Joe O'Toole (Independent)

Regarding the budgetary figures as they emerged yesterday, it looked good to see all the different party groups going in and going through the issues with the Department of Finance and coming out with a clear message. There is also a need for us to give a further message, that we have been in this place previously - in the 1980s when the national figures were equally bad. It is important we recognise that, whether under this Government or the next Government, we can work our way out of it.

I do not believe we can get back to a 3% deficit by 2014, but we need to take the hard measures early on. The current budget should be front loaded for the simple reason of giving confidence and certainty to those who can spend money but who are afraid to do so. We need to be able to state after the forthcoming budget that it was the worst of the budgets to come. People are saving more than ever and the savings ratio is higher than at any time in the history of the State. Many pensioners and public servants have money but need assurance if they are to spend it, keep the economy going and improve consumer confidence. This can only be done by introducing a front-loaded budget. People will then know the worst is over and subsequent budgets, while bad, will not be as bad as this one. In this regard, I applaud a report over the weekend on the Fine Gael Party's view on public sector reform and its attitude to the Croke Park agreement, which it states it wants to work. It is important that everyone sees there is consensus on this matter.

To respond to issues raised by a number of individuals, including Senator Harris, as I have consistently stated, public sector reform is necessary. However, one should not forget that the reform process commenced 18 months ago when the talks that delivered the Croke Park agreement began. A moratorium on recruitment, the pension levy and salary cuts were introduced and accepted, however reluctantly. The reduction in public servants' salaries is delivering savings of €1 billion per annum, the pension levy is delivering savings of €800 million per annum and the savings arising from jobs not being filled since the introduction of the moratorium amount to €500 million per annum. Combined, these measures have produced savings of almost €2.5 billion or three times the annual cost of the benchmarking process, an issue which has repeatedly been raised. Public sector workers, as opposed to the public sector per se, have taken a reduction that delivers annual savings of €2.5 billion. It is equally important to remember that, notwithstanding the reduction in public service numbers, work on public sector reform is still being done, although more needs to be done. It is for this reason that the Croke Park agreement needs to be pushed forward.

The Tánaiste made an incorrect statement in the other House last week when she indicated that the plans from the various Departments would not be published. I checked this morning with the Department of Finance and the plans will be published. The performance indicators will be available and Senators will be able to monitor improvements.