David Cullinane (Sinn Fein)

I welcome the Minister of State and congratulate him on his elevation to his new position.

I am always happy to clear up any confusion for the Labour Party in respect of Sinn Féin's proposals. Mention was made of our proposals on pensions. We make no apology for wanting to standardise pension reliefs, which would mean that high earners would enjoy the same percentage of relief as low and middle income families and individuals. The money saved would negate the need to take money away from the pension schemes of the families we already know are struggling.

It is important to consider where we are in the economy and the position on jobs. The unemployment figure now stands at 443,400 or 14.8%, up 1.6% on last year's figure. The rate of inflation in May was up 2.7% on the figure for the previous month. Retail sales were down 3.9% in April on the figure for the previous year, which indicates people are not spending because of the austerity measures taken last year and the previous year. Some 80,000 families are in mortgage distress. The deficit this year will be €18.2 billion. New Government debt is €24 billion and the total debt will be €141 billion by the end of the year. The cost of the bailout is €70 billion, on which the interest will be €5 billion this year. It is sobering that some €5 billion will be spent on interest repayments in bailing out the banks. There is €3.1 billion of unguaranteed bonds in Anglo Irish Bank. Before the general election, Fine Gael called for unguaranteed bondholders to be burned and the money to be used to stimulate the economy to ensure the money was used in the interests of the people rather than bailing out foreign investors and gamblers.

The Government made great play of the jobs initiative and stated it would be revenue neutral. However, many argue that it will also be jobs neutral. They are struggling to see where the jobs will be created. Senator Martin Conway suggested it might be a drop in the ocean. Looking at the potential for job creation, it will take us almost 1,000 years to get anywhere near where we need to be in getting the 440,000 people unemployed back to work.

The pension levy proposed in the Bill is just one example of the daftness of the Government's proposals. Some pension schemes are insolvent, while others have been devastated. We are aware that thousands of Waterford Crystal workers lost almost all of their pensions. Many pension schemes have taken a heavy hit because of the international markets, yet the proposal is to return to the people mentioned and take more money from their pension funds. That is unfair.

Before the general election, Fine Gael and the Labour Party were very clear that they wished to abolish the travel tax completely. Now it will be at the discretion of the Minister and is only a short-term proposal. This is a row-back.

I welcome the proposed reduction in VAT at the lower rate, but the increase in the top rate, 23%, will negate what will happen at the lower rate.

Senator Kathryn Reilly spoke about some of the proposals brought forward by Sinn Féin. We want a €7 billion jobs stimulus plan over a period of three years and suggest the money should come from the National Pensions Reserve Fund. Rather than bailing out the banks and putting more money into toxic banks, the money should be used to stimulate the economy. Similar proposals were made by the Fine Gael when in opposition. Before the general election it promised the creation of 100,000 jobs. The Labour Party promised to take €2 billion from the National Pensions Reserve Fund and to set up a national strategic investment bank. None of this has materialised. We must take drastic action and start making the hard decisions.

I agree with David McWilliams - Senators may laugh - that the real tragedy is that the promises these parties made during the general election are not being lived up to. The Government is simply following the agenda of its predecessor. David McWilliams said recently that the bigger parties and the parties in government were afraid to make the radical decisions needed. They are afraid to make the big decisions. Unfortunately, it is Frankfurt's way, the IMF's way and the ECB's way, but that is not the way to secure genuine economic recovery. If we continue with the policies being put in place, we will see more people leaving the country, more people losing their jobs and the economy contracting even more. That is where this Government will lead us unless it changes track very quickly.