John Paul Phelan (Fine Gael)

I do not want to repeat the points made by previous speakers. Before Senator Mooney leaves the Chamber, I wish to point out that it is somewhat rich of those in Fianna Fáil to try to wash their hands of what has happened in the economy in the past two years. Like Pontius Pilate, they state they had nothing to do with what happened. They claim that external forces caused our economic downfall.

Senator O'Sullivan stated no one had predicted that this would happen. Many knew that there would be a day of reckoning. Those on the Government side knew that the boom which had kept them in power for so long would come to an end. They did not perhaps realise that it would come to such a crashing and sudden end, but they certainly knew it would happen. It is not acceptable for them to seek to abdicate responsibility for getting us into the mess in which we find ourselves.

There were two distinct phases to the Celtic tiger era. During the first five or six years of the period to which I refer there was substantial investment from overseas and a great deal of sustainable employment was created. However, the second five or six years were marked by an emphasis on property and lax lending policies on the part of the financial institutions. This was overseen by a Government which, as some of its members stated, was determined to keep the good times flowing. I recall the then Minister for Finance and current Taoiseach being questioned on the issue of rising house prices and stating that if more were built, the prices would drop. That was the Government's policy for a long period. People were bullied by the Government and the financial institutions into thinking that if they did not get on the property ladder and own a couple of houses, they were somehow missing out.

The Government profited to a huge degree from the boom in the property market. Almost 50% of the value of every home purchased went to the Government in either direct or indirect taxation. It is unacceptable, therefore, that representatives of the Government in this House should state they do not have a responsibility with regard to the situation in which we find ourselves.

As Fine Gael's spokesperson on finance in this House, I have long been a critic of social partnership. However, I am obliged to state we have never needed social partnership more than we do. However, I have a number of difficulties with the Croke Park agreement. I can understand why the union which represents lower paid civil and public servants was the first to vote against it. The people concerned were not, after all, catered for by the Government in any of its recent budgets. This was despite the fact that other parties had suggested lower paid civil and public service workers should be treated more fairly. I understand the frustration of the people concerned. I am, however, of the view that the agreement represents the best deal on offer. I have had an interesting discussion with a public servant in my area who is voting against the agreement because he is of the view that it is too good and that the country cannot afford it. While I have not encountered anyone else with that perspective, I urge other member unions in the social partnership process and of ICTU to support the agreement, not because it is a panacea or is a fantastic deal for their members but because this is a moment of national crisis and it is the best deal on offer. I hope they will be in a position to accept it.

I also pay tribute to the efforts of some leaders of the Irish Congress of Trade Unions who have gone out of their way to secure this agreement which I believe provides a sustainable future for the public sector. The agreement provides for no further wage cuts, no compulsory redundancies and, in the case of the hoped-for economic improvement, that the Government will consider increasing the pay of lower-paid public sector workers in particular, which is important. It is also important that the agreement refers to issues concerning work practices. When Deputy Bruton was excoriated by the Government for opposing benchmarking, it was promised that benchmarking would sort out such situations but it did not. It now is opportune to try to get some movement on that issue.

I also agree with Senator Buttimer and others who mentioned that many public servants may perceive voting "No" to be an opportunity to kick the Government. Such an opportunity will come at the next general election, whenever that presents itself. This particular subject has reached the point at which it is above party politics and concerns the future survival of our economy and ensuring our ability to return to economic recovery as soon as possible. At present, approximately 400,000 people are out of work and unless a mechanism can be found to ensure their return to work, our current economic difficulties never will be resolved satisfactorily.

This may also be an opportune time for the Government to consider reforming the manner in which social partnership is conducted in Ireland. There should be a greater role for the Oireachtas in the manner in which social partnership works. In addition, there are a number of groups - Senator Bradford mentioned the small and medium enterprise sector - that are not part of the social partnership arrangement but which should be included. Members from all sides of the House have consistently expressed the view that small and medium-sized enterprises will be at the core of any job creation solution that may come to pass in the next few years and they should be included in that process.

I will finish on that point. While I have some reservations and understand fully the views of lower paid public servants in particular with regard to the Croke Park agreement, given the situation in which the country finds itself at present, it is the best deal that can be achieved.