Paschal Donohoe (Fine Gael)

I am struck by the number of my colleagues who have referred to the 20th anniversary of the fall of the Berlin Wall and have called for a debate on particular aspects of that. The history of that period merits a brief examination for a simple reason, namely, the fact that the so-called shock therapy that was visited upon many of the countries that left the Soviet way of managing the economy is exactly the kind of shock therapy that is now proposed for this economy. Let us consider the measures that hit many of the former eastern European Soviet countries in the early 1990s and into the end of the previous century, such as radically reducing public expenditure and very big increases in taxation. They are exactly the kind of measures that are facing this country now.

A study of the history of that period shows the huge challenge that was posed at that stage by those measures to democracies that were struggling to get on their feet. Thank God we have a far prouder and far stronger democratic heritage and foundation in this country. However, I believe the challenges that are ahead of us, which politicians from all parties will have to confront, are going to test the fibre of our democracy in the way that those new countries were tested.

I wish to make one practical suggestion on that front, namely, that at a time when we will see wages dropping and taxes going up, the one thing the Government can do to aid people in coping is to make things cheap in this country by bringing down the cost of groceries, Government services and services that are regulated by the Government. I am struck by the fact that this afternoon we will begin debating a Bill that includes a provision on the expenditure of €240 million every year on professional fees and services. That is a sign for me that we do not recognise what can be done. I again seek a debate on what can be done to tackle the high cost of living because the importance of that issue will only increase in the future.