Marc MacSharry (Fianna Fail)

——-they will be done through social partnership, with the important partners. I am sure Fine Gael's coalition partners, the Labour Party, would not be happy to hear the views on the unions as articulated by Senator Twomey.

As the Minister stated, we are living in unprecedented difficult economic times, probably the most difficult in the history of the modern world. The decline in tax revenue to 2005 levels means that as a nation we are living beyond our means. Income streams are at 2005 levels but expenditure demands are at 2008 levels. This is not sustainable and steps need to be taken to change it.

Some savings have been made so far with some budgetary adjustments. They were difficult for all to take. I welcome more recent adjustments, such as in the medical card scheme and on substitution teachers, which have eased the severity. More savings will be required and must be made. They will be made in the context of partnership and doing what is best in looking after the most vulnerable to the fullest extent possible while still trying to stimulate the economy.

I welcome the initiative in public service reform and the appointment of the four gentlemen, "An Bord Snip", as it is being called. I look forward to the improvements they will make. I am mildly frustrated at the pace we are proceeding in this regard considering the OECD report was published and a task force was established some months ago. I look forward to the tangible on-the-ground changes that will be made. We all know our public service, as the Minister stated, has served us excellently in recent years. There can be no doubt about that.