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Dáil Éireann díospóireacht -
Tuesday, 17 Jun 2003

Vol. 568 No. 5

Private Members' Business. - Public Services: Motion.

I move:

That Dáil Éireann:

– noting that this month marks the first anniversary of the election of the current Fianna Fáil/PD Government;

– deplores the failure of the Leader of Fianna Fáil, Bertie Ahern TD, and the Leader of the Progressive Democrats, Mary Harney TD, to honour the many commitments made by their parties in their manifestos and election campaigns, including, among others:

– the pledge to eliminate hospital waiting lists by May 2004;

– the promise to recruit an additional 2,000 gardaí;

– the undertaking to extend medical eligibility to bring in another 200,000 people;

– the individual and specific commitments to parents, teachers and pupils regarding urgently needed improvements to dilapidated schools;

– the assurance that funding would be provided for an additional 40,000 child care places; and

– the promise to prioritise the needs of disadvantaged sectors and communities through programmes such as CE and RAPID;

– condemns the series of cutbacks over the past 12 months in many vital public services, which have been imposed despite the written statement of the minister for Finance, Charlie McCreevy TD, on 13 May 2002, just four days before the election, that "there are no significant overruns projected and no cutbacks whatsoever are being planned secretly or otherwise";

– acknowledges the unprecedented anger among the electorate at the manner in which they were misled by the Government parties;

– calls on the Taoiseach and the Tánaiste to:

– acknowledge that the electorate has been seriously misled;

– set about honouring commitments made in regard to improved and extended public services; and

– particularly in the light of the damning report from the Institution of Engineers of Ireland highlighting serious failures with regard to the implementation of the National Development Plan, bring forward specific proposals to address the serious infrastructural deficit and undo the damage done to the social and economic fabric of society by their policies."

Deputy O'Connor is talking to the Taoiseach.

If there is any advantage in it for Tallaght, I am prepared to wait.

The Irish people are involved in a magnificent adventure this week. They are playing host to people with disabilities from around the world and, in the process, learning, experiencing and discovering. In a world of commercialism and crass exploitation, we are learning the meanings of true competition and pure and unadulterated sport, we are experiencing the ways in which people overcome barriers to demonstrate ability above and beyond the norm, we are discovering that people with disabilities are capable of courage, grace and skill that we can only envy and we are seeing what it really means to overcome. The atmosphere surrounding the Special Olympics World Summer Games has encouraged a sense of celebration and discovery. We should be grateful for the work and effort of the organisers of the games, as their commitment and dedication to the myriad of tasks they have undertaken are lessons for us all.

Against that background, one of the most shameful things about this Government has been the mean-spirited way in which it has dealt with the issue of disability. I will return to the subject later, but it is appropriate to begin this evening by pointing out that the community that has organised the events we are witnessing and reached out to people with disabilities from all over the world deserves a Government of vision and generosity. It has, instead, been foisted with this miserable Government, which was elected on the basis of lies and deceit, is interested in power for power's sake and does not possess a shred of moral authority. It is appropriate, therefore, as the House nears its summer recess a year after Fianna Fáil and the Progressive Democrats took office again, that it should debate how the Government parties have lived up to their promises and how citizens have benefited from their return to office.

I emphasise that the Government's performance must be compared with the promises made by the Government parties when seeking re-election. The Government's extensive back-up apparatus has made sustained and persistent efforts in recent weeks to suggest that its performance may be judged only against the programme for Government and not against the bogus promises which won it power. I do not mean to imply that the Government has honoured the programme for Government – far from it – but the electorate did not vote on the basis of the programme. Its decision was based on the very explicit commitments of Fianna Fáil and the Progressive Democrats at election time, some of which are listed in the motion I have moved. It is not possible to exaggerate the significance for hundreds of thousands of people of commitments such as the elimination of hospital queues by 2004, the extension of medical card eligibility to 200,000 people, the recruitment of 2,000 additional gardaí and the funding of 40,000 additional child care places. Such hard commitments were pressed on the people by Fianna Fáil and the Progressive Democrats.

When the Government started to churn out its various works of fiction in recent weeks, the Progressive Democrats Party sought to resile from any proposition that it was involved in breaking promises. Deputy Liz O'Donnell claimed that it was all the work of Fianna Fáil and said that the Progressive Democrats, as a party, tend not to make such promises. An article in The Irish Times of 5 June last dealt explicitly with the commitments made by the Progressive Democrats. I will leave this issue by mentioning that the Progressive Democrats manifesto stated that it “will increase the strength of the Garda Síochána by 2,000 members”. The Progressive Democrats, having made their share of commitments, cannot pretend that all responsibility rests with the larger Government party. There has never been an instance, in the history of the State, of political parties engaging in such a comprehensive and cynical post-election turnabout and consigning undertakings solemnly given to the political dustbin immediately after their election. A particularly central undertaking, given on behalf of the Government by the Minister for Finance, Deputy McCreevy, was that there would be no cutbacks, secret or otherwise. This was cynically advanced before polling day and contemptuously abandoned within days of the result.

The main reason why the Labour Party has put this motion before the House is because it believes it is right and appropriate that the Opposition should subject the Government to audit at the end of each year in office. This Government abhors accountability and seeks to avoid it at all costs. Its most determined campaign this year was conducted to secure the filleting of the Freedom of Information Act and its leaders' most assiduous efforts are devoted to avoiding detailed questioning in any public sphere. That includes this Chamber, sadly, in the case of both the Taoiseach and the Tánaiste.

I will not be able to refer to more than a few of this Government's depredations in the time available to me. I have had to make selections because the Government has made matters worse in the last year in almost every area of this country's economic and social life. Its only achievement is to be able to say that it has affected every walk of national life in such a short period. The tragedy is that it damages everything it touches.

The Government has shown itself to be, undoubtedly, one of the worst Ireland has ever had. In its first year in office, it has broken dozens of promises made to the electorate, attempted to distort its record in office, launched a series of savage attacks on essential elements of public spending, introduced a raft of increased and new charges and expected the most vulnerable people in society to bear the cost of its incompetent economic management. That is what this motion seeks to capture.

Many Government backbenchers fully, if privately, accept the charges and the demands contained in the Labour Party motion. Yet these Deputies will, in the end, shame themselves as democratically elected public representatives by acting as lobby fodder to support the Government amendment to the motion.

Some few on the Government benches, even office holders, have publicly in their comments and remarks, to all intents signed up for the thrust of the motion. Yet, they too will, in the end, shame themselves by also voting for the Government amendment. Among such will be Deputy Tim O'Malley of the Progressive Democrats, a Minister of State who just the other day was a loud protester at the behaviour of the Department of Education and Science, the Minister and former Minister in the case of St. Nessan's primary school in Mungret. St. Nessan's is, of course, in the Minister of State's constituency. It is a school with a complex of ancient temporary classrooms in a notorious state of disrepair. These rooms are, in his words on RTE radio, "totally unsuitable, they would not pass safety standards". He is right. I have seen this school, as it happens, having recently visited it with my colleague, Deputy Jan O'Sullivan. However, it is no worse than a number of others in respect of which similar undertakings were given.

My constituency colleague, Deputy O'Connor, is the lone Government backbencher in the House. When he was a candidate in the general election he caused a letter with the Taoiseach's imprimatur to go in the doors of every house in a large section of my constituency pledging that long-promised refurbishment work in Kingswood schools would commence immediately after the election. Nothing has happened since then. This is just one more example.

Anybody who visited St. Nessan's with Deputy O'Sullivan knows that Portakabins do not come cheap. On 8 April last in answer to a parliamentary question from my colleague, Deputy Wall, the Minister revealed that last year the rental cost of these temporary classrooms for primary schools alone was €8.4 million while the purchase cost was €17 million. There are 166 primary schools renting temporary classrooms and an unknown number have had to purchase classrooms.

I recently visited Lucan with my colleague, Senator Tuffy, to meet with local people trying to cope with the consequences for their schools of explosive local population growth arising from a flood of badly planned and poorly controlled housing developments. Such has been the uncontrolled expansion of Lucan – the largest in the country according to the census – that in recent years many families must send their children to schools outside their community. The fabric of the community is being destroyed by bad planning, the hallmark of Fianna Fáil, and inadequate resources afforded to schools.

Another example taken at random is a secondary school, Castleknock Community College. In 1998 Fianna Fáil and the Progressive Democrats promised this school a purpose-built gym and other facilities to cope with the large number of pupils. Now, although these facilities were promised and had gone to planning and through various other steps in the Department's labyrinthine procedure for permitting building work, nothing has happened to date. In the context of the Government cutbacks in education, the school is now left in no-man's land on the waiting list of work to be completed. That scenario is repeated throughout the country.

In my constituency, Firhouse Community College is almost an identikit of what happened in the case of Castleknock Community College. Again, solemn undertakings were given by the Government. There is no Progressive Democrats candidate in the constituency since the departure of the Tánaiste into exile in Dublin Mid-West. Fianna Fáil pledged that the long-promised sports hall for Firhouse would be built. However, nothing has happened. All around the country communities have been let down by the Government in a similar fashion. Although, according to the Minister of State, Deputy O'Dea, who first made the promise to the people of Mungret in 2001 that St. Nessan's was going to be sorted out, the people who have really been let down are those in the Government. As he put it the other morning on RTE radio when being pressed on St. Nessan's: "The Government was let down because the money ran out." The money ran out, as Tommy Cooper would say, "just like that".

Just like that.

The money ran out, just like that. The Minister for Finance, Deputy McCreevy, did not know it. No one knew it and then it was all gone. It was a big surprise.

What is the Taoiseach doing putting him in the Cabinet?

The feeling of disillusionment all around the country is no surprise to any Deputy on either side of the House. On 27 November last year it was revealed that the Health and Safety Authority was then investigating unsuitable conditions in as many as 34 primary schools around the country. On 8 and 9 of April, my colleague, Deputy O'Sullivan, proposed a motion specifically highlighting the situation with the schools building programme. During that debate Deputies on the Government side of the House drew attention to appalling examples of schools neglect. However, education is only one area.

One of the first cutbacks made by the Government – one of the earliest signs of what was to come – was the announcement on 29 June of last year of a €32 million cutback in the foreign aid budget. A month later this cut was increased to €40 million. Deputy O'Donnell, then a former Minister of State with responsibility for overseas development and human rights, described how she had to fight to protect this budget during her term in office. Last September she told The Irish Times that she had to lie across the overseas development aid budget. She said she had to sit on it like a hen to protect it from all invaders. When Deputy O'Donnell of the Progressive Democrats left the hen-run the foxes immediately struck. The budget she fought to protect was cut at the stroke of a pen. What will Deputy O'Donnell do when the division is called tomorrow? On what side will she cast her vote? I do not think we even need ask. Nor do we need to ask on what side her colleague, Deputy Tim O'Malley, will cast his vote. We know.

When you are bought.

We know that the Government will win the vote tomorrow night, with the support of all these Deputies who will criticise it in the corridors, in the bar, in the newspapers anonymously, on radio and television occasionally. In the media they are strong, forthright and critical. In the lobbies they are sheep, but the actions of the Government, the blatant blather of its counter motion and the whipping of Deputies against their best instincts, the spirit in which they were elected and the truth that they know, is no real victory. No one today believes a word or an utterance that escapes the mouth of the Taoiseach, the Tánaiste and those Ministers and Deputies who go along with and echo the banalities and the clichés of the leaders of this awful Government. The Government told massive untruths to citizens to get itself into office. Just over a year ago at the general election citizens were deceived in the most calculated electoral fraud perpetrated on Irish people.

According to the official figures published by the Department of the Environment, Heritage and Local Government, the average price of a new home in Ireland is now over €200,000 and the average price in Dublin is €267,000. In order to buy a house at those prices, a couple would need an annual income of €60,000 or almost €80,000 if living in Dublin. In the lifetime of the Fianna Fáil-Progressive Democrats Government, the rate of increase in the average price of a new house has been five times the rate of inflation, more than four times the increase in average earnings and more than three times the increase in the cost of building. Fianna Fáil and the Progressive Democrats have presided over six years of profiteering in the housing market and, especially, in the price of building land, all of which has been paid for by house buyers.

Given the scale of the housing crisis, one would expect a re-elected Government to address the problem in the interests of home buyers, the tenant and those who are waiting for social housing. Instead, this is its record since its return to office. The Government has abolished the first-time home buyer's grant; increased VAT on building land by 1%, thus increasing the price of houses; handed back 16,000 affordable housing sites to the builders; cut the budget for social housing by 5% in money terms and almost 20% in real terms; allowed housing lists to increase to almost 50,000 while the number of homeless people has doubled; introduced a Residential Tenancies Bill three years after it was recommended, with a provision that the landlords register will not be shown to the Revenue Commissioners. I know the media, being overworked, does not get around to small points of law, but that is actually in the Bill, that the register may not be shown to the Revenue Commissioners.

It is State-led tax evasion.

This is a Government which, to get elected, fraudulently promised a year ago that it would put 2,000 extra gardaí on the streets – again, in Tommy Cooper's style, "just like that". This is a Government which promised that, on re-election, it would, again like magic, issue 200,000 new medical cards, bringing comfort and security to thousands of families fearful of going to the doctor because they cannot afford it. We have a Taoiseach who, to get his hands back on power, with the Minister for Health and Children, promised to eliminate hospital waiting lists within two years. We now know that during all the time they were making these promises, they were secretly planning the cutbacks on public spending that would be unveiled as soon as the election was safely out of the way.

This also is a Government which, with its cutbacks and mismanagement, priorities, ideological bent and excuse that "the money ran out", is doing untold damage to public services. Perhaps nothing more clearly and graphically illustrates this than the story on health. The health system is in a shambles. Yet it has been lavished with resources so that we are now close to average EU spending. The annual health budget at the beginning of the 1990s was in the region of €1.5 billion a year and it is now almost €9 billion a year. This is taxpayers' money. Irish people have paid for a world-class health service and system, but the Government has not delivered what Irish citizens have paid for. It has delivered chaos, queues and closures.

However, while the Government makes us pay for a world-class health system on which it refuses to deliver, it still finds time to look after its friends, as we saw in this year's Finance Act, with its cool little tax break for investors in private hospitals. Now, we are to have more "reform" of the system, or so we are told. It is, apparently, to be made even less accountable, more remote and probably more expensive. When all the new quangos have been established, their principal merit, in the eyes of the Government, will be that there is someone else to blame.

Of course, our health system needs reform. It needs the sort of reforms that put patients at the centre of the service, the sort of structures where the money follows the patient. It needs reforms that put an emphasis on human dignity, that recognise the right of people to be treated quickly and efficiently when they are in pain. Reforms that tinker with administrative structures, while ignoring the crisis that faces thousands of people on a daily basis, are meaningless. If a chief executive in the private sector made a presentation like that to his shareholders, how long would he last?

Apart from the hospital service as such, Ireland's community care service is, increasingly, a shambles, unable to provide the support elderly people need and to which they are entitled. It is unable to respond to the needs of young mothers or people with physical and sensory disabilities. It is unable to offer children the guarantee of protection that a civilised society would take for granted. In the area of intellectual disability, there are media reports, day after day, demonstrating how such people are capable of beating the world. Other stories demonstrate how people with disabilities have united communities, created a fantastic atmosphere around the world's largest sporting event and given a lead to other countries in this European Year of People with Disabilities, but their Government sneaks around like a thief in the night, refusing to publish the rights-based legislation it has categorically promised, refusing to make the meagre resources available that would prevent essential services from tottering into crisis. The Taoiseach will preside over the opening ceremony of the Special Olympics in Croke Park on Saturday night, but he will not act to prevent vitally needed services from closing down.

The Government is also inflicting serious wounds on the economy. With its policy of stealth taxes, hikes in public service charges and stoking up of consumer spending, inflationary pressures have been intensified and competitiveness damaged, and now we have continuing pressures on the cost of living and an appreciating currency.

One area particularly affected by this mismanagement is the area of housing, to which I have already referred. The truth is that in a remarkably short time and against the ironic background of greatly increased prosperity, Fianna Fáil and the Progressive Democrats have made home ownership a luxury. They have sided with property investors and land speculators against home buyers and tenants. They are making young home buyers and tenants pay for the Government's fiscal mismanagement.

Disadvantaged communities are also being forced to pay. On 8 February 2001, the Taoiseach announced the RAPID programme, designed to fast-track resources to "the 25 most deprived urban neighbourhoods in the State for special treatment, involving the front-loading of State investment in facilities and services to bring about a major improvement in the living standards of the residents in these areas over the next three years". A further 20 areas were subsequently designated. The impression given was that, once a plan was settled on, through the complicated structure prescribed, there would be no shortage of funds to support plans advanced from these areas. Now that those areas have brought forward the plans, there is no money to support them. The Government has pulled out from under its commitment. RAPID was a cleverly chosen acronym, with the purpose of communicating action in transferring significant resources to areas of disadvantage. It worked well in winning votes in the run-up to the last general election. However, now that the election is over, the Government pulled the rug on the most disadvantaged communities in Ireland.

I wish to refer to the Taoiseach's speech to the IMI, in which he pointed out "We have to get our cost and price inflation down to 2% or risk losing jobs and markets." Yet, a range of commentators, including the Central Bank, have shown how the Government's own policies are the direct cause of between 1.5% and 2% in price inflation this year, before any other sectors of the economy are taken into account.

Nothing could put the situation into sharper focus than the 80 page litany of self-pitying claims published by the Government recently in the guise of a progress report. I said at the time, and I repeat, that the Irish people might believe they are more entitled to an 80 page apology from the Government in view of the way they were so seriously misled by Fianna Fáil and the Progressive Democrats during the election campaign. These absurd attempts to rewrite political history – the Government produced three in about two weeks – only add insult to injury. If the Government approached the implementation of the national development plan with the same enthusiasm it has shown for producing reports attempting to defend its own record, the country might not now be in the mess it is. Perhaps more to the point, it is surely time the Government recognised the deep distrust and contempt with which it is viewed by a majority of our people. One year into office, it is widely accepted as a total disaster. In the fullness of time, its dishonesty, incompetence and arrogance will all combine to make a sorry epitaph for the Government.

Deputies

Hear, hear.

The Taoiseach, the Tánaiste and many Ministers have a barely suppressed anger at the notion of people calling them to account in relation to the promises they made in the run-up to the last general election and their performance in this, their sixth year in government. The Government is angry and the reason for its anger is that people are letting it know, in no uncertain terms, how cheated they feel by its behaviour. The air of injured innocence adopted by the Taoiseach, on the basis that all politicians made promises and that "we were only doing our best", does not deceive the public.

People who have experience of the sheer anguish and confusion of waiting in an accident and emergency department for hours, or even days, are equally angry. This is happening in a health service where, time and again, the Taoiseach and Ministers continue to repeat that never has so much money been spent on the health service. However, the silent reply from people is that never has so little been achieved with all that money. Ireland has had a series of wake up calls regarding the state of our economy. Some weeks ago the chairperson of the American Chamber of Commerce in Dublin straight from Boston and the east coast of America told us that unless we pull up our socks in terms of competitiveness and unless we address our infrastructural deficit, we will lose out in attracting inward investment. We will also put the sustainability of existing jobs in doubt.

The Minister for Finance, Deputy McCreevy, is on record as saying he is managing the economy for the long term – that he is in a marathon, not a sprint. This is at odds with his record. It is a strange marathon runner who covers 26 miles in a combination of fast sprinting and exhausted tottering. The Minister's record is one of squeezing spending immediately after one election, and then splurging before the next. This was the pattern during the first FF-PD Government. He is now, once again, cutting back spending, building up the war chest and waiting for the next big splurge.

This is management of the economy for the basest political reasons, but it is terrible economics. It has meant that the economy was overheated at the height of the boom, with high inflation and job losses being the direct result. Now that the economy is at a low point, the dip is worse than it needs to be because the Government is cutting back on spending and diminishing consumer confidence. This is evident from consumer confidence indicators, such as that produced by the ESRI and IIB Bank. Over the economic cycle as a whole, this boom-bust economics means lower growth, higher unemployment and higher inflation. What we need are sustained and sustainable improvements in public services and sound economic management.

If the Minister was really interested in the long-term management of the economy, he would not be cutting back on the national development plan. One of the least well-noticed cuts is the reduction in the target for capital spending on the plan from 5.5% to 5% of GNP. The difference is about €500 million a year, and over the lifetime of this Government it would amount to €2,500 million, or twice this year's budget for the National Roads Authority.

The failure of the national development plan is about more than money. It is about poor economic management, which pushed up inflation when resources were being put into the plan, and about poor political management. If the Minister for Finance put as much energy into the national development plan, for which he has responsibility, as he does into poking his nose into the Department of Health and Children, we might have at least one continuous motorway connecting two of our principle cities.

Investment in infrastructure is the basis for non-inflationary growth in the future. While the appreciation of the euro may cool off Irish inflation, the economy will not grow to its potential without high inflation unless the infrastructural deficit is tackled.

The Government would have us believe that it is not responsible for our economic woes, as though the international downturn could be responsible for inflation that is twice the EU average. It will try to take credit if things pick up, but it is doing lasting damage unless it progresses the national development plan now, and if that means borrowing, so be it. The Taoiseach and the Minister for Enterprise, Trade and Employment, Deputy Harney, are on the record as saying that we are under-borrowed.

The tragedy is that they are squeezing current spending to pay for the infrastructure they are building, rather than prudently borrowing. Current spending is being cut to pay for capital spending, for which the Taoiseach and Deputy Harney accept it would be appropriate to borrow. In the meantime the national pension reserves are being invested in falling equity markets right around the world while our national infrastructure, whether it is roads or railways, is being starved.

We have a revenue problem and an amazing shortfall in revenue. It is not possible to sustain modern public services on a low revenue base. The revenue side is showing the cumulative effect of tax shelters for the rich. We have low income tax rates by European standards. The problem in Ireland is our very narrow tax base, just as it was 30 years ago at the time of the tax marches. Whole sectors of the economy are sheltered from paying their fair rate of tax. The architects of the tax shelters for the rich and the very rich have been the Minister, Deputy McCreevy, Deputy Harney, the Taoiseach and the other right of centre members of Government. Many of the tax shelters emphasise investment in property. This, in turn, has had the effect of boosting property prices beyond what is reasonable or safe in an economy.

Some 33 tax breaks were created by the Government for which we do not even have costings. We do not even know what tax breaks, such as that regarding stallion fees, cost. If the Government was to fulfil any of its promises, even over the five years of its full term of office, it would have to address the inequity and unfairness of our tax structure.

Last Friday a ceiling collapsed in a school in my constituency. It caved in on top of a class of children and their teacher who were lucky to escape injury. One child who was directly under the section of the ceiling that collapsed had his hand up to answer a question. If he had not been doing so, he probably would have been seriously injured.

One might have expected some reaction to such an incident – some sense of urgency, provision of emergency funding or an inspection of all the schools that are substandard and all the old prefabs around the country, but there was none. The biggest reaction I noted was two Ministers of State in my constituency trying to outdo each other to dodge the fallout from what happened when that ceiling collapsed.

In the meantime the school is trying to get on with business. The children in that class cannot go to school. A protest will take place at that school tomorrow morning to try to draw attention to what is a most serious problem, which could have ended in serious injury. It seems to be impossible to evoke any sense of urgency among the Members opposite, even when an incident occurs such as the caving in of a ceiling.

The reaction of the Minister for Education and Science was that this school would not jump the queue and get ahead of other schools on the list. St. Nessan's school and all the other schools on the list are not trying to jump the queue; they are trying to move it forward. Some 60 to 70 schools are in exactly the same section of the queue as St. Nessan's school and they are going nowhere. They are on the "maybe next year" list. Maybe their needs will not be addressed next year; they may not be addressed for several years – they do not know.

The collapse of the ceiling in St. Nessan's school has not made a blind bit of difference to the priorities of the Government. There is no general inspection of old prefab and substandard schools. There seems to be no extra capital fund or concern about the promises made to schools in Mungret, Wexford, Littleton, Tallaght, Donegal, Tullamore and all of the other places up and down the country, to which many of the Members opposite made promises and said the money was there. In the case of Mungret, the Minister of State, Deputy O'Dea,—

It is a case of Peter who said, "Not I, Lord."

—announced €2.15 million in 2001 and, as my party leader said, he seems to be quite perplexed that the money has disappeared and none of the Members opposite know where it has gone. It is not their responsibility, they are washing their hands of it, but they are in Government; they are in power. They are the ones who ultimately have political responsibility.

Do the Members opposite know that there are puddles on the floors of a school in Oughterard; that there is unsafe electricity in a school in Newbridge; that there is a condemned school in Bantry with no hot water and no heat or light in the toilets; that there is no school for hundreds of children in Lucan; that the rat holes in one school in Kerry are blocked up with pencil cases; and that there is a school in Kilfinane in County Limerick in respect of which I have received several letters, from one of which I will quote a sentence. The letter states, "In so-called modern Ireland my child has to brave all weathers to use an unheated toilet, an outhouse, where conditions are further exacerbated by a lack of hot water facilities."

What we are asking the Taoiseach, Deputy Harney and members of the Progressive Democrats and Fianna Fáil for is some reaction. We are asking them to find the money. This is the most basic of infrastructural needs in any country. It is the place where most of our children spend their waking hours, yet the Members opposite are sitting there as if nothing has happened and there is no need to do anything. There is something simple that they could do. They could provide funding for substandard school buildings and fulfil the other promises that were made, some of which I am about to talk about in education and others to which members of my party have already referred and will refer later in this debate.

As my colleague, Deputy Joan Burton, has already pointed out, a number of actions could be taken in the financial area. We heard today that €15 million is to be spent on renovating the Department of Justice, Equality and Law Reform. The purchase of the Government jet could be cancelled, various loopholes could be closed in the tax system and so on. The money invested in the stock market for contingencies up to 2025 could certainly be reduced. Something must be done – the Government cannot just bury its head in the sand and pretend it is not its responsibility. People believed what was written in the manifestos. They believed Deputy McCreevy when he said no significant overruns were projected and no cutbacks whatsoever were being planned, secretly or otherwise.

A great lie.

The cutbacks and increased charges started within a month of the election and they have mounted up week after week and month after month throughout the Government's first year in office. My colleagues will refer to several of these.

In education, it began with a 70% hike in the registration charge for third level on 18 July. A cut in IT courses followed on 29 July. A total of €36 million was taken out of the education budget on 13 September, which included the school retention programme, the back to education programme, second level buildings, research and development in institutes of technology and teacher recruitment and training. On 14 November, the capital budget was cut for education in the Book of Estimates. On 2 December, part of the school capitation grant was frozen. On 12 December, restrictions were imposed on the guidelines for support for children with special needs. The summer jobs scheme was abolished and the school building programme revealed the broken promises of the Government. The back to education allowance was curtailed. This week and next week, children with special needs are leaving their current places and have nowhere to go. That is what has happened in the area of education but cuts have also been made in many other areas.

The Taoiseach and the Tánaiste should know that people are angry about the broken promises, but they are even more angry about lost opportunities. The wealth that was built up in this country was absolutely squandered. People thought they would see services being built up; they thought they would see the fruits of the Celtic tiger. Now we are witnessing all the old problems that existed before the wealth was built up. We see the same waiting lists and the same problems with school buildings. In effect, we have seen no improvements, despite all the wealth that was created. All this happened during the lifetimes of the previous and current Governments. The Taoiseach and the Tánaiste must take political responsibility for this fiasco.

Deputies

Hear, hear.

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"– noting that this month marks the first anniversary of the election by Dáil Éireann of the current Fianna Fáil-PD Government;

– acknowledges the contribution made to date by the Taoiseach, Deputy Bertie Ahern, and the Tánaiste, Deputy Mary Harney, in working to honour the commitments made in An Agreed Programme for Government, including among many others:

– working tirelessly for lasting peace in Northern Ireland;

– renewing social partnership as a fair and equitable basis for economic stability;

– listening to the concerns of the people and responding to them by securing the passing of the Treaty of Nice;

– keeping on target our pledge to increase pensions to €200 a week by giving pensioners a €10 increase in the 2003 budget;

– giving priority to our health services by increasing funding by 12% and employing over 5,000 new health care workers and professionals, including 2,000 new nurses, who are delivering care to patients resulting in over 100,000 more treatments being carried out this year than in 1997;

– investment in education increasing this year to almost €6 billion, a 94% increase on 1997 with much of the additional funding being targeted on tackling disadvantage, as well as the €343 million schools building programme for 2003 and pupil-teacher ratio in primary schools at less than 19:1; and

– ensuring unemployment remains at an historically low level of 4.6%, comparing favourably with the 10.3% rate back in 1997 when the parties in Government formed their first Administration or the current eurozone average of 8.7%,

– commends the Government for its prudent handling of the public finances and reaffirms that it is a key objective of An Agreed Programme for Government to sustain a strong economy and "keep the finances of general Government close to balance or in surplus.";

– acknowledges, in particular, in this regard the achievement of the Minister for Finance in keeping spending within target and achieving a budget surplus in 2002 at a time of global uncertainty, when many of our neighbours in Europe are experiencing deficits, serious economic setbacks and, in some cases, negative economic growth;

– accepts that while there will inevitably be public concerns given the international downturn and the consequential slowdown in the Irish economy, only by acting sensibly now, and refusing to take the short-term option of massive borrowing, can the Government secure Ireland's fiscal and economic future and so ensure that we are in a strong position to accelerate rapidly when there is an inevitable upsurge in the international economy;

– reaffirms that An Agreed Programme for Government is a five year programme and that both parties in Government will do their utmost to honour these commitments within that timeframe as the record shows theydid during the last Administration; and

– rejects the Opposition criticisms regarding the many measures taken to improve Ireland's infrastructure and acknowledges the strong record of the Government in addressing Ireland's infrastructural deficit in a coherent, determined way through policies which will enhance the social and economic fabric of society including:

– the establishment of the National Development Finance Agency to finance major public and infrastructural projects;

– the total investment in the national roads programme in 2003 of over €1.26 billion, the highest provision for national roads in the history of the State;

– the multi-stranded approach to addressing housing needs right across the spectrum, which has resulted in 287,000 houses being built nationally since the parties in Government formed their first Administration with 2002 being another record year for new housing output, surpassing the previous year's record of almost 53,000 new homes;

– the putting in place of open access broadband infrastructure on a national basis with the roll-out of a new €65 million national broadband scheme which will deliver high speed Internet access to 19 key towns around the country; and

– the publication of the national spatial strategy, which will help to ensure that all regions develop to their potential and that infrastructure is delivered in a co-ordinated and strategic way that will complement balanced regionaldevelopment."

I wish to share my time with the Tánaiste and the Minister for Finance.

The Labour Party has decided to use its Private Members' time to lecture the Government, one year into its five-year term of office, on the commitments it has not yet fulfilled. On behalf of the Government, I acknowledge that there is much to be done and much that we are ambitious to do and will continue to do every day of our four years in office.

A lot done, more to do.

Deputies should listen to what the Taoiseach has to say.

I remind the education spokesperson of the Labour Party what times were like when her party was last in power. Some 12.5 million—

(Interruptions).

The Taoiseach should cop on. The Government told lies to the people.

Deputy Penrose's party members were afforded the courtesy of being listened to without interruption. The Chair insists that the Taoiseach is given the same courtesy.

I received 30 seconds without interruption, which is good for the Labour Party. On behalf of the Government, I acknowledge how much is to be done. Four major projects were ongoing back in 1997 when we took over power. A total of €340 million is being spent in the area of education in 149 projects throughout the country and there are 450 projects under minor schemes. We will continue, as we have done for the past five or six years, to improve the school structure.

The Labour Party, of course, has lost touch with the reality of government. It has forgotten that government must be tempered by a healthy respect for economic reality. It chooses to overlook the fact that effective government is about matching plans with resources.

What about the comments of the American Chamber of Commerce?

Deputies should listen.

Deputy Burton, as finance spokesperson for her party, unfortunately does not yet understand the Stability and Growth Pact. She said tonight that it did not matter.

I understand the Irish economy.

This Government is working hard for all our people. We are focused on what needs to be done and we have plans and the capacity to build on those into the future. With regard to the economy, we began 2003 as we said we would in the budget we introduced 12 months previously. In the 2002 budget, we said that we would increase public spending by 14% and we did. We said we would return a modest surplus and we did. Throughout last year, others predicted that we would not meet the objectives we had set for ourselves – the objectives we promised the people we would meet. The naysayers were proved wrong. This year, we said we would increase public spending by another 7% and we will. We say that we will have a modest deficit and we will.

One year ago, we promised the people that they could trust us to manage the economy and they can. We have the courage, as we promised we would, to change our policies with our circumstances.

The courage to tell lies.

It was a U-turn.

We will not run an economy in 2003, with growth of 3.5%, on the same basis as we did in 2001 with growth of 11%.

The Taoiseach is admitting he told lies.

When things change quickly, Governments must react quickly. As the European Commission put it, "momentum faded in the second half of last year" in the EU. This was not an Irish phenomenon. Across the eurozone, growth in the last quarter of 2002 was half that of the previous quarter. At home, growth in the second half of the year was about one sixth of what it was in the first quarter. Uncertainty abroad inevitably affects a globalised economy such as ours. Indeed, a downturn in Germany has on average twice the impact on the Irish economy that it has on the rest of the EU.

So everyone else is to blame.

When we had more money, we spent more money. Now that we have less, we are spending less. It is the right policy and it is the one we will continue.

Ultimately, good government is about making the right choices. We said that our priorities would include improving infrastructure to ensure our sustainable growth in the future and that is what we are doing. Our expenditure is approximately double that of our EU partners in capital terms. We said that our priority would be pensions and we are delivering in that area. Old age pensions have been increased to €157. With a view to the retirement of today's workers, we will continue to invest in the pension reserve fund.

They will have to pay for their own home help.

(Interruptions).

I noticed tonight that Labour reiterated that it would get rid of that too.

The Government has lost it.

The reality is that some things are more important than others. We explained what our priorities would be and are delivering on them. I acknowledge that the pace of delivery has slowed. I know there is frustration that the unprecedented pace of increase in public spending over the past few years has had to be moderated. Some plans remain to be fulfilled and some ambitions are not yet realised. This is not the time to give up. Neither is it the time to be panicked into rash responses—

The Government should bring back the home help scheme.

—or to run around the country trying to criticise everything that is Irish. That is a sad position to adopt and is what Labour and the Opposition have to offer. They shout "crisis" at every turn. They forecast doom at every opportunity but they do not have even one shred of sensible policy that would make a practical improvement to people's lives.

(Interruptions).

The Labour Party Members are out of order.

I ask Deputy Stagg to allow the Taoiseach to continue without interruption.

The Minister for Foreign Affairs is behaving himself.

The fact is that the Labour Party promised to spend more, tax more and borrow more. In Government, its plans would be a disaster in the making.

We have a disaster now.

The alternatives offered by Labour would destroy Irish jobs and confidence in business. By raising unemployment and taxes, the Labour Party would have been less able, not more able, to deliver on the wish lists they now wave at us every day.

Scare tactics.

As the Labour Party plays again the broken record about broken promises, we should consider the disaster which would ensue if the Labour Party were ever allowed to fulfil its promises. The Labour Party has given me a price tag, so I will give one back. The price tag for the Labour Party in power would be €33 billion.

That is nonsense.

(Interruptions).

It intended to borrow a minimum of €19 billion. It would have increased the national debt by 51% at least. It would have increased PRSI and imposed job-killing taxes.

At least people would have disposed of the current Government.

It would have punished enterprise and doubled capital gains tax to 40%. It would have raided the pensions reserve fund that is being set aside to secure decent pensions in the future.

A Deputy

Deputy Harney wanted to do that anyway.

It would have re-mortgaged all our futures, just as we had worked so hard to pay off some of our national debt.

(Interruptions).

Please allow the Taoiseach to continue without interruption.

A Cheann Comhairle, it is their contribution to political life.

The Labour Party would have reversed the progress of the past five years. Under Labour, this was and would have been again a country of high taxes, high unemployment and a high national debt. It is the Government, not the Opposition, that is persevering in more difficult times. It is the Government that is wisely keeping its head and sticking to its policies.

In Sustaining Progress, the social partners have agreed with the need for sensible action. The NESC recognises that we are experiencing economic vulnerabilities generated by factors largely outside our control. With the support of the social partners, we are committed to pursuing policies that achieve growth, sustain high levels of employment, bring about lower inflation, have sustainable public finances and bring a sharp focus on improving our physical and social infrastructure and a fair approach to distributing economic rewards. Sustaining Progress provides for managing the public finances in a way that ensures a sustainable match between resources and expenditure so that as the economy returns to full its potential, which it will, current public expenditure rises no faster than GNP and the debt to GNP ratio continues its gradual decline. That is precisely the strategy we are pursuing.

Although the economic climate has changed around the world, one thing has not changed. Ireland remains a leader in achievement and in growth. Our GDP per capita was recently recorded at 122% of the European Union average. Our unemployment rate at close to 4% is well below the European average. Germany is now over 10%. Our national debt to GNP ratio is the second lowest in the European Union. If we can keep that place and keep ahead of the pack, then we will, over time, deliver the services that people want. I do not discount our problems and, above all, I do not underestimate what we have yet to do. However, neither must we underestimate ourselves.

Does the Taoiseach know the disabled person's grant—

Deputy Sherlock had his 40 minutes.

By being sensible, by concentrating spending in the most important areas, we are ensuring that the economy continues to be a world leader. We are ensuring that in the midst of a global downturn, we are not just maintaining but increasing on already historically high levels of public investment in infrastructure, pensions and on health.

(Interruptions).

We are spending over 12% on health. We are spending double the amount on capital. Unfortunately, Deputy Stagg has no idea what we are doing and he does not know what he is doing either.

We can do this because, unlike our opponents, we have clear priorities. We are prepared to continue on with the issues that will help this country back into strong growth. Unlike our opponents, we do not have the brass neck to pretend to have one for everybody in the audience.

The Taoiseach told them he had before the election.

(Interruptions).

Order, please.

Instead, by having the political courage, we are doing the right thing for Ireland. By having clear priorities and by putting them first, we are working to deliver on key areas first. As I travel around the country and listen to the plans the people have, my determination to see them through is redoubled. The way to deliver on all our plans is to stick to the path of prudent progress, which we will continue to do. This is our plan and we are sticking to it.

On health, we published our strategy over a year ago. As promised, we are continuing to deliver the resources. In the 12 months since the Government has been in office, we have increased health funding again by 12%. Since the election, there are 5,000 new health care workers and professionals delivering more treatment to more patients.

Some 500 hospital beds closed.

That includes an extra 2,000 nurses.

What about promises to nursing homes?

We know there are still major challenges ahead. We know that although waiting lists are down and times are shorter, too many people still have to wait for too long. That is why in our health strategy we did not just say we would spend more and continue to employ more staff, but we want to reform how the health services are delivered to our people. Tomorrow the Government will publish its plans for reform and I am sure the Opposition will support it following what Deputy Rabbitte said tonight.

I ask for just one thing. I ask that the people in the health services who sought change will now support that change. I especially ask that other political parties who have been so concerned about health, who have had so much to say about health and who have so often demanded radical reform, will now add their voices to the need for change. Politics, including local politics, has to stop at the door of our hospitals. Patients have to be put first and change will come now. I hope we will get support for that.

Difficult times test the mettle of real leadership. In the short-term, there will be no easy solutions and no quick fixes. Progress, though hard won, will be steadily achieved. Day in, day out, for every day of the remaining four years of our mandate, the Government will work to implement its programme. It will protect the prosperity that we as a nation have begun to build together. It will hold its nerve and stick to its course. We will realise the ambitions of our people and we will leave a lasting legacy that will be built on solid foundations.

Deputies

Hear, hear.

An Leas-Cheann Comhairle

The Deputy has 17 minutes.

It is over a year.

That is what Deputy Howlin said in 1997.

An Leas-Cheann Comhairle

The Deputy has ten minutes with the balance for the Minister for Finance.

It is over the year since we had the last election and it is about time the Labour Party stopped whinging about the outcome of the election.

It is over six years since Deputy Harney was elected—

(Interruptions).

An Leas-Cheann Comhairle

Order, please.

Political commitments are based on economic assumptions. My party, the Progressive Democrats, based its election manifesto last year on the belief that the Irish economy would grow at an average rate of 5% in real terms up to 2004. The other parties in this House made similar assumptions about the national economy. All such assumptions were based on a broadly favourable international outlook. They were based, in particular, on the expectation that the incipient recovery in the US economy would be sustained and that recovery would take hold shortly in Europe.

Things have not worked out like that and the coalition has faced a very tough international climate during its first 12 months in office. The US continues to grow only modestly at just over 2%. Many of the large European economies are effectively stalled and it is estimated that the eurozone as a whole will grow by just 0.8% in the current year. It is in this context that the performance of the coalition over the last 12 months should be assessed. The Irish economy has performed well by international standards in a very difficult climate. Yes, growth levels have fallen and this has put pressure on Government revenues but Ireland remains one of the strongest performers in the EU.

The most important achievement of the Government has been to maintain the Irish economy at full employment. The most recent quarterly survey from the Central Statistics Office – for the quarter to February 2003 – shows how resilient our economy is. The number of people at work is up on the same period last year by 1.3%. The unemployment rate stands at just 4.6% and the rate of long-term unemployment is still just 1.4%. These are impressive figures, particularly when one looks at what is happening elsewhere in Europe. Across the four largest members of the eurozone, unemployment rates range from 9% to 11%.

The Government faces a range of challenges over the next four years. It must deliver significant improvements in public services. It must provide enhanced supports for all those who depend on social welfare. We must transform our public infrastructure. The real political question – the issue which goes to the very heart of political debate in this country – is how one sets about achieving those objectives. There are still those who believe that raising taxes is the way to solve the country's problems. They say the rate of capital gains tax is too low, the rate of corporation tax is too low and the top rate of income tax is too low. In short, they believe it is by increasing taxation on investment, enterprise and employment one achieves social and economic progress. I disagree fundamentally with this view.

There is a view that the role of Government in Ireland is too small and that it needs to be increased through additional Government spending funded by additional taxation. This is simply not true. The level of Government spending in Ireland as a percentage of GNP is broadly in line with other OECD countries and provides no basis for higher levels of taxation on work. It is widely accepted by international commentators that the significant reductions in direct taxes of recent years have been a major factor in our economic success.

We have reduced taxes on investment, enterprise and employment. The net result has been a substantial increase in employment and a dramatic reduction in unemployment and the amount of money we are spending on services. Health spending, as Deputy Rabbitte acknowledged, has increased from €3 billion to €9 billion.

(Interruptions).

There is nothing to show for it.

An Leas-Cheann Comhairle

Order, please. Deputy Harney, without interruption.

The Deputy is aware that lower taxes are delivering increased revenue over the position six years ago. We would be mad to abandon what has been proved to be a successful policy. Changing course now would only put the country into reverse.

Did the Tánaiste mention that the Government is closing hospital beds?

We would be absolutely mad to abandon what has been a very successful policy. Changing course now would only put this country into reverse.

It is in reverse.

While I want to see better public services just as much as anybody else, I am not prepared to pay for higher spending on public services with higher levels of unemployment. That is not the road to social progress in my book. The debate on taxation was waged last summer and the Government parties won. I am sure the same debate will be waged again in 2007 and I am confident that the outcome will be the same.

Indirect taxation.

It is said that fear of inflation is deeply embedded in the psyche of the German people. The economic collapse during the Weimar republic left a profound mark on the German folk memory. I believe that the same holds true in this country with regard to unemployment.

We have twice the EU rate of inflation.

It is only ten years since the jobless rate in this country was at 15%. There were considerably more than 200,000 people out of work and most of those were trapped in long-term unemployment. We also lost 6% of our population in net terms through emigration during the 1980s. It was a time of despair and failure, and nobody in this country wants to go back there.

The Irish people do not want to take chances with full employment. They do not want to put at risk the huge economic progress, which we have made over the past ten years. We have an economic strategy that has delivered full employment and that works. We will stick with that winning strategy over the next four years. The Government will be judged on its record by the people in 2007. It will be judged on its success in tackling the great social and economic issues which confront our country.

I have said that we will keep taxes down to keep unemployment down. However, there are also other areas where progress is essential if this country is to achieve its full potential and if economic success is to translate into a better quality of life. We must reform our public service. Our experience with health shows that investment without reform will not deliver the dividends we require. The Government has invested massively in health – current spending on health this year will be €5 billion higher than it was in 1997.

That was when we had the governor of Angola.

Structural reform is needed to ensure that extra expenditure converts into a better service for patients. Tomorrow the Government will announce the most far-reaching package of reforms in a generation to our public health system.

We cannot wait.

I am delighted the Deputy cannot wait and I hope she will support it.

Political courage is required to tackle vested interests in any area. The challenge is all the greater in Ireland because, unfortunately, we lack the broad-based consumer lobby that should provide political support for pro-competition initiatives. Virtually every proposal to increase competition in the Irish economy is met with entrenched opposition from those with a vested interest in the status quo. If we are serious about economic progress and social justice we, as politicians, must be prepared to take decisive action on behalf of consumers.

The future success of the Irish economy will depend to a great degree on our ability to deliver new infrastructure. Progress is being made. The Drogheda bypass has just opened and with two new projects in north County Dublin due to open next week, by the end of this month we will have a continuous motorway link all the way from Dublin to Dundalk. Several other strategic projects are either under construction or about to start.

They will be tolled.

These are the Dublin Port tunnel, the Kilcock to Kinnegad motorway, the Monasterevin bypass and the Limerick southern ring road.

They are all years late.

Within the next two to three years we will see a real transformation of our national road network and we will see a real improvement in travelling times between our major urban centres.

What about the Red Cow roundabout?

The Government is determined to improve the speed and efficiency with which major infrastructural projects are delivered.

A number of years ago the present leader of the Labour Party, Deputy Rabbitte, in speaking about the coalition of the day, referred to the Labour ass that had combined to produce a Government jennet.

What did he say about Fianna Fáil?

(Interruptions).

The Deputy is riding roughshod now.

He described Fianna Fáil as a horse and the Labour Party as an ass, which combined to produce a jennet. Notwithstanding Deputy Burton's interest in stallions, I assure Deputy Rabbitte that the present coalition is a thoroughbred, which will last the full term.

A tax-free thoroughbred.

The motion being debated this evening is typically opportunistic as is most evidently demonstrated by the selective use of the letter I wrote to Deputy Noonan days before last year's general election. The Labour Party has, as it and others do with regularity, conveniently quoted from my letter in a way which serves its purpose and deliberately and mischievously misrepresents what I said.

The Minister can do better than that.

The Labour Party does not continue to quote from the letter, which, if it did, would undermine its case. I am glad to have the opportunity this evening to read into the record of the House the relevant paragraph which vindicates my position. In the letter I said:

I have already published the full Revised Estimates Volume for this year which, as you are aware, sets out our spending plans in considerable detail. I can confirm that there are no significant overruns projected and no cutbacks whatsoever are being planned, secretly or otherwise.

(Interruptions).

In the next paragraph I went on to say:

Having considerable experience of Government yourself, I'm sure you realise that with a Government spending programme of €40 billion this year, some programmes will underspend and others will overspend. In the history of the State there is no example of a year when there were no changes whatsoever to initial spending plans.

That is good management all right.

Last year we did exactly as I said we would. When one considers that our manifesto was the least ambitious of those put before the Irish people last year, it is frightening to think what kind of a debate we might be having had the parties opposite been elected. It seems there are many, both inside and outside the House, who will never quite come to terms with the fact that the outgoing Fianna Fáil and Progressive Democrats Government was re-elected, the first Government to be re-elected for 33 years.

They are mostly outside.

Not only that, but we have another four years to serve at which time we will happily put our record to the ultimate test, that of the people. I especially welcome the opportunity to defend my record and that of the Government in relation to the management of the economy not just since May of last year but since June 1997. I also strongly reject the implication in the motion before the House that the Government somehow concealed the state of the public finances in the early part of last year.

The heading of the next part of the Minister's speech is: "The new reality".

The economic circumstances in which we are now operating have changed significantly in a relatively short period of time and all of us have to adjust our expectations to reflect these new circumstances.

It is more than that.

It is important that, in adjusting our expectations, we face up to the challenges, which the new reality presents.

The new reality.

As a Government we have had to take firm decisions, which reflect this new reality. My determination is to maintain a responsible attitude to the public finances and to ensure that decisions are taken in the interests of long-term prosperity rather than short-term popularity.

That is new.

The Government will not shirk its responsibilities in this regard. It is not afraid to make unpopular and difficult choices in the best interests of the economy and, more importantly, the people.

The Government looks after the wealthy, but not the ordinary working class.

Despite the changed economic circumstances our approach to public expenditure in 2003 has not been as draconian as alleged by some. Voted expenditure will increase by almost 7% this year which is well in excess of the projected inflation rate. This level of increase should enable us to consolidate the massive increase in public capital and current investment, which took place over the previous five years.

Our economy continues to outperform, in growth terms, most of those of our European partners and easily outperforms the euro zone average. I am not prepared to compromise the progress we have made in recent years at this stage. The benefits which we have achieved have been hard won and we will not allow them to be easily lost. I have long been an advocate of letting people hold on to as much of their own money as possible.

If they are very rich.

For this reason we pursued a policy of progressively reducing the personal tax burden during our previous term.

Straight "Reaganomics" that is anti-social.

Only last week a report on taxation in the EU from 1995 to 2001 concluded that during the period only five countries experienced a reduction in their respective tax burdens. Germany, Finland, Luxembourg and the Netherlands all reduced their tax to GDP ratios by between 0.1% and 0.6%. However, Ireland was the clear winner with a reduction in our tax burden by a full 2%.

What about services?

Is this the kind of progress that the proposers of tonight's motion are suggesting ought to be reversed?

Our level of social security contributions is the second lowest in the European Union and our tax burden, as a percentage of GDP, was the lowest in the EU at 31.2% and significantly below the EU average of 41.1%. The motion is typical in its condemnation of current policy and lacks any constructive element. It ignores the new economic reality. It demands massive investment in a wide range of public services while, on the other hand, accuses us of cutting back on vital public services. It is a recipe for economic disaster. It would, in one fell swoop, undo everything we have achieved.

There are times when I believe that, if the management of the Irish economy was not such a crucial issue, some of the debate surrounding it would actually be amusing. Those who are demanding significant investments in public services and who accuse us of cutbacks last year, are the same people who appear outraged at the extent to which we did invest significantly in public services during our first term in office.

During the end of the Government's last term of office.

Despite this apparent outrage, I have yet to hear one person on the other side of the House identify a particular area of the public services in which we ought not to have invested.

The sum of €15 million.

As I said in my 2003 budget speech, we have continued to invest in priority areas such as health care where expenditure has increased from €3.6 billion to €9.2 billion. Education has increased from €3.2 billion to €5.9 billion and Exchequer-funded capital services have more than doubled from €2 billion to €5.5 billion.

What about the SSIAs?

I restate our determination to pursue the correct policies to safeguard Ireland's competitiveness so as to ensure that we will be well-placed to take advantage of the international recovery when it comes.

We must, however, recognise the budgetary implications of lower economic growth which means lower tax revenue growth. Consequently, the funds we have available to spend on public services will grow at a slower pace than in recent years. We have to adjust our expectations to this new reality. I assure the House that, notwithstanding the downturn in the global economy, our fundamental principles are sound.

We lost €1 billion abroad on the national pension reserve fund.

We will continue to foster the economic conditions to create wealth and jobs in this country through the pursuit of stable economic and budgetary policies and the avoidance of unsustainable borrowing. I commend the Government motion to the House.

Deputies

Hear, hear.

I wish to share time with Deputies Durkan and Lynch.

Government Deputies should not be rushing out of the Chamber.

They were whipped into coming in here. Only for that they would not be there. I saw Deputies applauding tonight that were condemning the Government on radio only last week.

Deputy Connaughton is not successful. He should stick to what he has to say.

(Interruptions).

An Leas-Cheann Comhairle

Order. Deputies should address the Chair.

I thank the Labour Party for tabling this motion and the point was certainly got across during this debate. I have never seen such a brass neck approach in all the years I have been a Deputy as I heard from the Taoiseach, Deputy Harney and the Minister for Finance.

Not even the 1977 Fianna Fáil Government got up the noses of the Irish people like this one has in the past 12 months. This time last year as the new Government was being put in place, even the most upbeat Minister flushed with the ministerial seal of office in the pocket could have seen the clouds gathering. During this time last year, the electorate were happy because they believed what they were told by the Government. They voted for a Government that told them it was realistic that after what they saw during the previous five years, there was more to come in the next five years. That is what they voted for.

Hear, hear.

That is not the sin committed by the Minister for Finance or the Government. The sin was not the broken promises, as many Governments before this did what they thought was right but could not deliver for a variety of reasons. The mortal sin that the Minister committed and which will stand against him for as long as he lives, is that he knew he could not deliver the election promises. The Minister and the Government were the only people who knew what the books were like and, even as they were getting ready for the election, they were already making cutbacks.

A Deputy

We did not know.

The Deputy was on a lower rating then.

The Minister knew well and so too did Deputy Cowen and the rest of them. The Government has conned the electorate. No one likes to be conned. That is why the Government's popularity is sliding every day. After some of the contributions I heard during this debate, it will slide again next week because people will not believe what the Government has to say.

The broken promises are like the litany of the faith. I have not time to go through them all, but what happened to the extra 2,000 gardaí? On every platform on which I stood last year, a Fianna Fáil candidate promised an extra 2,000 gardaí.

Lord graciously hear us.

Lord graciously hear us indeed. There are 29,000 people on hospital waiting lists.

Lord graciously hear us.

Wait until tomorrow, which will be a year and a half after the great health strategy had everyone talking about it for 30 days. The Government conned people a year and a half ago with regard to what the health strategy would do.

The Deputy should wait for the waiting lists now.

Deputy Cowen made no great job of it when he was there.

Deputy Cowen put Deputy Martin into it

An Leas-Cheann Comhairle

Order.

Deputy Cowen had a lovely bedside manner. Wait until he hears the new shake-up tomorrow.

There are not many waiting lists in Tullamore.

They will have the answer to everything tomorrow with the new health strategy.

There are a lot less people on waiting lists than was the case. I can prove that.

How many are waiting to get on the waiting lists?

Deputy Connaughton should tell us how many people are on waiting lists.

An Leas-Cheann Comhairle

Order, please.

Let us look at what the Government has done for the mentally and physically handicapped and what has happened in this regard. Knowing the brass neck approach of this Government, I guarantee the Taoiseach will have money for mental handicap services before this week is out. The halls were packed with people and I have seen Government backbenchers under the most severe pressure over the past six months. No money could be found yet I guarantee it will be found next week in the most cynical exercise. However, even Deputy O'Dea could not find money for the school that fell down on top of him.

Deputy O'Dea is looking for money for plasterboard.

Then there is the national development plan which was only put into operation a couple of years ago. What has actually happened under the plan? Let us examine what the Government was able to do. Only 12 of the planned 34 roads projects have been completed. There are parts of the State that will not see the effects of the national development plan until 2015. It will be that long before some of the roads are built. That is what parts of the country got out of the national development plan.

Fine Gael will sort it all out.

We will be there, Deputy O'Dea. Then there is the cynicism of Deputy Harney. She took 10,000 places from people at the bottom of the ladder who wanted to work and were on social welfare.

She gave it to the Minister for Education and Children, Deputy Noel Dempsey.

She made sure they will not work this year or next year. She took their dignity and self esteem away. That is the Progressive Democrats approach of this Government. I am glad the Minister for Finance is in the Chamber.

He is seldom seen here.

The Minister will never be allowed in Fianna Fáil to forget the famous statement attributed to him. The Minister's motto is, "If you cannot beat them, join them."

Keep spelling it out.

Keep spelling it out. The Minister stated to Deputy Noonan on that famous occasion—

Deputy who?

—that he could confirm that there were no significant overruns projected and no cutbacks whatsoever were being planned, secretly or otherwise. The Minister qualified this statement during this debate – this is the laughable bit – when he said there was never a year in the Department of Finance when estimates did not go up and down a small bit. That was his qualification.

Like a blind.

I guarantee the Minister that he will never get away with that one.

Fine Gael got away with it for five years. It could not keep within its budget. The difference is that we stuck within our budget.

(Interruptions).

The Deputy got it right. Good man, Deputy Cowen.

"Got away with it," being the operative phrase.

Fine Gael could not get away with it because it could not stick within its budget. On a point of order, the Deputy should not misrepresent me.

(Interruptions).

An Leas-Cheann Comhairle

Order.

They are after the Minister for Finance. Deputy Cowen should keep it to himself. The people are fed up with the Government.

A Leas-Cheann Comhairle, on a point of order. I will keep it for tomorrow instead. My apologies for interrupting the Deputy.

Let us examine what the Government has done for agriculture. There has been a budget cut of 13% for An Bord Bia in case we might sell a pound of meat on the international market. There has been a 44% cut in the agricultural development fund. Half the Teagasc offices and the other agricultural advisory services have been annihilated. Mellowes College in Athenry has been closed, just in case we could do a job for Irish farmers.

He went to Iran.

He was there. The Government cut funding for jobs for the west by 68%. That is what it did for the Commission for the West. What about the decentralisation programme?

A lot done; more to do.

When Square D closed in Ballinasloe, the Tánaiste said the decentralisation programme would be implemented shortly. She was asked what she meant by "shortly". That was four or five months ago. The Government has stated that for the past three or four years, but it has not decentralised anything. It seems it will not do anything in the future.

An Leas-Cheann Comhairle

The Deputy has exceeded his seven minutes.

I am only getting into my stride. I am sorry I do not have 27 minutes.

It is just a little more than a year ago today that the people were led up the mountain.

Debate adjourned.
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