Martin Mansergh (Tipperary South, Fianna Fail)

It is my understanding that officials continue to be available to the Opposition for further briefing subject to the requirement to maintain Cabinet confidentiality. It is the responsibility of Government to draw up the budget but everything possible has been done to ensure the Opposition has the information it requires to make constructive suggestions and constructive criticism. The Minister indicated yesterday evening in the Dáil that he is open to considering all constructive proposals to get us through this economic crisis and he is looking to the Opposition for their support, where they can give it, for the necessary measures we will take. Decisions will be taken in the national interest on the basis of fairness and equity. The Government will look to place the greater burden on those who can most afford to bear it while trying to protect the most vulnerable in our society.

In his contribution, Senator Twomey referred to the banking situation. The Government's approach here has been structured and considered. It has been informed throughout by advice from and in consultation with the Central Bank and Financial Services Authority of Ireland, the National Treasury Management Agency and legal and financial advisers. We will continue to have regard to discussions and agreed principles at European Union level.

The Minister for Finance is moving as a priority to reform our regulatory structure through the proposed full integration of the Central Bank's responsibilities with the regulatory and supervisory functions of the Financial Regulator. This reformed structure has to deliver new high standards of banking and financial regulation and corporate governance. The Minister for Finance will be looking to ensure that best EU and international practice is applied to Ireland's regulatory system.

The Government is determined to signal strongly that the types of practices followed in some of our institutions are unacceptable, that the regulatory lapses will not be repeated and that Ireland remains committed to the continued development of a soundly based, well regulated and competently supervised financial services sector. It also has to be a form of regulation that allows the system to breathe. I was at an IFSC conference earlier this morning. There is always a temptation in situations such as this, because things have gone wrong, to come down so heavy in all directions that it becomes very difficult to operate.

We have a highly successful international financial services industry, which I am pleased to say has come relatively unscathed so far through the global turmoil. On behalf of the Minister, I invited the industry to make submissions on some of the regulatory proposals that are coming up at EU level because we want to work closely with it to maintain employment. One of the speakers this morning said the creation of the IFSC was the single most valuable and important development initiative that has taken place in the past 20 years.

In setting out expenditure adjustments Senator Callely referred to public procurement, an area for which I have responsibility. I am pleased to say that to pursue expenditure reductions in this area the Office of Public Works will shortly establish a national operations unit for public procurement designed to achieve savings, or more from less in Government expenditure.

Senator O'Toole mentioned the benefits that have been brought about by social partnership. I am pleased the social partners have accepted the invitation from the Taoiseach to return to talks and engage again on the current difficulties that are facing us. There are really two schools of thought on this. The Leas-Chathaoirleach will have heard me many times when I was finance spokesperson in this House strongly defend the system of social partnership which, notwithstanding recent disagreements, has an important and constructive role to play. Some of us will have heard on the radio this morning a description of the situation in France where that sort of co-operation between the social partners on either side and Government seems to be totally removed from practical politics. Perhaps as a smaller society we have the advantage. All of us know in our hearts that if we do not hang together we will hang separately and that it is essential if at all possible to pull together, accepting that the Government may take measures and initiatives to which one or other social partner may not be able to fully subscribe, but which does not alter the necessity for it to be taken.

Rather than prolong the discussion further I will draw my remarks to a conclusion. The Leas-Chathaoirleach made some interesting points himself on the subject of public private partnerships. To be fair to the Government and the Department of Finance, they have never adopted a gung-ho, uncritical attitude to that system of financing projects. He certainly raised an interesting point although I assume that in all probability the deflationary period into which we have entered will not last very long. Nevertheless, it is an interesting point.

I very much agree with the Leas-Chathaoirleach on one point, and it is something I try to practise in the area of my Department where I have executive responsibility, namely, the Office of Public Works. At times we have been much too ready any time we have had any kind of problem to hire expensive experts of variable quality from outside. I refer to the situation that has existed over many years. I have read reports that it seemed to me could perfectly well have been put together by civil servants. There are areas and occasions when it is right to bring in outside expertise but that should be done much more selectively. I am referring to all Governments over a long period of time. Any element of patronage should be removed from the situation. It is something we cannot afford. Our public service costs us a significant amount of money so we should use it to the maximum extent. We should also offer it encouragement on occasion. This may sound strange and as though we lack confidence in its capacities. It is excellent in many areas. I broadly agree with the views the Senator expressed on that subject.