Alan Kelly (Labour)

It is preposterous that we do not know this before we vote. Are we postponing the inevitable? We are guaranteeing deposits and I know that interbank lending is the other side of this issue. What will happen if a bank goes under?

What will happen across Europe and the world when different governments implement their own methods of bailing out institutions? What will happen, were the pitch to be levelled and a bank to fail? What will be the result? What will be the consequences for each taxpayer and member of the public, were one of the institutions that is being bailed out to go under? These issues must be discussed in the coming hours as these are unprecedented times.

As for the debate on the wider economy, Members have debated this issue a number of times. I will not go into the statistics again, except to note the comments of my colleagues on the Government side, such as Senator Hanafin, who is present, or Senator MacSharry, who also speaks on the economy. Each time they have spoken, they have predicted growth rates, unemployment levels etc. for this year that have been completely inaccurate, as the variables have risen or fallen. Although Opposition Members have been accused of talking down the economy, as Ireland officially is in recession at present, I cannot be accused of talking it down any more. Ireland is where I thought it would end up, were the Government's policies to be pursued. Unfortunately, taxes are down by €7 billion and unemployment has grown hugely to 285,000 people.

The phrase today used about the toxic trio by the Fine Gael Party probably is a little unfair, because toxicity gives the impression that such people cannot be touched. Unfortunately, the toxic trio must be touched because were they allowed to stay in their positions, Ireland would be left in a bad way. I refer to a Taoiseach who was the Minister for Finance who turned around the economy in an unbelievable manner within a couple of years, a Minister for Enterprise, Trade and Employment who does not appear to have any meas on her portfolio and a Minister for Finance who only reacts when he must. While huge international factors affect the economy, they are not solely responsible as many domestic reasons have caused Ireland to be in its current position. Bringing forward the budget does not solve anything and in many ways is a political stroke. I agree with previous speakers that an issue arises in respect of bringing forward the budget date to a time when the November tax returns and the self-employed tax returns, which it is likely will fall significantly, are not yet in.

When the Government speaks on the economy, it often focuses exclusively on public finances. From my perspective and that of the Labour Party, it is time to diversify from that practice, as it merely serves as a smoke screen from behind which attacks on the public service in particular are contemplated. A plan is needed for economic recovery. It is well-known that until 2001, Ireland had a growth-led economy and from 2001 onwards, a bubble in the construction industry was being built. We were eating our own flesh and it was not sustainable. We had an over-dependence that was interlinked with a loss of competitiveness and consequently, we must move on.

In this regard, my party has put forward a number of proposals. I note very few proposals have been put forward by the Government side. However, I will mention a couple that are available in a document that has been issued by the Labour Party within the last 24 hours to demonstrate it has been acting on this issue and to avoid accusations from the Government that it does not make such proposals. The national development plan in its entirety must be reconsidered. While it comprises many aspects, I suggest that if we are to develop the high technology and high value fields, the broadband infrastructure is one area that must be considered. I have been speaking on this subject since I entered this House. I worked in this sector and know people who have emigrated to the United States, who are known as silicon Paddies, because they cannot expand any further here. Ireland has a problem with the development of small and medium enterprises into larger enterprises. They cannot do so and are choking. While the educational standards are present, the requisite investment techniques and infrastructure are lacking.

Moreover, if improved value for money in respect of public spending is to be considered, although certain quangos should be examined, the issue of the tier of middle management that has been introduced by the Government also should be investigated. If Ireland is to pursue the correct economic strategy, there must be diversification from, and stimulation and redirection of, the construction sector. While it has concentrated on one sector, I argue it should be directed towards schools and a national insulation scheme as so doing will achieve several results. There will have been investment in education for the future and future energy savings will be made. Moreover, one will recover one third of what has been spent through taxation and in addition, approximately one fifth will be recovered through savings on social welfare payments to those who would be employed.