Larry Butler (Fianna Fail)

Senator Quinn has summed up much of what I was going to say. Over-regulation in any country is not the way to go. However, I welcome the motion, most of which is reasonable. What I do not accept is that the Government has not handled well the extremely difficult situation we have experienced during the past 12 months. I believe it handled the situation confidently and in a measured way. The public does not have confidence during times of recession and, as such, no matter what a government does in a recession Joe public, whose money is worth less, will opt to defend rather than spend it. This is happening not alone in Ireland but worldwide. Income from taxes on which we depend are down.

I visited the UK last week where spending on the high street is down by approximately 55%. That is what counts. One measures one's taxes by what comes in from the high street. Currently, the high street has no confidence in the economy. Until such time as we begin to come out of recession the public will not spend. Germany did not experience a property bubble but its car manufacturing industry has fallen through the floor. Some 45,000 people employed in that sector are on short-time working. If the situation does not improve soon there will be major redundancies in that industry in Germany, Europe and America. The car industry in America is seeking a further bailout. It is entirely dependent on the public.

One must ask oneself why the public decides not to spend money. The answer is simple: they are afraid to spend money that they might need another time for more important matters, including if they lose their job or need to visit the doctor more often. These are the types of problems that arise when there is a downturn in an economy. I have experienced five economic downturns, three in the UK and two here. I have a great deal of experience in terms of how a downturn in an economy affects a country. As I said, I went on a short trip to the UK last week. The construction industry in the UK is virtually non-existent. There would be nothing happening in the UK in terms of construction were it not for the Olympics. While most of the infrastructure required is already in place, there are steps that must be taken to prepare for the Olympics. The UK has handled this situation by imposing extra taxes on people, in particular people in London. It is interesting to note how other countries are handling the crisis.

It is natural that people blame the Government for all that has gone wrong. It is the norm when it rains to blame the Government for the bad weather.