Larry Butler (Independent)

I agree with much of what Senator Twomey said. We must be more open and should set out the budget parameters well before the budget. These parameters should be discussed very openly in the Lower House and certainly teased out to a much greater extent in this House. This House now has a great opportunity to do so before the budget. I welcome the growing consensus that we must meet our 3% target by 2012 or 2013. The longer we delay, the more it will cost us.

Senator Twomey pointed out the actual cost of paying back on promissory notes, approximately €1.5 billion. That is a very substantial sum to be removed from the economy every year. Therefore, those who suggest we can spread the payments over a further three or four years are only fooling themselves and the people. They are dragging the economy down further. We must tackle the whole budgetary system in regard to what we are borrowing. While the banking crisis is causing a major problem for us, it is not the only problem. The major problem is that we are borrowing more than we are taking in taxes. The sooner we operate within acceptable budgetary parameters, the better.

It is important to bear in mind that we have saved our banking system from collapse. The Government has done so on behalf of the people. However, it is now time to consider mortgage holders who have a major problem. Some 300,000 mortgage holders paid more than they should have done for houses. Of course they are responsible themselves in that they did make a purchase. The banks also have a responsibility but the people are the taxpayers who bailed out the banks. Therefore, we should have a system in place whereby the banks would take an equity stake of at least 20% to 25% in the mortgage holders' houses that are in negative equity at present. This would reduce the mortgage repayments of the householder. It would ensure that the householder would not be put out of his or her house. We must introduce a system to assist mortgage holders because they are the taxpayers who are supporting the banking system. Without a banking system, we would not have an economy. It is disingenuous for anybody to say we had a choice other than to support our banking system.

It is important to have a stimulus to create more jobs in the economy. One of the best stimuli we have is the insulation retrofit programme, which now employs over 6,000 people. We are saying the programme could be rolled out over ten years but I would like to see it rolled out over five years. This would allow us to double the number employed in the programme, bringing the total to 12,000. To create this number of jobs by other means, one would have to attract four or five multinational companies, which one might not get. My proposal, which would result in more energy-efficient houses, would not only help with our balance of payments but would cut down on the amount of foreign oil and gas required to be imported. This should be option number one in the budget.

Before the introduction of the euro, some 70% of our pension funds were invested in Ireland. This figure is now approximately 25%. An important step the Government should take would involve asking fund managers to invest more in Irish funds. The Danes provide a good example of this. Some 80% of the Italian debt market is home invested and this is forming a great cushion for them. The Spanish have started to invest more in bonds in their pension funds. These are the sorts of initiatives we need to consider.

The 39-hour week is far too short. It should be a 44-hour week. This could be achieved by adding an hour to each day of the five-day week. That would result in much greater productivity. It is vital to have productivity in every sector, both private or public. These are a few of my ideas. It is important to bear in mind that Mr. David Beers of Standard & Poor's stated recently Ireland would be one of the first economies in Europe to achieve a turnaround, and that its turnaround will be much quicker than those of the bigger economies. That was encouraging. Miss Gillian Edgeworth, economist with the Italian bank UniCredit, said the Irish economy had turned the corner although it was still in quite a fragile state.

There is confidence but it is up to us to help ourselves. I know we can do so because we are a resilient people. We can do this much better than most believe we can. We have confidence in ourselves, we have young, well-educated people and we have ideas. If we go to work and put our shoulders to the wheel, we can succeed.

I am very much encouraged by the Opposition's approach to the next four budgets, which will be crucial. We should not forget that the Opposition will probably be in power by the time the four budgets are completed. My party, if in opposition, will also be responsible.