John Gerard Hanafin (Fianna Fail)

The Opposition parties expected economic growth rates of 4% and advocated increased public expenditure. When they lecture the Government and tell us we got the country into this mess, they are wrong. The recession was caused by an international crisis arising from the refusal to support the banks in the United States and the subsequent collapse of Lehman Brothers as well as the debt bubble. The Government had plans to manage a soft landing. This expression is not new to the Opposition because it, too, was preparing for one.

We must now deal with a difficult situation. Unemployment is rising and the Government must tackle a difficult fiscal position. It has already managed the banking crisis. If the two main Opposition parties had been in power at the time of the banking crisis, they would have taken diametrically opposed positions on the issue. Perhaps they took those positions simply because they were in Opposition. When one is required to take decisions, one must act responsibly and deal with the world as it is rather than as one would like it to be.

We are experiencing a severe contraction in the economy and a large domestic imbalance must be corrected. How will we return to sustainable growth levels that will enable us to create further employment? We must secure the banking sector, as we have done. When we introduced the bank guarantee we ensured the banking industry remained solid. At the time, the Opposition questioned our approach. Within a short period, however, other European countries copied our approach to ensure their banks were provided with the security and solvency necessary to remain viable.

The Government has to address a severe reduction in revenue. When sorrows come, they come not as single spies but in legions. When the economic downturn commenced not only was confidence affected with the result that people stopped spending but revenue streams declined across a large area, including income tax, corporation tax, stamp duty, VAT and other more peripheral taxes. At the same time, expenditure requirements remained stable, which obliged the Government to produce a plan. It is this plan the IMF and OECD have endorsed.

The Government's plan is to reduce expenditure and increase income to reach the 3% gross domestic product borrowing requirement by 2013. We could have taken a populist route but chose instead to put the State first. The hammering the Fianna Fáil Party took in the recent local elections brought to mind the events of 1014 when Brian Boru, having won the battle of Clontarf, paid a huge price. In the same way, my party paid a huge price for doing the right thing by the nation. We have acted quickly and have chosen not to defer hard decisions. This will stand to the country in future. In other words, we are putting Ireland first. Every day, we hear what should or should not be cut. I welcome Senator Alex White's comments referring to the fact that I do ask questions about this regularly. However, when I hear the Opposition Members asking "What are you doing about the cuts or closures?", I ask them what they would have done. How would they bridge the €20 billion gap? That answer is never forthcoming.