Liam Twomey (Fine Gael)

Now it is all jargon. Of course we know we must be competitive, but keeping our prices and costs down is what makes us competitive. We must be realistic and, as a small, open economy, keep down the costs of government.

The trade union leaders suffer from the same shell-shocked attitude as Ministers when they realise the gravy train has come to a halt. However, ordinary trade union members, such as teachers, nurses and gardaí, acknowledge that we may have to forego this 6% increase. It is scandalous that this 2.5% increase was paid last September, even to Oireachtas Members, in light of the circumstances. It is probably not on the same scale as the 14% increase Ministers wanted to award themselves last April but it still shows a disconnect from what is happening in the wider economy. The Minister must face up to that fact and be realistic.

A pay increase of 6% next August must be postponed. The Minister may be the person to say this clearly if the Tánaiste and the Taoiseach are skirting around the issue and not being clear. The reason for the lack of confidence in the Government is that Ministers are not showing leadership. The Government is not speaking with a clear voice and giving a clear message to the people of Ireland.

We are facing an unprecedented crisis in the public finances which most people under the age of 40 have never before experienced. We need to give them that confidence and leadership. Older people and those wishing to retire who have private pensions and people who bought shares to cushion their retirement, have seen those investments decimated. An individual with €200,000 invested in bank shares will have seen those devalued to €10,000 or €15,000. There has been an unbelievable collapse in the value of people's property and in the value of retirement investments.

I ask the Minister in his response to be clear about what is happening to the banks. The Central Bank, the Financial Regulator, the Government and the banks have indicated that everything is fine, that the stress-testing of the banks up to 2010 means there is no problem. If there is no problem with the banks, the focus should be switched to the economy. Small businesses across the country are having increasing problems in accessing funding. Has the Minister any bright ideas for next year to improve short-term financing for small and medium-sized businesses? It is quite clear the banks are not going to do so even though they seem to be safe now. This is the message coming from the Minister, the Financial Regulator and the Central Bank. I ask the Minister for a specific response.

One issue which has annoyed me and which was referred to yesterday in the Lower House is the Lisbon treaty. The Lisbon treaty has not a hope in hell of being passed by the Irish people on rounds two, three or four if the Government continues to treat the Irish people as if they are superfluous to the requirements of the treaty. This House is where the Taoiseach should be making his announcements, not flying around Europe talking to leaders of other countries and discussing——-