

Challenges have emerged largely because of a volatile international banking situation. Banks are no longer lending to one another and it is difficult for a bank to secure 90-day finance from another bank at present, which is most unusual. That lack of confidence had penetrated to other aspects of the economy. This situation presents real dangers for all of us. Mr. Jean-Claude Trichet, President of the European Central Bank, has said that the level of uncertainty resulting from this global turmoil remains unusually high. I ask the Minister of State, Deputy Mansergh, to speak to the Minister for Finance, Deputy Brian Lenihan, to see if it is possible, along with other European finance ministers, to convince the European Central Bank to consider the wider economic picture, not just inflation.

The euro is overvalued against the dollar and sterling currencies at present. It is 100% more expensive for a tourist from the USA to come to Ireland than it was some years ago. For someone going from Derry to Letterkenny it is 20% more expensive. A friend of mine works in a cross-Border agency, is paid in sterling and his salary is worth 20% less than before. These are real concerns. While I recognise it is not the direct function of the Government, I would like to see the Minister for Finance raise at the Council of Ministers the issue of the strength of the euro. Perhaps the European Central Bank could then begin to focus on improving the economy of Europe rather than focus only on inflation. I recognise this is a difficult balance to strike but it should be addressed nevertheless.

The Opposition has raised several issues but I have not heard many suggestions. Much has been said on the issues with which the Opposition is dissatisfied, but let us have the tangible solutions it would provide. The new Government sets out, with the Taoiseach, Deputy Brian Cowen, to reform the public service. I welcome that the Taoiseach will establish a task force in the coming days for the implementation of the recommendations of the recent OECD report, which is welcome. The same level of discipline displayed by the Government in 1987 will have to be adopted by Ministers now in managing current expenditure. Modest borrowing should drive the delivery of the capital programme under the national development plan. This is a prudent approach and fits the predictions of the ESRI report, which is a revered organisation with a proven track record of accurate predictions. It predicted the Celtic tiger at a time when few could see it happening. Professor John Fitzgerald and his colleagues have done exceptional work and have given grounds for confidence in the economy in the future.

There is a sentence in the 1987 budget speech pointing out that optimism does matter. The Opposition should embrace these three words. We should think positively and look to our strengths while acknowledging that we have weaknesses and challenges. We must focus on limiting our flaithiúlacht and expectation.

Given the ongoing national social partnership talks, we must be realistic in our expectations for the future. I am confident that the Government with renewed vigour and enthusiasm under the new Taoiseach and his new team can play an important role in ensuring we create a scenario to allow us to reap the benefits in the future by being prudent and disciplined at this time. We must be cautious in our approach in staying within the budget on current expenditure and through modest borrowing maintaining momentum on the national development plan.

I commend the amendment to the House. We should frequently use Private Members' time and other time to debate the economy because there is a very volatile international situation of which we must be cognisant. I remember many days in recent years when Members of the Opposition were all to ready to say to us that the reason things were going so well was because of a favourable international environment. Equally they must now be cognisant of the international environment when criticising any performance of Government or any changes in our economy.