Ivor Callely (Fianna Fail)

Our country is battling the most severe global storm experienced in decades. The Irish economy has hit a turbulent patch and this is totally different from any downturn we experienced in the past. Some of my colleagues have stated that we have been through this before and that we will get through it again. As Richard Nixon says, it is only when one reaches the dizzy heights that one appreciates the lowest valley. We are battling this storm coming from the dizzy heights of a booming economy to a serious crash in the economy with deteriorating conditions elsewhere in the global economy along with exchange rate movements which have been most unhelpful. The international markets and financial institutions play a pivotal role in our economy.

The housing market has slowed down to a near standstill and has adjusted other sectors of industry. This is especially noticeable in the retail areas of bedding, furniture, flooring and soft furnishings. Consumer spending has been curtailed and a broad spectrum of businesses are experiencing difficulties, the car sales sector, for example. Other sectors that feed into our economy are feeling the pinch and there is thus a visible decline in activity with reduced spending across the board which has triggered other difficulties such as unemployment and uncertainty.

Many of the factors weighing down economic developments will continue throughout 2009 and into 2010. International forecasting agencies are projecting that the global economy will record negative growth which does not bode well for a small country like Ireland which depends on its exports. However, there is a view that the markets will pick up in 2010 and there will be some modest growth in 2010.

Many of our difficulties are related to the manner in which our financial institutions carry out their business. I have raised this issue with the highest authority and have been assured the banks have assured the authorities they are open for business. That may be so but I suggest that the banks' approach to business should be closely monitored. Are the banks operating in a pragmatic and realistic manner given the current climate? I pose the question and I understand that the banks are causing serious and grave difficulties that warrant special focus in light of the fact that they are receiving support to recapitalise.

I refer to the opening remarks of the Minister of State. Our requirement for the banking sector is that it will serve borrowers, small and medium-size enterprises and all stakeholders in an honest and straightforward way and ensure customers and consumers are treated in a reputable and respectable manner. I wholeheartedly support the Minister of State in that regard. We should neither underestimate our challenges nor overstate our difficulties. It is important to have a positive attitude to our future and the opportunities that may present.

Last week, we witnessed what many believed would never happen, namely, the inauguration of the new President of the United States of America, Barack Obama. This is a president who has already raised the bar on many issues and who has brought hope and confidence for the future. It is no exaggeration to assert we are at a point in our history where we have never been able to see more clearly what we can achieve. The Irish "can do" attitude has characterised our success before and it is all the more necessary now.

We have the basic ingredients of a good infrastructure, excellent educational and research and development facilities, diverse markets, established trade links, an entrepreneurial and determined population and much more. We know the resources exist and we can get them working, especially with the correct incentives and investment policies.

The Government has a wealth of ability, knowledge and experience and it is eager to get down to the task of getting us moving again along the road we successfully travelled in the past. I wish all the parties in the social partnership well in their endeavours.

The deterioration in revenue and the increase in expenditure has brought us to a position where our national debt in 2007 was €37 billion. An additional €18 billion in 2008 has brought the debt just shy of €50 billion. We are borrowing €50 million a day as our basic daily requirement. I support the focus on restoring stability to our public finances and the rebooting of our financial institutions to meet customer needs, as outlined by the Minister of State, especially with regard to finance and credit requirements, and the commencement of the process of restoring confidence and competitiveness.

We need a framework to include all stakeholders which will be even and fair for economic recovery. We need to initiate a range of pro-enterprise tax measures to stimulate activity and employment opportunities. We need to reduce administrative burdens and regulation on business. We need to create favourable opportunities for enterprise development through the generation of renewable energy resources, green enterprise and the smart economy. We need to ensure wage moderation and flexibility consistent with a competitive position. I refer in particular to the need to address the minimum wage and other cost factors such as regulation adherence costs. I meet people who are active in the marketplace and are trying to adhere to the regulations in place in the Republic while they cannot compete with the Six Counties. This situation must be addressed or else we will continue to see what has happened in Dell and in other places. We must get real and be pragmatic.

I support the stimulation of the economy by pumping billions of euro into the capital investment programmes, the multi-million investment in motorways, the roll-out of broadband, the investment in the commercial sea ports, and the upgrading of water services, school buildings and health facilities and social housing. A total of €20 billion will be invested over a period of years in ESB, EirGrid and Bord Gáis network upgrades.