Seanad debates

Thursday, 5 February 2009

Stabilisation of the Public Finances: Statements

 

1:00 pm

Photo of Joe O'ReillyJoe O'Reilly (Fine Gael)

Ba mhaith liom fáilte a chur roimh an Aire Stáit. The proposals that are the subject of this debate are welcome only in so far as they mark the end of the period of prevarication, indecision and rudderless leadership. We have had no Government, in effect, for the last eight months. We have lost some of the international credibility we had built up. These measures are welcome only in so far as they represent the end of that horrific period. However, I do not welcome the unfair effect these proposals will have on the lower-paid sector of the public service. There is no escaping that reality. It is unreasonable to expect young people who are burdened with mortgages, child care bills and travel expenses to make this contribution to pensions, in addition to the 1% income levy. Public servants at the lower end of the wage scale already have little disposable income. While it is acceptable at a certain level, it is unreasonable in many cases at the lower-paid end.

Unfortunately, this problem is exacerbated by the fact that bonuses are being paid willy-nilly throughout the State. Bankers and media stars in RTE are being paid enormous salaries. Public servants are justifiably angry about this series of injustices, irregularities and unacceptable practices. We are putting the cart before the horse in this instance. What about tax exiles? What about the plethora of waste at Government level? Over the last 11 years, the Government threw money around like confetti on projects like PPARS, electronic voting and the Red Cow roundabout. Nothing has been done, in effect, to halt such practices. I have already referred to tax exiles.

In his opening speech, the Minister of State spoke about the need to cut expenses and other bills. What about consultancy contracts? What about public relations expenses? What about the plethora of advisers in the offices of Ministers and Ministers of State, which is costing the State a fortune? It is the greatest national scandal confronting us at the moment, particularly as this country has a native Civil Service of a high calibre with high entry requirements. It is an abomination and a nonsense of the worst kind that a Minister of State's office is staffed by a plethora of non-civil servants when we have a brilliant native Civil Service. I am concerned about that kind of wastage. What about the quangos? I am concerned about the young civil servants who are following this debate. It does not matter whether they are in single or double-income households. Nothing is being done about all the other anomalies and forms of wastage.

Senator Boyle made reference to the Government's aspirations, but we have put the cart before the horse. We need to get the public to engage with, accept and understand what we are doing. In the context of this debate, we should be talking about introducing a real programme of job creation. I welcome the announcement of a scheme of insulation grants, but they need to come on stream immediately. A radical school building programme is needed to reduce the cost of prefabricated buildings in schools throughout this country. We need to consider the money that would come back into the economy if the cost of paying social welfare to construction workers could be reduced. It is bizarre that we are not building schools across this country. There is a huge deficit in the quality of our school buildings. No radical effort is being made to train people. Some months ago, I proposed in this House on many occasions that the introduction of a FÁS scheme was seriously needed to retrain people who had half-completed their apprenticeships when they lost their jobs when building firms folded.

What about energy costs? There is no case for increased prices. The increase given to Bord Gáis Éireann and the ESB last year was predicated on the then price of oil, which was €1.46 a gallon. Oil is a fraction of that price now. Why has the Government not reduced energy costs? It has been aspirational in talking about it. Everything that has been talked about has been aspirational with this Government, but why was that not done? Why was the regulator not called in? Why has action not been taken? Action should have been taken on this months ago. When oil prices fell, ESB and gas prices should also have fallen. All the wastages in the economy could have been eliminated months ago. This is why the people are cynical and bitter. This is why a Waterford Crystal worker who will lose his or her pension is angry.

Why has the Government not engaged properly with the banks to date on the credit business and on putting money into the economy? Why is the European money that can be drawn down for reconstruction not being used? There are so many whys that people are angry, and justifiably so, and it is time for coherent action.

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