John Gerard Hanafin (Fianna Fail)

With permission, I will share the time remaining with Senator Larry Butler. In supporting the emergency measures in the public interest, the important words are "in the public interest". There has been a very large shortfall in the amount of taxation. Money is not being spent in the country because people are fearful. Some of that fear was deliberately stoked and other factors were at work to deliberately play down the economy. The media has a case to answer in this regard.

The Government has had to raise funds and the best way of raising funds is to ensure equity. Retired public servants with very generous pensions which are secure and index linked now find that for the past two years there has been an 8% decrease in the cost of living. This is a net increase of 8% because one can buy 8% more with one's money. I am certain many retired public officials wish to share in and do their bit for a fair and equitable system to ensure the country's finances are put back in order. This is one way of doing so. I acknowledge that many of these people have repaid their mortgages at this stage and are in receipt of a very significant and generous pension of one and a half times their gross salary at a favourable tax rate. The State is asking for a reasonable contribution at a difficult time. Whereas people are not spending money, I am certain they will once they see this financial measure will ensure stability and continuity in our finances and a rate of growth to bring us out of the current difficulties. These measures, along with the reductions in the pay of the Taoiseach, Tánaiste and Ministers, also show that this Government is committed to fairness. I commend this Bill to the House.