Billy Kelleher (Cork North Central, Fianna Fail)

We call it as it is. We like to be up-front and honest. In the context of this budget, people generally accept that the challenges must be faced immediately. We cannot put this on the long finger. The Taoiseach said in the Dáil this morning that we are trying to ensure we restore stability to the public finances, that we remain competitive and that we do not create any hindrance to, or place any burden on, business and investment. In the long term, the policies being pursued in this budget will be proved correct.

Nobody should be under any illusion but that this year and next year will be very challenging because of the international backdrop. Rising commodity prices and fluctuating stock markets coupled with the credit squeeze have caused grave uncertainty. As a small global open economy, we are very dependent on inward investment to stimulate growth and on our export markets.

As announced this morning, unemployment in the United Kingdom has risen to 1.79 million. That indicates there are huge pressures on the stronger economies, including Germany and others. Across the European Union, many of our trading partners are under huge pressure and there are challenges in the context of inward investment in the case of the United States.

The IDA is actively promoting Ireland and we should use every opportunity to promote Ireland as a place in which to do business. I mentioned earlier our corporation tax of 12.5% and our light regulatory framework. Year after year many international surveys show that Ireland is a very competitive place in which to do business. Our best selling point is that we have a flexible, highly mobile and highly educated workforce, which we must continue to ensure. When we talk about flexi-security in the context of flexibility in the workplace and security of employment, we must ensure we get the dynamic right and that we are not too inflexible and too securitised.

I will welcome comments from Senators and look forward to hearing their views.