Seanad debates

Tuesday, 1 December 2009

Pre-Budget Outlook: Statements

 

12:00 pm

Photo of Labhrás Ó MurchúLabhrás Ó Murchú (Fianna Fail)

Tá áthas orm go bhfuil an díospóireacht seo ar siúl. Gach lá sa Seanad, bíonn cúpla nóiméad againn chun labhairt faoi chúrsaí eacnamaíochta. Ní chabhraíonn sin dáiríre, mar tá muid ag caint ar rud atá uileghabhálach ar fad. Bheadh sé tábhachtach go bhféadfaimís ár dtuairimí a nochtú agus féachaint an mbeadh aon chomhthuiscint eadrainn. Tá súil agam go mbeidh na tuairimí a nochtfar anocht cabhrach agus dearfach. Aontaím leis an Seanadóir deireanach go bhfuil sé tábhachtach dóchas a thabhairt do dhaoine ach níl mé cinnte an raibh dóchas le baint as an chaint a chuala muid ansin.

Each morning on the Order of Business we have one minute of glory to talk about different issues. When we start to talk about the economy, it is clear we are dealing only in sound bites. We must accept that we are dealing with an exceptionally complex issue. It is easy to talk wisely with hindsight but in years to come when we ask what was our reaction to the recession and the economic crisis here several issues will become clear. It took us a long time to get out of denial that we had a problem, possibly because the recession hit us so quickly. We were in denial that this was a global problem, which it is. When we could not accept that we were wasting time again. Then the blame game went on for a long time. The media, in the main, did not crown themselves with glory. Many will look back and say there were many missed opportunities to respond positively, and where necessary, with compassion, to this recession.

People on both sides of this House are well aware that many things happen in the background that very often cannot be made public until the appropriate time. We cannot act in isolation from Europe because we have benefited so much from the EU structures. Thanks be to God, we will have a good infrastructure when, I hope, there will be an upturn in the economy soon. Unless we retain the confidence of the European Union we will go nowhere. That must form part of every debate we hold.

Everyone here could spend ten or 15 minutes on the blame game but that will not make a positive contribution. We have had good times. The Celtic tiger was good to many. Our employment rate is exceptional by any measure. We should not forget that but we should think about how to protect those jobs and help those who have recently lost their jobs or who will never have jobs and will depend on social welfare.

I have seen a great sea-change in competitiveness in a short time. For example, one sees hotels offering bargains every day in the newspapers. They seem to have adopted the attitude that it is better to have full capacity in a hotel, and keep all the workers there than have two thirds unused and let many workers go. I can see that clearly and that hotels are competing with one another. There is a new culture. There is no doubt that we had crossed a line in pricing. It seemed as if we were pulling prices out of the air. The same could be true of other areas, for instance, the construction industry, which is experiencing a downturn. It was quite clear that from a competitive point of view we were pricing ourselves out of the market and worse still putting those excessive prices onto the shoulders of many young people.

I am not criticising hotels, the construction industry or any other sector. That was typical of the Celtic tiger era. It is important to see how people are prepared to respond to this. I am glad to say that denial is gone. The blame game has been diluted and people are focusing in a more positive way on our present situation. I will not enter into discussion with Senator Fidelma Healy-Eames because, as I said in the cúpla focail Gaeilge, we want to hear everybody's point of view. However, when one throws a word like hope around loosely but speaks in negative terms and undermines every single positive proposal brought forward one will not raise hope but do quite the opposite.

This struck me recently in respect of the flooding crisis. The Taoiseach is involved in many issues, not just the economy, yet he travelled the length and breadth of this country to identify with the people and their problems. He made himself available, travelling to every flood area but somebody picked out the small point that he did not have his wellington boots with him. That might sound funny in other times but it is not a bit funny because that kind of response to leadership shows a degree of irresponsibility.

I also salute the Minister of State with responsibility for the Office of Public Works, Deputy Mansergh, who has been at the coalface, although I know that is the wrong term for flooding. He was available to listen to the people and to bring back their views. Let us respond positively when we see people being proactive about any problem or issue. The flooding crisis is attached to the economic problem because it will involve a high cost. That will be thrown back onto the Exchequer. People responded negatively to the Government's announcement of its first €10 million measure rather than waiting to see whether it was a roll-out rescue effort, which it obviously was. Did people expect that without any assessment of the problem we would name a figure, as if that was the way to solve the flooding problem? I hope we are going to get into a new frame of mind, to think how we can all work together.

Since the day when the recession became official I have said repeatedly to many fine people on the Opposition side who hold the same views that this was one time when we should all work together, leave political point-scoring to one side and think particularly of those who are most vulnerable. I have no doubt there are anomalies in the social welfare system and that corrective measures are required but there are some people within that net who are exceptionally vulnerable and helpless to whom €3, €4 or €5 could make a serious difference. We must ensure the caring element remains within the budget. I saluted the Taoiseach when he indicated that pensions for the elderly were unlikely to be hit. At least that is how we all interpreted his remarks. It struck me straightaway that the Taoiseach was sending out a message that in spite of our drastic condition there would be a caring element in the budget. I would like to see that extended to other areas.

There is absolutely no À la carte formula for getting out of the recession. We must examine all the challenges we face, including the public sector, which is a very powerful body as we saw in the number that came out on the streets. It has made a major contribution to the development of this country and we are particularly lucky in the calibre of people we have in the public service. If, however, one has a secure job and a guaranteed pension one sleeps fairly well at night. One may have to tighten one's belt a little but in the main one can do that by being a little more careful with expenditure. The person who exists on €200 plus a week, particularly if he or she had a job or another lifestyle, has a limited chance of being animated or energised now. We must appeal to those who have jobs to think of those who do not.

We must also believe in ourselves. Throughout history we have overcome many challenges. This is not the greatest challenge we have ever faced. The mere fact that we were successful in passing the Lisbon treaty shows that we have maintained our status in Europe; therefore, we are part of a bigger structure on which we can depend. I have seen many of the statements that have come from the European Union and have no doubt that the Commission is happy with the approach we are taking.

We will only have hope if we are realistic; tell it as it is; try to be fair to everybody, especially those who are most vulnerable and are competitive. Above all else, we will only have hope if everybody regards himself or herself as part of a partnership. I would include in that partnership employers, trade unions, the media and public representatives. If we do not do this, we will not attract investors to help us to get back to a strong position. We will not succeed in holding onto confidence which we have in international markets. The foundation for all of this must be social partnership.

I heard at lunchtime that there was a possibility of substantial progress in the talks with the unions. The greatest sign of hope for the people would be the bringing back of social partnership to centre stage. We should encourage the social partners to go down that road.

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