Fiona O'Malley (Progressive Democrats)

It is not good enough because the people need to know. The Senator will regret having made that point and his party will regret conducting itself in that way. The country needs to hear it from all of its political leaders, not just from the Government exclusively. It needs to hear how we can together and realistically solve the country's problems.

I was very encouraged when I heard the Minister of State's contribution because it marked out exactly what we needed to do. In many ways, we all know what we need to do; it is a question of how we go about it. I hope that next week the Minister for Finance will have the courage shown by the Minister of State and make the necessary difficult adjustments. The one consistent lesson to be learned from previous economic downturns is to ensure we do not repeat the mistakes of the past and fail to grasp the nettle and make the required adjustments quickly enough.

We all know that next week's budget will be painful. We have all learned to live at a certain standard but we no longer have the money to finance it. The Minister for Finance made a point during the debate on the NAMA legislation which was overlooked; he said everyone was rightly concerned about the liabilities of €54 billion which might be produced with NAMA. However, nobody seemed to be looking at the deficit of €20 billion year on year which being incurred. That is what the Minister has to sort out. A total of €500 million a week is needed to finance it. This means that every one of us will have to feel the pain, which does not give anyone any pleasure. However, we need to be realistic and should not pretend there is another way.

Like other Members, I have attended briefings by various interest and representative groups which have asked that their sector not be touched. They all have legitimate reasons for asking for this. There was a time when we had money to give to everyone. It reminds me slightly of the 1977 budget, when everybody got a bit of everything and there was nothing left for the farmers, although we were already giving them everything possible. In recent times there was money available for everybody. However, time and again after the Budget Statement people asked why an allocation was not bigger. That was the cry. Ministers were encouraged to spend money because it was available, particularly on the old age pension, and the Government was determined to bring it up to a high standard. That was then but, unfortunately, this is now. We can no longer afford increases and cutbacks must be made. I am glad the old age pension is not likely to be touched and I hope that is the case. Life is difficult for elderly people on a fixed income because that is their lot whereas unemployment assistance claimants have the capacity through training schemes and so on to return to the workforce and not to remain on social welfare for the rest of their days. It is desirable to protect fixed incomes for the elderly, as they have given their lives to the State.

Last weekend I read the papers published by the MacGill school in 2007 about what was next for the economy. People of every political persuasion did not spot the problems and it is worth reading these papers because no politician saw what was coming. Parties were trying to outdo each other with generosity. I accept Senator Donohoe's criticism that the parties responsible for getting us out of the current predicament must take responsibility for getting us into it. However, the Government parties have not shunned responsibility for where we are, although that does not make the next task of solving these problems and having the courage to make adjustments easier nor does it make it more palatable for our citizens to have to face up to and accept the impending cuts. The Government will not take pleasure from the cuts that will be announced next week but I hope it will continue to discuss them with the public. The last thing a Government can do is to continue cutting public services without communicating its message clearly as to why they are being cut and for how long.

I am also worried that people are focused on the upcoming budget whereas it will only be one of three tough budgets. However difficult this year's budget will be, next year's will be equally difficult and the Government will have to seek the same amount in savings. That is why realism needs to come into play because it is not the case that if we all hold tight, this will be as bad as it gets. It will probably be much worse next year, although there are positive signs such as price reductions and increased exports. We need to be careful about that because, as Senator Donohoe said, the only way to revive the economy and to create jobs is to restore competitiveness. That means reducing costs, in particular labour and energy costs. While energy costs have reduced, they have a long way to go. We need to focus on restoring competitiveness. We cannot lose sight of the fact that we have a youthful, highly skilled and highly educated workforce and it must be ensured the unemployed can enhance their skills in order to be prepared for the upturn when it comes.

Senator Quinn has raised the issue on two or three occasions of the rate of pay for workers in the South compared with their compatriots in the North in equivalent jobs. That speaks volumes about the bind we are in. I hope a strategy will be devised to get us out of the difficulties we face but we all need to be responsible and that is why the Opposition parties, and not just the Government parties, also need to be disciplined for their own credibility. We all should be realistic about what can be achieved for the country in the future.