Jim Walsh (Fianna Fail)

I support those who have called for a debate on the economy. The imminent publication of the report by the IMF may provide Members with a platform on which to base such a debate. There are three strands to the economic situation in which we find ourselves. One is the banking crisis, obviously, and it will be very difficult, even despite the National Asset Management Agency, NAMA, to get credit flowing in the short to medium term. Moreover, this probably will be the experience globally. Second, the fiscal issue constitutes a major challenge to the Government. While this reflects what is happening in many other countries, it is much more acute in Ireland because of the disparity between income and expenditure. Such a debate must focus on public sector pay as there is no way to correct the public finances without addressing serious issues and reductions in that regard. Moreover, it will mean, however unpalatable it might be, considering how scarce resources are applied within the social welfare system in order that they are targeted at those who are most in need.

A third element, which appears to be playing out in the debate among the social partners at present, pertains to the injection of a stimulus package to try to protect and preserve jobs within the economy and to try to provide an impetus to returning to some form of growth in the short term if possible. I suggest that given resources are so scarce, one way of acquiring the €1 billion that is being sought would be to suspend the benchmarking awards, from which all Members have benefited, for a period of three years. Were benchmarking suspended across the public sector, the moneys saved could be applied and one might secure a buy-in from many people within the public sector to participate in this regard. Such a stimulus package is needed because a recent report showed that the growth rate in China, where there has been a massive injection of funds in an effort to stimulate the economy, will be between 6% and 8% this year. Moreover, predictions have been made that the United States may see an upturn on foot of its stimulus package. However, Europe, which has not followed that line, may lag behind somewhat. A debate in this regard would be useful.