Marc MacSharry (Fianna Fail)

As the Minister of State, Deputy Mansergh, stated, it is important we maintain a certain level of capital expenditure. We must try to maintain momentum to the greatest possible extent. There are positive aspects of the Labour Party ten-point plan, which I mentioned earlier, on which the Minister could reflect. We should consider the national development plan and prioritise the projects that will contribute to and enhance our competitiveness. In this way we will ensure that when the upturn comes, as the Taoiseach and other Ministers have been saying, we are positioned in the best possible way to take maximum advantage.

As the Minister of State pointed out, we have a low taxation base, high employment — although in recent times there has admittedly been a rise in unemployment, which is likely to increase in the short term — and a low rate of debt. This is positive in the context of having the right fundamentals when the upturn comes. If we need to increase borrowing, which clearly we need to do up to approximately €5 billion, I believe we should consider borrowing from our pension reserve. It would be better to pay interest to ourselves and for the benefit of the Irish people than to a third party. That should be considered and I ask the Minister of State, Deputy Mansergh, to take that proposal to the Minister, Deputy Brian Lenihan, and his ministerial colleagues.

Lorenzo Bini Smaghi, a member of the executive board of the European Central Bank speaking last week in Dublin likened the European Union at 50 years of age to an individual going through a mid-life crisis. It is in need of a diet and an exercise regime which should result in a slimmed down revived figure. This is an excellent analogy for our public services. With that in mind, I express the personal opinion that we should have a voluntary redundancy scheme across the entire public and Civil Service. It would be a positive move and could be financed by way of advanced profits from the Central Bank.

The next few weeks will be vital. I welcome the opportunity that this debate gives to people to put before the House their suggestions as the budget is being prepared in these most unusual times. The Government has the capability and determination to lead us through these crises and build the blocks that will lead to the next Celtic tiger. I thank the Minister of State for coming to the House and I wish him and his colleagues well as they prepare the budget measures on all our behalves in the weeks ahead.