Jim Walsh (Fianna Fail)

Like other Senators, I acknowledge and welcome the constructive contributions in this House on the current economic situation. We are facing the most difficult economic challenges any of us have seen in our lifetime. I am not sure whether we will emerge unscathed. I am not sure whether other countries, including the United States, which is the largest economy in the world, will be able to cope with these challenges. As a country with a small population and a great export dependency, we will rely on some degree of global recovery in order for our economy to be refloated.

In the meantime, there is a vital need for national consensus in order that decisions taken are measured, fair and supported wholeheartedly by everybody. I was asked to do an interview this morning on local radio during which I set out what I believe should happen. As I have been saying for some time, there must be significant reductions in pay, particularly in the public sector. A reduction in numbers is needed and we will be affected in a range of other areas. I was surprised when some working class people took the trouble to telephone me to say that needed to be said.

This is not palatable and no one involved in politics wants to promote such thoughts but if we fail to do it and fail to act together, the consequences for the next generation will be extraordinarily bad. We have challenges in banking and in fiscal policy and we had best not lose sight of the competitiveness loss which needs to be addressed. I hope we will all recognise it is in our interests to support the package of measures we will hear rolled out today, as unpalatable as it may be, and look upon it as only the second of probably five or six instalments that will be made in the next two to three years to try to redress the extremely difficult and challenging position we are in.