Larry Butler (Fianna Fail)

I welcome the Minister. I hope I will not have a negative tone. I will do my best to make a contribution on the basis that there must and should be solutions to all the problems we face, and I am sure there are. The Minister has taken very prompt, swift and effective action in the banking situation. Last October we brought in legislation to deal with the banks. By and large, the banking system has been stabilised and our banking situation has improved. We took prompt action on nationalising Anglo Irish Bank. It was vitally important that this be done swiftly.

Some speakers here this morning said there was inaction in these situations; there was not. The actions were precise and well-measured. With the banking problem we have had throughout the world, countries have put huge amounts of money into banks and it did not stabilise the situation. Britain was tired of pouring money in on a weekly basis and found it had to nationalise the banks in the end. We have been dealing with the banking situation since October. The pork crisis was dealt with very swiftly and we showed the rest of the world our food product is top of the range.

I have heard people talking about "propping up" the banks. We cannot have a stable economy without having a solid banking system. I have heard people say we are keeping the "fat cats" in there. We need a proper inquiry into all banking situations and new regulations should be put in place. That should be part of any condition of recapitalising the banks. We have not yet spent any taxpayers' money on support for the banks. The guarantee scheme supports depositors in the banking system. It is important that when we recapitalise the banks, which we will, we have a guaranteed share in the banks and that the banks pay a dividend to the pensions scheme. That is vitally important. I do not want people to say we have put money into the banking system. We are lending money to the banking system. They are paying us for it. The guarantee scheme also carries a charge in that regard.

It is important we turn to how we will regenerate jobs in the economy. It is vital to ensure we have proper training schemes for those who are losing their jobs. Our support for the smart economy scheme, which we brought out before Christmas, will ensure we have a focused look at how we will rejuvenate the economy. I welcome the recent cuts and savings in the public sector. We had to do that. It was very important to send the message to the global markets that we are taking action to put our public finances in order. That was a first step. We all know we have a lot further to go and there will be pain involved. There is no use in saying there will not be pain for you, me and everybody in this House or in the public service.

The public sector gives a great service. The people who work there are fine people and they do a good job. We are asking them now to help us out in a time of crisis. It is important that the people in the private sector who are suffering see that we are doing that and that everyone is playing his or her part. In the private sector, 25% of wages go on pensions which are not guaranteed. We have seen people who were working in Waterford Crystal for 40 years and now find themselves with no pension. That is the reality in the private sector. They are not guaranteed jobs or a pension. Therefore, we have to take a certain responsibility in ensuring the country survives this terrible recession.

The lower sector of the construction industry, which is involved in retrofitting, insulation and alternative energy, is important for the creation of new jobs in the future. More than 20,000 jobs are involved. I have done some calculations in this area, as the Minister of State knows, which we have put through the parliamentary party. A cost of €15,000 to €20,000 would bring a house up to a "B" energy rating. This would save the householder 50% on energy costs, which is a major saving. It is important we get this scheme up and running soon because it will create many jobs. To give an example, for every €25 million the Government puts into the scheme, €100 million will be spent in the economy and there will be a benefit of €52 million to the Exchequer. This is in small industries. We could create 20,000 jobs in that sector. In 2008, the turnover in the renovation, retrofit and extension sector was €7.7 billion. That could be increased. We must also bear in mind that a million houses in this country will have to be brought up to standard. We will be penalised in Europe if we do not do so, and this will cost us hundreds of millions. We might as well start there and create jobs. This is terribly important. We are somewhere on the way to doing it, but I would like to see urgency in this scheme.

The Minister has announced the school renovation, insulation and solar energy plan, for which there is a major need. We can have running hot water within our schools for nothing using solar energy systems which can be established at a small cost. This is a wise way to go. I suggest we expedite this. Many people are going on the live register. We must consider PRSI and we must consider all options open to us by which we can create jobs.

Senator Twomey mentioned that he did not have any plan and he hoped we would not be expecting him to come up with a plan. That is a poor response when we have a full-day debate in the Chamber. I want the Opposition and everyone in this House to come together with solutions that are workable and credible. I commend the Minister of State on his speech in which he clearly outlined how things have to be for the future. That is the way forward. We should tell the people up front what we are doing, and then we can get the results.