Paul Coghlan (Fine Gael)

I welcome the Minister of State, Deputy Finneran. As acknowledged on all sides of the House, we have never been at such a crossroads in our political and economic history. We have only managed to have a cursory look at the plan and while there are many aspects of which we are critical - no doubt, some speakers have been and more will follow me who perhaps will be even more critical - but we wish it well. We do not wish to knock it, despite our valid criticisms.

No one wishes to cut anyone's standard of living, salary or wage, but we also realise that we must cut our cloth according to our measure. The State has a deficit of €18.5 billion between what it receives in tax receipts and what it pays out in running the services provided. Clearly, that is not sustainable. On page 91 of the plan the Government admits the error of its ways in regard to the unsustainability of the income tax base. Reference is made to the base broadening measures now required as a result. The situation we have allowed to develop is serious and must be corrected. We may have different ways of broadening the base and closing the gap. That is natural. However, we subscribe to the figure of €15 billion and the plan to reduce the general Government deficit to 3% by 2014. We only argue about the detail. The devil is often, if not always, in the detail. We subscribe to the need to restore order to the public finances. We want to provide for extra growth and the creation of employment in the recovery process. It is proposed that the economy will grow by 2.75% on average between 2011 and 2014. I would like to know a little of the detail on which that estimation is based. Perhaps the Minister of State might refer to this. It must be based on projections from some source. We would also like to know more about the reforms the Government will implement to accelerate growth in certain key areas.

I support what Senator Mooney said about tourism and our iconic tourist attractions. While he did not refer to the travel tax, I welcome the hint that perhaps the Minister might be prepared to drop it as it is not bringing in sufficient revenue. The Minister has put it up to the airline operators to show how they would bring in extra numbers of tourists if it was removed. That approach must be pursued. We heard the chairman of Fáilte Ireland speak on the matter on radio this morning. Those of us who come from prime tourism areas know how much the tax has hindered and obstructed us in the achievement of our goals. I invite the Minister of State to say more on the subject also. I agree with the goal in that regard.

The Minister of State recently visited my part of the country and is aware of our iconic attractions. I will mention just two - Muckross House and Killarney House which is a wonderful attraction. Lord Castlerosse and members of the Kenmare family lived there between 1913 and 1953, but the house is now being allowed to fall into rack and ruin. Sadly, while there is limited expenditure to strengthen the foundations, much more could be done to preserve this wonderful and historic house that is part of our heritage in the south west. It is situated both in the town of Killarney and the national park.

The €85 billion package has often been referred to as a bailout, but it is not a dig-out in the sense that we properly understand these terms. It has not been totally finalised. The Minister of State might comment further on this. We would like to know whether the loan or, as I heard it described earlier today, an overdraft facility will have to be drawn down in its entirety. We hope that will not be the case. I would like to know if there is an outline of how much of it is intended for the provision of Government services, the ongoing running of the various Departments and how much - I presume by far the larger part - is for our banks which are in such difficulty. We have been hearing on a daily basis about the continuous withdrawal of large-scale deposits - €12 billion since June - and despite all the assurances and the guarantee in place, some people have shifted their money from banks to elsewhere. What proportion is earmarked for the banks? That may change because moving from a 7% or 8% tier one capital requirement to 12% will result in a huge imposition. We wish to know, therefore, the rate at which the facility will be made available. We have heard much from the Government to the effect that this will be a back-stop and the firepower to settle and calm matters which we all desire so much but which sadly is not happening. I would like to hear more about this aspect of the €85 billion being given to us, which amount may not be exact.

The Leader is aware that I have often referred to the frightful mistakes made with the banks. I did not disagree with the giving of the guarantee because it was absolutely necessary. However, mistakes were made with Anglo Irish Bank. Allied Irish Banks and Bank of Ireland are the two institutions of most systemic importance, with branches in practically every town. They were providing the lifeblood of business. However, we know how tight things have become and how difficult it is to have an overdraft or loan facility sanctioned. Even if one had such a facility beforehand, cuts are being imposed when the matter comes up for review. Life is difficult, but, as a country, we cannot live or trade without a functioning banking system. Despite our criticisms, we should plan well.

We have been told that we will move towards 99.9% ownership of Allied Irish Banks, which is probably true. I am sure it is the Government's intention to keep the stock market listing to give hope to the small shareholders who have lost so much. In the past day or two the frightful news has been that we will move from a figure of 36% or 38% to 78% or 80% ownership of Bank of Ireland. That would represent a significant jump in State involvement. With what moral authority did the Minister and the Department allow the clowns at the top of these banks - I am not referring to genuine branch workers - who sanctioned the sizable exposure in the property sector during the years and who have contributed to the mess we are in to stay on? I hope the Government takes a firm hand and removes those at board or senior management level who do not deserve to be there.