Joe O'Toole (Independent)

It is interesting to note what has come to light in the past 24 hours. On top of everything we know, apparently developers are paying 20% tax on the vast gains and windfalls made through land speculation in the past seven, eight or nine years. Add to that the myriad tax breaks, capital gains tax write offs and other supports available and it is interesting to note what benchmarking was worth, that is, some 7.5%, to members of this House and various people throughout the public sector. This is small beer by comparison.

It is worthwhile reminding ourselves that no deal has been announced. Senator Twomey's remarks are quite right in the sense of the need to call for clarity but I do not understand why serious politicians are talking about a fudge. There has been no agreement and we are dealing with press leaks and no more than that. Deputy Richard Bruton was exactly right this morning when he said the deal must get the money for the Government. There is no point in working on press statements which state the deal is only worth €800 million or that it is not worth €1 billion. The talks must deliver the €1 billion plus savings they set out to achieve. That is the clear condition.

I wish people would take on board that the real prize is public sector reform. This deal must show the way, not only how to get from here to the end of next year, but how we introduce a transformation of the public sector. I appeal to the Taoiseach in this regard. I have no problem supporting what Fine Gael has called for and I believe it would be very helpful if the Minister would do what was asked. However, the Government must grasp the nettle. The transformation of the public sector will be more of a problem for Members of this House, Members of the other House and senior civil servants than for the trade unions. The trade unions will buy into it but I am unsure if the political courage exists to make it work.

I can provide chapter and verse on this matter. Year after year, I negotiated a staffing schedule for primary schools but year after year I have listened to people on both sides of both Houses who have tried to break that and who have sought a special deal for their school. We have now decided there will be 15,000 fewer people in the public sector from here on. That process begins today and it means there will be a reduction in outputs and a reduction in the number of people working in the constituencies and towns of every Member. Transformation must be made to work through greater productivity, flexibility and all of that but it can be done.

Yesterday, I received phone calls as well, mostly from disappointed public sector workers who face another cut in their wages. However, I also heard from people who explained that wards were shut in their hospital and that this was done supposedly to save money but that there are consultants and others standing by who are getting paid but who have nothing to do. This is the nonsense with which we must deal.

It is crucial that we must put in place change. Part of the deal must involve the establishment of an outside group, whether a commission or whatever, which will put in place, drive and make work public sector transformation. This is the best chance we have ever had to do so. The ball is at our feet. The problem will not be on the trade union side. However, there will be a problem with Secretaries General protecting their fiefdoms throughout the country. The problem will be with politicians also who are yellow livered and react to every phone call without making a stand.

This is something we can all do together but there is no easy way to do it.