Martin Mansergh (Tipperary South, Fianna Fail)

I would be happy to continue for another five minutes, if that is all right.

Comments were made about waste of resources. The Luas is one of the best public transport systems in existence. I agree there was an overrun on the spending on it, but it is a great system and costs nothing in terms of subsidies.

Inflation was also mentioned. The ECB has, rightly, put an emphasis on preventing second round inflation. I read an interesting article in Le Monde which said that second round inflation was when inflation goes above the 4% to 5% level. At a Europe-wide level, we are fairly close to that. The European-wide inflation rate is approximately 4%.

I agree there has been a large increase in the number of housing repossessions, but this increase comes from a low base. On the question of negative equity, as against that, the fall in house prices has made houses more affordable for those who want to enter the housing market. Reference was made to local council employment. The significant burden placed on planning departments up to a year ago has been considerably lightened.

There is something many people do not understand about decentralisation. The cost so far has been approximately €100 million, but that has enabled disposal of sites resulting in a contribution to the Exchequer of approximately €500 million. Not without reason, Senator MacSharry's father introduced decentralisation in the late 1980s as a saving. It is a saving today, but this is something that needs to be better understood.

Confidence is very important. I deeply regret the result of the Lisbon treaty referendum, because the result did nothing to help confidence. I am in the position of heading up the office which has probably contributed the most savings, over 10% of budget this year, mainly as a result of decentralisation but also as a result of some flood relief that is not yet ready to come on stream.

Issues were raised with regard to FÁS. The organisation provides much valuable social and community employment throughout the country. Many voluntary organisations would be in grave difficulty if FÁS did not exist. Therefore, I could not agree with the suggestion by Senator Ross that it should be abolished.

There is a sound philosophical basis for local authority levies within reason, namely, that developments impose costs outside their own. When I established a constituency office in Tipperary town, I had to pay a substantial development levy.

Overseas development assistance is measured by the UN as a percentage of GNP. Our contribution will be maintained at 0.54% in 2008. We are well ahead of most other countries in that respect.