Larry Butler (Fianna Fail)

Nobody likes to contribute more than he or she has to, regardless of how the economy is functioning. The Government has made the first step in making us fulfil our obligations. If one considers how other countries have been handling the downturn in their economies, it is apparent they have handled it in a way that is not very different from what we are trying to do.

On the one hand we are trying to deal with a banking crisis and on the other we are trying to deal with the public finances. We have put together a small package of measures that we intend to implement in the next two to three years. We decided to tackle the problem over a specified period. We have a plan.

If we were to administer a sharp shock to the economy we would destroy it. We are already taking €2 billion out of it through the taxation levy and we are taking a further €2 billion through budget taxation measures. A total of €4 billion will come out of the economy this year. If we were to take any stronger measures than that we would shock the economy into a worse situation than we are in currently.

It is important that the public sector is now going to play a major role in fighting back and helping the economy to recover because 350,000 people are unemployed. People who have secure jobs are paying only a small percentage — 4.5% — towards a pension. If they were in the private sector they would be paying 25%. They are still well below the mark in terms of what they are paying towards their pensions and they have guaranteed pensions. Waterford Glass employees who paid into a pension for 40 years found themselves with no pension. Public sector employees have secure jobs with secure pensions and that is why they are asked to pay a contribution.

I am concerned that people are making a fuss about such a small contribution, which is what it is. We need €16 billion to breach the gap and this is a small contribution towards that amount. It is very welcome and necessary and we must be seen to do that. The social partners are on the street and not playing their part to ensure the economy recovers. When things were good they were playing ball and everything was working well. They were represented on this board and that board, but where are they now that we need them? They are like the snow; they are gone. They walked away when we needed to make a decision to bring in revenue and they left their members high and dry. That is not taking responsibility.

Problems are evident in various industries in the private sector. For every person in the public sector, two or three people in the private sector are supporting their jobs. We are not living in the real world if we do not realise that. We need to put a plan in place that will work. The banking sector will have to be dealt with after that. Any economic recovery will require a good banking sector. We need to move quickly on that. We have to be cautious also because every day we can see that banking shares have gone to the floor in Ireland, London and New York. We therefore may have to consider nationalising all our banks. I would not rule that out. That may be an important step on the road to ensuring security of the banking system. It is an option but I am not a banker and I would like the present banking system to continue as it is.

It is important that the social partners return to talks as soon as possible and that they produce a plan. We have an overall plan and it is important to bring the social partners back in to support it. Senator Harris proposed a national bond to get people involved in other ways to support the economy. That could be a good way to put the nation first. People would like to make a contribution and the cost of the bond could be pitched as low as €10. People could make small contributions to the bond, which would demonstrate their solidarity with the State and that everybody was working together to solve our problems. I am grateful for the opportunity to make a contribution and I commend the Bill to the House.