Liam Twomey (Fine Gael)

We have ploughed up the pitch. The only way any plan for the future will work is if we can improve growth, create jobs and increase competitiveness across all sectors of the economy. The IMF has acknowledged that great work is being done by the private sector and some sections of the public sector to improve competitiveness and the ability to grow in the future which, in turn, will lead to more jobs. Fine Gael's political plans are set out in the NewERA and Reinventing Government documents which focused on creating jobs and competitiveness and on transparency and accountability in all sections of society because that is what will make the difference.

Our Fianna Fáil colleagues should acknowledge that after a decade of economic stupidity on their part, it is time to return to that old mantra: "It's the economy, stupid." I do not believe they should be critical of Deputy Rabbitte or Deputy Burton in regard to comments they may have made in the media because, regrettably, their comments cannot do any harm. We are now tied to the IMF. The terms of the IMF funding are quite stringent and will have a huge impact on what will happen in this country over the next couple of years.

If anything, the Minister of State, Deputy Kelleher, should acknowledge the incredible stupidity of Ministers saying repeatedly that we had enough money until next June. What was the Government going to do after next June? The reason Ministers kept saying we had enough money until next June was that they did not intend being in government after next June and did not care what happened to the country. That puts them in the position of putting this country's sovereignty at risk and of making matters worse. There is no acknowledgement of that.

The arrogant way this Administration treated the people is the reason it will get a hammering at the next general election. It has no regard for the views of the people and where they find themselves. In the process of trying to save their own skins, Ministers have robbed every State piggy bank on which they could get their hands. The PRSI fund, which had €3.5 billion in it a few years ago, is now practically dry. They have used the National Pensions Reserve Fund as part of the bailout. They have squandered any taxpayers' money on which they could get their hands or any funds which have been built up over the years to save their own sorry hides. That is a concern of people.

Members of the Government parties should not talk as if this issue is limited to what is going on currently. The biggest crisis facing a large number of Irish people currently is personal debt, not the Fianna Fáil-IMF bailout fund. Figures show personal debt is very large and has increased over recent years. They give the Minister of State an idea of the previous and current positions. The following figures describe household debt versus disposable income. In 1995 in Ireland, for every €10,000 earned people owed €4,800. By 2008, for every €10,000 earned, people were €17,600 in debt. That is the biggest increase in debt in the world I have come across. The UK also has a serious problem with personal debt, and for every €10,000 earned there people were in debt to approximately €10,600 but that has increased to close to our figure of €17,300. In France, for every €10,000 earned in 1995, people there owed €6,600 and in 2008, for every €10,000 earned they were €7,200 in debt. Spain has been thrown into a position similar to ours. In 1995, for every €10,000 earned there people had €5,900 of debt and that figure has gone to €13,000, which is still substantially less than our figure.

This is a major concern because the number of distressed mortgages has also increased dramatically over 12 months. The value of those distressed mortgages is approximately €8 billion. If people continue to lose their jobs or see a cut in their disposable income, it will hinder the ability to repay all these types of personal debts. Mortgages form the biggest personal debt but there are other types which take up a massive percentage of disposable income.

If for any reason people are unable to make repayments and lose their houses, ending up with massive debt and court cases awarding judgment against them, there is a significant consequential effect. The Government should take this into account as much research has shown that people suffering indebtedness, especially debt they cannot repay, are prone to economic and medical effects on their lives. There is also a serious concern about what is known as a benefit trap, with people who cannot make repayments or who lose their homes ending up dependent on social welfare. As long as they are on social welfare, they can feel a certain comfort and often such people find it even more difficult to get back to work or self-employment to get out of the mess. We could be entering a vicious cycle if we do not take control of these issues and the Government could end up, especially in the upcoming budget, taxing people into such a position.

Who are the people most at risk from inflation? Inflation has edged up slightly over recent months and those vulnerable to an increase include people with high energy usage - water, gas and electricity - and mortgages. These are young families and this should be taken into account or generations of people will feel the effects of what is happening now. The consequences will affect parents, children and significant numbers of people in society.

Over the course of the next few weeks we will discuss the budget and other economic policies. The Minister of State should bear in mind that when the Government presents the budget, he should be careful to ensure it does not damage the economy any more than it has been damaged up to now. Young people and families should be protected from the changes that will come from the budget. Above all, the Government must acknowledge its responsibility in creating what is an unbelievable crisis in the economy.