Larry Butler (Independent)

I concur with the comments of Senator Donohoe regarding media comment and the way in which we are portrayed abroad. It is important the proper message is sent from these Houses that the budget represents taking responsibility for our imprudent past spending. The budget today represents a correction to ensure the message goes out loud and clear to the markets, the EU and the IMF, the organisations currently funding our situation for the coming three years. It is vital we do this and put down this marker.

I realise every household and family in the country will suffer greatly because of various decisions we have had to make in the budget and we should not minimise or understate the importance of this. In future when times become good again we must be more prudent than we have been. Having said this, many good things took place during the ten or 12 years of the Celtic tiger. People have indicated that there are better roads and water systems. We have upgraded our rail systems, including the Luas system. There have been improvements in education and sports. Although the health system could be improved, many great achievements have been made in the health services, including breakthroughs to help people suffering from cancer and various other diseases. These are all pluses and we should not undersell or underestimate the value to our economy in this regard.

It is important to bear in mind that the EU has a responsibility to all members in the community. As one such member of the community I believe the EU paid a major part in ensuring cheap money was sent into this economy. This is a danger from which we have suffered within the EU. Now the EU does not wish to take responsibility for this. This represents a failure in the system as well as our own failure to recognise the problem. It is important to correct this. There was a suggestion that a new bond system in the EU would be considered. The paymaster of the EU, the German economy, has decided it does not favour this idea. It is important we reflect on how we can fund ourselves in future and the budget is the first step on the ladder, regrettable though it is and that it will affect every family in the country. Everyone who works will pay something in this budget and this is where fairness comes into it.

Some elements of the budget may help us to lift the property situation which is effectively non-existent.

The reduction in stamp duty will help restore some sort of reasonable sales to the property market.

It is important to remember that in the 1980s we paid 35 p in the punt on our debt abroad while it will only cost 22 cent in each euro now. These facts need to be used to put the economy into perspective. We must ensure we manage the economy much better than we did in the past. It is good if it means we have someone from the International Monetary Fund or the European Commission looking over our shoulder to ensure that happens.

It would be remiss of me not to point out that any other government would have had to have introduced exactly the same budgetary measures. The Fine Gael Party has shown a genuine consensus in this regard. Polls indicate the new government will be made up of Fine Gael and Labour, however, and the latter has a very different approach to tackling these budgetary requirements. Accordingly, there will be difficulties for both parties to join up the dots when it comes to taking hard decisions. Unless both parties come to some sort of a compromise, I cannot see how they can provide effective government. Fine Gael has also ruled out Sinn Féin as government partners. According to the polls, Labour and Sinn Féin could reach 39% of the national vote. What would happen then in the election of a new Taoiseach?

This budget is an important step in tackling our economic problems. I am glad we have ensured the old age pension and those at the lowest end of the ladder are protected, an important part of any budget. This is where fairness comes into this budget. A low inflation rate will also help ease the other reductions. Albeit unwelcome, those reductions are necessary to balance our spending costs and send the correct message to our European partners and international markets.