Larry Butler (Fianna Fail)

I welcome the Minister of State, Deputy Mansergh, to the House. Senator Ross was totally disrespectful to the Minister of State who has given substantial time to this House on all subjects. I thank the Minister of State for the work he is doing in the Department of Finance. I am happy he is here because he has an excellent grasp of economics and his portfolio.

This necessary budget is one of three budgets that will create confidence in Ireland at EU level and in the market place in which we borrow. Davy Stockbrokers has given the budget a good report. If we had not taken action yesterday to bring the GDP figure under control, the 11.7% rate would have increased to 17%, which would have been unsustainable for a country of Ireland's size. Those figures need to be taken into consideration.

Young people in the public service have made an investment in this country. We will have to make it up to them when things get better. They have invested their time and their wages in this country. It is important that they be looked after when things get better. Having said that, not one job has been lost in the public sector, whereas 450,000 jobs have been lost in the private sector. Most of the people to whom I speak every day have had their wages cut by between 20% and 30%. That is the reality. We owe it to those who can ill afford to pay, such as those on social welfare and the pension, to ensure they suffer the least damage. The Minister has done a good job in striking the right balance in that regard.

I would like to ask the Minister of State about an important document. In his speech yesterday, the Minister said that "Everyone has to play his or her part and I will require the banking industry to engage with Government to find innovative solutions to ease the burden for affected homeowners." Those lines are very important. The EBS and Bloxham Stockbrokers have made a number of proposals. Perhaps the Minister of State will raise them with the Minister when this situation is being considered. They have suggested that home owners should be able to avail of a repayment moratorium of two years, with that period being added on to the mortgage at the end. That is important because it would give mortgage holders who are out of work time to retrain and get back into work.

It is also important for mortgages that are taken out to be supported by a system of compulsory insurance, as we used to have. I suggest there could be three-way participation, on the part of the Government, the lender and the borrower, in such a system. It would create €100 million a year on the basis of a small fee of €5 from the borrower, the lender and the Government. It is a very worthwhile proposal. We did not come up with this quite thought-out document ourselves. We ascertained whether these proposals are bankable. It is important we can bank these things. It has been suggested that if people can only afford to make payments at a certain level, equity could be taken in their house over a period of six years. If the borrower is in a better position after six years, he or she will be able to take on the full mortgage once more. The mortgage support scheme, which is costing us approximately €60 million, is not a permanent situation. We cannot continue to support that.

I suggest that some of the proposals I have made should be taken up. The introduction of the insurance policy I have advocated would help people who get into trouble and would reduce the liquidity required by banks and building societies. In other words, there would be a guarantee for the mortgage. It is very important for us to deal with this sector because 35,000 mortgages are in trouble at present. I believe this is the time to legislate in this regard, in co-operation with the banks. The banks we control have accepted the need to do everything by the book, which is fine, but we need to do this across the entire banking sector. Lenders are taking people to court. They are ignoring the regulations we have asked the banks to observe.

I have given a copy of the document to all Members of the House and to the Fianna Fáil policy committee. It is important for us to take this issue seriously. I would like the Government to provide for some protection of mortgage holders before it signs off on the budget. I suggest that three guidelines be added to the list of guidelines by which the banks are currently abiding. That would make a big difference to the whole situation. It would help to prevent further problems from arising in this sector. I do not believe we should close our eyes to these proposals. We should implement them.

I disagree with the suggestion, made by those who have dismissed some of the key aspects of the budget, that not enough is being done to stimulate job creation. The budget provides for many projects that will create jobs. Job creation will happen as the economy improves. I thank the Minister, Deputy Brian Lenihan, for providing €130 million for retrofitting, which will create an additional 5,000 jobs. I mentioned that this morning. The retrofit scheme has employed approximately 15,000 people since its inception. This will rise to 20,000 people as 5,000 additional jobs will be created. Were a multinational company or companies to announce their intention to create 5,000 jobs, money would be provided. This constitutes money well spent. It will save on energy and avoid the obligation to pay carbon tax to the European Union. It also will ensure homes are much warmer and that energy is used much more efficiently.

I will conclude by saying well done to the Minister. I believe those on low pay have been protected as well as possible. It should be noted that a supplementary payment is available to the low paid that brings up their pay to a reasonable standard and many people have not picked up on this Many people in the public sector whose pay is low also are in receipt of supplementary benefit when children or other factors are involved. Consequently, a safety net is in place for the low paid. This is an investment that the public service and all Members have made in the country we all love so much. I acknowledge the difficulties involved and thank everyone who has been able to support the budget. I believe the correct decision is being taken.