Rónán Mullen (Independent)

Cuirim fáilte roimh an Aire Stáit. In 2008 the economy entered the worst recession in 80 years, sparked by the global credit crunch and the collapse of the domestic property bubble. The scale of the economic collapse was staggering. In 2006, at the height of the boom, the private sector was a net borrower to the tune of €10 billion. In 2009 the private sector will be a net saver of €20 billion a year, which represents a withdrawal of €30 billion from the economy annually because of lower spending on housing and consumer goods, and less capital investment by businesses. The massive withdrawal of capital contributed to a major growth in unemployment, which doubled from 5.9% in June 2008 to 11.9% in June 2009. It currently stands at 12.9%.

Government spending is running at more than €500 million a week in excess of income and the Government will need to borrow €26 billion this year to fund the differential between income and expenditure. This equates to a significant percentage of national income. While the Minister for Finance is correct to point out that the one-year extension of the budgetary deadline granted by the European Commission is welcome, we are in a serious position and I agree with him that soft pedalling the necessary adjustment in the coming year is not an option. If corrective action is not taken by 2011, the deficit will increase to 15% of GDP.

The scale of the economic challenge facing the nation is daunting. Few families have not experienced their incomes shrink or have not had a family member lose a job. These are challenging times and I do not envy the Minister for Finance his job. I wish him well, as his role is crucial in preparing the ground for an economic recovery. While I disagree with him on many issues, I acknowledge he has risen to the challenge and he is one of the few showing real leadership at a dangerous time in the history of the State. Handing out that bouquet, which will not put him up or down, highlights that one of the reasons we are faced with our current problems is bad leadership in the past. There is no point pretending this is due to international circumstances. The leadership we had was unable to say "No". Such leadership is always bad leadership. It must be acknowledged folksy communitarianism was no substitute for principles-based governance, which provides for people to be told what is excessive. A nanny who cannot say "No" will spoil a child and a government that cannot say "No" will spoil an economy. That is why there is a massive disconnect between Exchequer revenue which, as the Minister of State pointed out, is in the same range as a percentage of GDP as it was in recent years, and massively increased public spending.

It is crucial to acknowledge that everyone is not equally to blame for the current crisis and, therefore, everyone should not bear the burden equally. The most vulnerable, particularly the elderly, the disabled and the ill, need to be protected. They did not create this mess nor should they pay for the greed and stupidity of those who did. While cutbacks must be made, we must try to trim the fat of government such as public relations budgets, expenses, unnecessary travel, ill-thought out and pointless conferences and meaningless reports rather than the tangible services that make a difference to people's lives, which are the muscle that sustains the most vulnerable in our society.

If the cuts the Minister proposes are to be sustained, we need to rethink the way government works in Ireland. For too long the solution to every problem the Government experienced was to throw new organisations and money at it. I am reminded of the overly indulgent nanny of recent years. Invariably, a quango was set up to deal with every problem and the number of Departments, agencies, quangos and regulators is in excess of 600. Government was one of the fastest growing industries in Ireland and that was neither healthy nor sustainable. One could say that one of the fastest growing industries in Ireland has been Government and that was never healthy or sustainable.

Ní ionann gach duine nuair atá muid ag leagan an mhilleáin maidir leis an ghéarchéim eacnamaíoch seo. Níor chóir go leagfaí an milleán céanna agus an t-ualach céanna ar gach duine. Na daoine is mó atá ag fulaingt ná na daoine is sine. Tá áthas orm le cloisteáil nach mbeidh laghdú sa phinsean. Tá daoine ag fulaingt ó mháchail éigin agus na heasláin inár dtír agus ba chóir cosaint a thabhairt dóibh mar ní iad is cúis leis an ghéarchéim seo agus ní cheart dóibh íoc as saint agus as aineolas na ndaoine is cúis.

Is gá ciorruithe a dhéanamh ach ba chóir díriú isteach ar na buiséid chaidrimh phoiblí, costais nach bhfuil aon chiall leo - taisteal thar lear ag polaiteoirí a théann thar fóir agus nach ndéanann aon mhaitheas don tír, comhdháileanna nach bhfuil ciall ag baint leo agus tuairiscí nach bhfuil bunús acu. Ansin is cóir na ciorruithe a dhéanamh ar dtús, cé nach bhfuil mé a rá gur leor sin chun teacht cóngarach le €4 billiún.

Tá an ceart againn. Tá gá na ciorruithe móra a dhéanamh agus ag an am céanna caithfimid na seirbhísí is mó a chuirtear ar fáil do na daoine is sine agus na heasláin agus iad atá faoi mhíchumas éigin a chosaint. Sin an chéad rogha is cóir dúinn a dhéanamh. Caithfimid díriú isteach ar an gcaoi ina bhfuil an Rialtas ag feidhmiú. Le fada anois, nuair a bhí aon fhadhb sa tír, cruthaíodh eagraíocht nua éigin agus caitheadh airgead isteach inti. Tá níos mó ná 600 quangos anois. An tionscal is mó a bhí ag fás in Éirinn le blianta anuas ná an Rialtas é féin agus ní raibh sin ceart ná folláin.

We need to go back to the drawing board and redesign Government in order that the money Government collects and spends gets to the people who need it and not to an ever-growing and not necessarily very effective bureaucracy. Improvements on procurement, the more widespread adoption of shared services, better IT management, the increased use of virtualisation and electronic payments could all contribute to lower costs and increased efficiencies. There is also a need for fundamental redesign of process used by Government and the structures and work practices used in Government.

Reform cannot take place without the co-operation of public sector workers. There are those who would set public and private sector workers at each others' throats but the reality is that many families are the product of mixed marriages between public and private sector employees. Ireland is too small for factional interests to triumph. In the words of Benjamin Franklin, with which we are all familiar, "we must, indeed, all hang together, or assuredly we shall all hang separately". The Minister is not only responsible for managing the fiscal crises but also has crucial responsibility for public sector reform. Once the budgetary process is over, I urge the Minister to turn his considerable talents to driving public sector reform in Ireland and providing the same leadership there as he demonstrated in addressing the financial sector crises and the fiscal crises.

I wish to address some remarks on the topic of education. Education is not a cost for Government; it is the single most important investment we can make in the future of the nation. The human talent we possess is the most important asset and our education system is the single most important item of critical infrastructure. No sector can be immune from cutbacks but the education sector is one where it is far better to use a scalpel than a slash hook. In making cuts I urge the Minister to look at back office operations and quangos of dubious benefit rather than frontline services. To be blunt, good teachers perform one of the most valuable tasks in society and deserve to be paid fairly for their work. I have no doubt if one asked Members how they got here in the first place they would eventually mention a teacher who inspired them many years ago. In recent months teachers have been all but vilified as though they created this current mess rather than the greed and stupidity of bankers, developers, crony capitalists, and corrupt politicians not to mention regulators who drew fat salaries but were asleep at the wheel. Teaching is an honourable and worthwhile profession whose contribution has never been properly recognised. If we develop a smart economy in Ireland it will be due in no small part to the work of Irish teachers who have consistently given far more than they were paid to do.

We need much more than a smart economy; we need a wisdom society. That is why I put the emphasis on education. Earlier today I pointed out that voluntary schools, of which I am a trustee of over 100, receive €200 less per student than VEC schools and €90 less per student than community schools. That is not equitable. Some schools are at their wits' end as they face water charges and the moratorium on posts of responsibility means that in some cases six out of eight school head posts are unfilled. The key pastoral role played by year heads is not available to students. How can we talk about cherishing children of the nation equally and safeguarding the welfare of our future society if we are not putting young people first?