Larry Butler (Fianna Fail)

I agree with Senator Fitzgerald that action must and, I am sure, will be taken. I commend and support the budget. It was a most difficult one and was not the choice we would normally like to introduce. However, when one considers the economic problems not just in this country but globally, we had no choice but to introduce a very difficult budget.

I disagree with some of the speakers on the Opposition side of the House who said we had too much consultation with the social partners. I believe we do not have enough consultation with everyone. We made some mistakes in the budget, including the medical card changes. That is an example of not having consultation with the social partners and others. We have learnt a lesson in that regard. The Government is right in consulting the social partners. The economic problems are now so big that we will not do this on our own. We need to show statesmanship and leadership. There is also a responsibility on people on the Opposition side of the House who know the situation not to make political issues and to tell the truth to the people. We are doing that now, which is very responsible.

The economic plan we produced yesterday has not received a fair hearing and has been dismissed by some who did not even read it . The jobs arising from research and development into green and renewable energy will be vital. A sum of €500 million has been allocated to research and development. We need to consider how we will implement reform of the public service. Will we reduce the numbers? Will there be a 10% pay cut across the board? We are now looking at different ways of doing things. What happened in Aer Lingus sets an example. When it was planning to outsource some of the jobs, the unions played an important role, which was very responsible on their part, as Senator O'Toole mentioned earlier.

A realisation may be dawning that if people spend €100 outside the country, €20 will not go to health services and schools and may jeopardise our jobs. We need to be serious about becoming responsible to ensure we keep our jobs. Even though we do not have VAT on food, people are going across the Border to spend money. How can it be 20% dearer here given that we do not charge VAT on it?

The health service delivers very good service when one gets into it. However, there are certain areas such as accident and emergency units which I believe the Minister is trying to streamline. Some €15 billion or €16 billion is being pumped into the health service each year over which we have not had control. It is time we took back control of the health service. Instead of having the Health Service Executive as an autonomous body, it should be more answerable to this House.

Before there is any recapitalisation of the banks we need to ascertain their loan to asset ratio, especially in the land area, and asset values need to be written down. When we spend public money, we need to know we are not spending it badly. It is quite right for the Minister to take time over this. Action must be taken. The phantom loans revealed in Anglo Irish Bank yesterday are of grave concern. Having read the newspapers this morning, the public will not have been reassured about our banking system.

I commend the Minister on trying to shelter the least well-off, including old age pensioners and people on social welfare. In difficult times we would have liked to have been able to give them more. They can be assured by Fianna Fáil that we will never let down older people or less well-off people. We will try to give them as much as we can.