Frances Fitzgerald (Fine Gael)

The first matter I want to raise this morning is the rail strike which has greatly inconvenienced thousands of passengers over recent days. The latest news is that it is still continuing. The scale of the effect on passengers seems to be completely out of proportion to the issues involved, although there is some fault on both sides. What is the point of social partnership if we cannot have a mechanism to resolve such a situation quickly? I note that Luas drivers, for example, have a no-strike clause in their contracts. It is time we considered essential public services. The other day we talked about the effect on consumers of the sterling differential not being reflected in prices in Ireland. The Government should get a grip on this. It is appalling that it is still continuing.

The new report by Davy stockbrokers makes for very disturbing reading. It has dramatically reassessed the economic situation and states that housing completions are expected to drop from 40,000 to 25,000. It is predicting a fall in house prices this year of 10.7% and one of 7.2% in 2009, along with an unemployment level of 7%. I raise these figures not to create a picture of doom and gloom — I do not think we should talk ourselves into a recession — but to draw attention to the fact that the economic picture has changed completely. I do not think it is good enough any more for the Government to talk about the programme for Government which is now out of touch with reality.

If we take the example of housing alone, the affordable homes sector is at crisis point. I heard an example the other day of a young couple who were offered an affordable home for €315,000 by a council although the property received a market valuation of €275,000. What is the future of the affordable homes schemes? How will the councils deal with this given that they have already paid amounts such as I quoted for the houses and apartments? A debate is necessary in order that the Government can tell the House how it plans to tackle these issues. The Minister for Finance must attend that discussion as soon as possible.

The Taoiseach's attitude to the Lisbon treaty referendum is not helping the debate. There must be co-operation and a change in attitude if the treaty is to be passed.