Ivor Callely (Fianna Fail)

I have listened to the various contributions to this budget debate with great interest. I welcome the opportunity to participate in the debate at a time when the global economy and the world financial markets are in a state of freefall. The collapsed economy and financial markets are such that the various attempts by governments, the European Union and institutions do not seem to have had any real impact to date.

The uncertainty in the international economy and the financial environment places us in a very difficult position, but we have to assess and meet that challenge head-on. We are fortunate, due to our economic success over recent years, to be in a strong position with a fairly solid foundation. Let us not lose sight of what has been achieved. Our country has been transformed. We have all gainfully witnessed an unprecedented and hugely successful economic period. Ireland is now seen internationally as an attractive place to do business. We enjoy a great reputation of being confident, dynamic and highly qualified. As a result, success has been built and sustained and given the particular turbulent global challenges we face today, one does not have to be a rocket scientist to know how difficult it will be to sustain hope and confidence in the face of current daily challenges.

No one is immune to the challenges ahead, and each one of us needs to deal with the competing realities of our aspirations to improve the quality of life for all. Listening to some of the Opposition, they paint a defeated and sad outlook from a desperate last cry of wolf, barely standing on their last legs. They have helped to do one good thing with their desperate cries; that is, they have highlighted that the odds are stacked against Government, mainly due to forces outside our control due to the global economic and financial turmoil. They have jumped on the easy fix gravy train and joined in the chorus of outcries on all the unpopular decisions.

I have a simple message. Life and circumstances change, but one cannot give up. We have to find new ways, a new vision and reposition ourselves. The essential difference between Fianna Fáil and the Opposition is that the Fianna Fáil approach and record is positive and the Opposition's is one of negativity.

The Taoiseach, Deputy Brian Cowen, and his ministerial team are endeavouring to protect the progress we have made. They are determined to stabilise the current situation, correct our fiscal imbalances and position us to benefit when the upturn comes. This has necessitated a significant reduction in Government expenditure, revenue generation and the imposition of certain other measures across the board. The public have seen clearly that what must be done is being done. There is a genuine appreciation of what is required, while not necessarily agreement on all aspects on how to achieve our target. We are, by no means, out of our difficulties yet, but there is almost a tangible acceptance of the need to proceed and a determination to get through this period and back to a destiny that Fianna Fáil is capable of delivering, as proven over the past decade.

We need to make tough, but correct, macro-fiscal decisions. We have come from a position where we enjoyed cash surpluses for the past number of years, to a serious deficit situation, where we now have to borrow. I support, in principle, the prioritisation that the budget for 2009 contains. The €57 billion spend is based on the delivery of long-term economic and social improvements, through a combination of focused targets, and paves the way for a brighter future for all.

The Taoiseach stated: "We are determined to keep our focus on making sure that we come out of these difficult times as quickly and as strongly as possible". The budget reflects the Government's focus on reducing expenditure on non-essentials and to spend moneys in areas of greatest priority. I do not have the opportunity in the time left to discuss some issues I wanted to raise on expenditure on non-essentials and expenditure on areas of priority. I hope I will have the opportunity at some point to put those on record.

I welcome that this budget continues to heavily invest in areas of priority, in particular the national development plan, transport and communications, the environmental services and research and development, which will help to drive the future economic progress of this country. I equally welcome the €20 million spend, and the numerous improvements and increases in social welfare, in particular the extra €166 million package of supports for older people, especially the weekly payment increases, along with the €30 million energy package, with an extension of the fuel allowance season to 32 weeks and an increase in the fuel payment to €20 per week.

To a great extent, this year's budget is overshadowed by the income levy and the withdrawal of the medical card. I am concerned that the withdrawal of the eligibility criteria for the medical card is referred to as affecting those over 70. Fianna Fáil philosophy has always been caring and compassionate to our older people, which is reflected in the number of unique and innovative feature contained in our health and social welfare services. I have a proposal but I do not have time to put it on the record. I wish to advise the Minister of State that the issue of the withdrawal of medical cards needs to be revisited.