Ceann Comhairle I am here today to speak on behalf of the Government and oppose this Private Members Motion of no confidence in the Government.
The opposition talk about the economic crisis that this country is undergoing as if we facing this alone. The truth is that the world is undergoing the worst economic crisis since 1930s. Despite what members of the opposition believe, this economic crisis is not unique to Ireland. The U.S., Japan, E.U. and many other countries and regions are in unprecedented recessions. Britain’s budget deficit is its worst since World War 2. Just last month UK Chancellor Alistair Darling said that it will take eight years to reduce their deficit by 6.5% of GDP. Likewise the White House has just revised their budget deficit predications by $89 billion meaning that this year their deficit is expected to reach $1.84 trillion- a truly unimaginable figure.. In this country we face a deficit of almost €21 billion which is unsustainable. We have introduced a very tough budget which set out to bridge this gap. It balances tax increases, spending cuts, and borrowing. Neither Fine Gael nor Labour have presented viable solutions to the crisis. Fine Gael has proposed €2.4 billion in cuts that would have a drastic effect on services and Labour seem to be proposing that we just go on borrowing.
No one predicated this economic tsunami. In 2007 Fine Gael and Labour joint spending plans predicted average annual growth rates of 4.2% between 2008 and 2012. They criticised us at the time for being too conservative and called for increased expenditure on health and education.
The reality is in more prosperous times huge strides were made in this country. We invested in our people, our services and our infrastructure. We invested in over 3,500 extra gardai , 11,000 more nurses and doctors, and 7,000 extra teachers in our schools. We dramatically increased the state pension and social welfare increases far exceeded inflation. We have invested in public transport and a motorway system.
Clearly the economic situation has changed dramatically. This Government has faced unparalled challenges. In over 25 years in the Dáil I cannot remember a time when events developed so rapidly. The reality is when circumstances change rapidly, you must respond quickly. That is what this Government has done. There are thousands of people living with the hardship of this economic recession daily, trying to support their families and trying to get by. I realise that they are disappointed and angry. However, accusations that we have no plan are simply incorrect. We have a plan and I believe we are making the right decisions to put this country back on the road to recovery.
Our plan consists of 4 parts. Firstly we must stabilise the public finances- this is what why brought in the pension levy and the supplementary budget. Secondly we need to sort out the banking system-this is why we are creating NAMA. We need to get Irish banks lending again. Finally we are working to protect and create jobs aswell as supporting those who are out of work. To date the number of FAS places has doubled to 128,000, and we have introduced new courses on Green energy technology. We are creating 7,000 third level places including an extra 1500 PLC places. We are also providing work experience training programme that graduates can access while holding onto their benefits. We are supporting small and medium sized enterprises through the creation of Enterprise Stabilisation Fund.
Our plan for economic recovery has been appreciated by expert commentators at home and abroad. In May Jean Claude Junker the Prime Minister and Finance Minister of Luxembourg said I do think that the Irish Government, with great courage and a deep sense of responsibility, are on the way to taking the right step in a very difficult situation.
John Fitzgerald of ESRI said that the Government “had got it right” in the supplementary budget and that the country was “on the right track.” The ESRI predicted that the economy could grow “quite rapidly” during the 2011 – 2015 period if international competitiveness is restored.
Peter Sutherland commented thatwe have great strengths and that the position is not quite as bad as it is being painted.
Closer to home the Governments’s approach seems to have found favour with some members of the opposition. Fine Gael Mayor Madelien Taylor Quinn recently commented that she has every confidence that Brian Cowen has the ability to do what it required to bring the nation and the country back on its feet.
Fine Gael newest member Deputy George Lee said about the creation of NAMA. It’s a good move…. It’s not something that’s going to immediately do some good but it will in the medium term do some good and it’s a clear plan.”
“Overall, it’s a budget, it holds together, it really does send the message that the government is serious about putting the public finances right and that people are taking major adjustments….this is a big message to sell internationally and that can be positive.”
