Mary White (Fianna Fail)

He was not. I wish to address a number of points. The message that was signalled by the decision today is important because many Irish people are panic-stricken and afraid of what is happening in the country. Therefore, this was a first-class decision, intended not to protect the banks but to maintain our economy.

As an entrepreneur, business person and co-founder of Lir Chocolates, I record that this recession in Ireland and globally should serve as a wake up call to our dependence on the people and their companies who export goods and services or compete with imports on our domestic market. They are the real anchors of our economy and the source of the purchasing power which has sustained the building boom and the expansion of new shopping centres throughout this island. We were mesmerised by the boom in consumer spending, much of it fuelled by credit cards, borrowing and by the massive profits to be made on a property deal. If one could sell a quarter of an acre for €250,000, why would one be a fool and try to make a living by going down the hard road of starting a business or manufacturing or developing a new service for export. I have been there and done that. I know the reality of what is involved. Connie Doody, myself and all our staff have worked 24-seven for 16 years to sustain our company. It sticks in our guts that people could make fortunes over the sale of a quarter of an acre of land.

We have become complacent over the basic fact that at the end of the day our massive imports and foreign holidays must be balanced by our exports of goods and services. I have said that not today nor yesterday but previously in this House. One indicator of that complacency and failure to distinguish the crucial economic role of our exporters was manifested in local authorities in Dublin and elsewhere imposing the same development levies on the manufacturer and exporter as on the builder of a shopping centre or multi-storey car park — the same levies were imposed when they were not producing anything. Without the exporters we would not have the purchasing power to buy the dazzling goods, mainly imports in those same shopping centres, or to pay the expensive charges in the multi-storey car parks.

That great Irish man, Dr. TK Whitaker, when speaking recently on RTE's "Morning Ireland" on the occasion of 50th anniversary of the publication of the ground-breaking economic development plan, which he masterminded, said that restoring Ireland's trading competitiveness was the number one priority. I have said that over the years here, but nobody was listening. When the economy was booming, the steady erosion of our competitiveness went largely unheeded. Now that we have to fight our way out of a recession and global crisis, in addition to restoring stability to our public finances, there is no more urgent priority than restoring competitiveness in our economy in order that our manufacturing and trading companies can compete and our tourism industry can recover.

All the indicators of the loss of competitiveness have been charted in unambiguous terms by the National Competitiveness Council and Forfás year after year. Some of the reality checks, as spelt out in the Forfás annual report for 2007, include the following conclusions. General price levels here are among the highest in the EU 15 and this situation is worsening. Labour costs are increasing across a range of sectors at a rate well above the EU average. Non-pay costs, including renting or buying property, and professional services such as legal and accounting services are also more expensive in Ireland. I had to obtain advice on two ocassions from legal companies here which are below the radar and are not seen as bêtes noir. The fees legal companies charge are immoral. There is no accountability. They can charge what they like and they are not on the radar as villains of this piece. These are fairly startling conclusions by official bodies not given to hyperbole and I am acutely aware of how difficult it is for exporting companies, such as Lir Chocolates, to succeed in the face of such handicaps.

The recent national pay agreement, agreed in principle, marked some recognition of the need to restore our competitiveness, but I believe there should be a pay freeze across the board for everybody for the next two years. We need a pay freeze for the next 24 months to get back to a sense of reality.

We are aware of the energy the Government is putting into preparing the budget. I am thrilled and proud of my Government for the decision it made during the night to protect the banking system. I am proud and delighted a decision was made. Senator Quinn was not here when I began my contribution but I said this decision is not to protect the big-shots who run the banks or the managers; it is to keep our economy on the move and to show the world that we are still in business.

After the budget on 14 October I would like the Government to devote similar energy and focus to restoring competitiveness and to make it realistic for people to compete internationally. The small and medium size businesses, which are the lifeblood of our economy, must be able to compete internationally.