Seanad debates

Wednesday, 8 December 2010

Budget Statement 2011: Statements

 

2:00 pm

Photo of Ivor CallelyIvor Callely (Independent)

I welcome the Minister of State, Deputy Mansergh. We should consider the implications of budget 2011 in the context of what the Government has done in recent months to sort out the country's problems. It has set out its stall by directing and restructuring policies and services to boost confidence. For the first time in the country's history, the budget was approached on the basis that it formed part of a multi-annual process, as set out in the National Recovery Plan 2011-2014. That is the correct procedure to adopt and I hope it will be set in stone for years to come.

The policies pursued in the last two years by the Fianna Fáil-led Administration, with the four year plan, the joint EU-ECB-IMF programme of assistance and the financial measures in budget 2011, are all targeted at getting the country back on its feet. We have all heard the announcements by a host of commentators, not just in the last 24 hours but in the past two or three years, on the state of the economy. These commentaries have focused on unemployment, our financial difficulties and the banking crisis. We have heard that a variety of adjustments are necessary to ensure correction. In certain instances, there has been detailed analysis of isolated aspects, but there has been a great deal of fragmented thinking and a fuelling of destructive propaganda.

There is no doubt we are at a critical point in the country's history, but we are not alone in facing this challenge. We must take account of the position in the world around us. The sad, sober and grim reality is that we are going through an exceptionally difficult period. All of the elements of the global economic and financial difficulties are present in the domestic economy and, in certain instances, are more intense.

It has been said a rising tide lifts all boats. Equally, however, one assumes an ebb tide lowers all boats. We are in uncharted waters, with unprecedented internal and external factors having an impact on our course. At times such as these, if I were asked whom I would like to see captaining the ship, I would prefer to have an experienced captain who knows all about the impact external forces can have. The National Recovery Plan 2011-2014 demonstrates that we have a Government with knowledge and expertise. Budget 2011 is an addendum to that plan. We must examine the macro picture. In launching the four year plan the Government indicated that it was only part of a process, that the budgetary aspects would form another. We have seen the first instalment in budget 2011.

The question at issue is whether the Government is taking the correct measures or whether somebody else could do better. Allowing for the impact of external forces, the Government was not content to let the downward spiral continue. It could have taken the easy option of engaging in window-dressing with a general election looming. Instead it took the appropriate measures - albeit tough ones - in the national interest.

Given everything that has been said, I am seriously concerned about the message emanating from the media and my colleagues in the Oireachtas. We all need to display a positive attitude. There is no doubt that a renewed effort is required, with a strengthening of our national will and an ability to succeed in tackling the challenges facing us. We are a great people with tremendous determination and resilience. Budget 2011, the national recovery plan and the EU-ECB-IMF joint assistance programme present a clear framework to which we can all work. It is a welcome framework that allows us to take the necessary corrective action. In two or three years we may come back and say we should have tweaked it one way or another. It is easy to do that in retrospect. The policies of this Government over the past two years, the work in the national recovery plan and the joint assistance programme are all targeted in the same direction. That shows there are people with knowledge and experience who know the direction in which this country should be headed. The figures add up, the equation works out and the equation was not considered solely on the basis of party politics or the Government.

I do not have the time or information to go into the full details of the budget, nor am I qualified. I agree with the Minister for Finance and the Government when they say that the issue is jobs. I congratulate the Government on what it has done on exports and other aspects, including the falling number of people signing on for unemployment benefit. This points in a positive direction.

We can do other things that cost little money and I ask the Minister of State, Deputy Mansergh, to take one aspect back to his Government colleagues. Recognising the importance of jobs in exports, we should listen to small and medium-sized enterprises. We should work with them closely over a short period to identify the issues that must be addressed because they have their finger on the pulse. Issues are causing impediments to small and medium-sized enterprises. If the Department of Enterprise, Trade and Innovation had an e-mail system with an accident and emergency assistance line to hear what businesses want the Government to do to assist them in creating jobs and products, it would be greatly beneficial. I regret I do not have sufficient time but I will take the issue up with the Minister of State directly.

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