The Order of Business is No. 1, Adoption Bill 2009 — Committee Stage, to be taken at the conclusion of the Order of Business and to adjourn not later than 5 p.m., if not previously concluded, and No. 22, Private Members' motion No. 34 on the development of microfinance, to be taken at 5 p.m. and to conclude not later than 7 p.m. The business of the House will be interrupted between 1.30 p.m. and 3 p.m.
Order of Business.
I welcome the decision to take only Committee Stage of the Adoption Bill today and to have the Report Stage debate on another day. This is much more satisfactory than what was originally planned.
Unfortunately, the optimism expressed by the Deputy Leader in the House yesterday, when he indicated that tax receipts would be adequate to prevent the need for further budgetary measures, was short-lived, as became clear from the Exchequer returns published later in the day. The Taoiseach indicated that a range of taxation and expenditure adjustments would be made by the Government towards the end of the month. Again, we are waiting. I note the Taoiseach did not call this a budget. I must ask when is a budget not a budget. We are talking about spending and taxation measures. I ask the Deputy Leader to break away from the doublespeak we have heard and tell the people the truth. If we need a budget at the end of the month, the people want to see a fair and comprehensive budget. The key word is "fair". They are tired of the drip-feed of information and the lack of a roadmap. Does the Deputy Leader agree that a comprehensive roadmap is necessary to restore confidence both nationally and internationally? Without this, it is hard for people to plan. If the country does not plan, individuals do not plan. People do not know what the Government's plans are in both these areas. I ask the Deputy Leader to use his influence and that of his party to ensure we have fair and comprehensive measures and that we have a roadmap.
People can see the contrast between the waste at the top and the decisions taken on the front line, including provision for special needs, which I mentioned yesterday. The waste must be tackled, whether it is helicopter trips or the stories from FÁS which have been highlighted so effectively and for so long by Senator Ross and others in the House. Will we see comprehensive plans to end the type of waste that has resulted in so much disillusionment and made it hard for people to accept the very measures that may be necessary to save this economy? I would be interested to hear the Deputy Leader's response to these points.
I welcome the announcement made by the Government yesterday on taxation. I am one of those who has been shouting for an approach in that direction for the last three or four months. I look forward to seeing what the approach will be. As long as there is a fair and progressive approach to taxation people will have to bite the bullet, and society will be prepared to do so if measures are taken fairly, honestly, openly and effectively.
I agree with 99% of the points made by Senator Fitzgerald, particularly in terms of waste, which must also be examined. I am not sure about her reference to helicopter trips; this may be the only point of difference I have with the Senator this morning. The Government must continue to operate and I do not think it should run in front of the media worried about a Minister using a helicopter if it is properly used for proper reasons. Its members should not simply back off on that.
I have not seen the outline of what the Government members intend to do for St. Patrick's Day, but it is time they stood up and faced down ridiculous and stupid media comment.
Hear, hear.
We need our people abroad. Never was it more necessary to sell Ireland internationally.
Hear, hear.
Never was it more necessary to promote our economy abroad, and if that means going over there and sloshing horrible-tasting green beer, shaking hands with the ancient order of this, that or the other thing——
I do not know about that.
——or meeting the various brotherhoods then so be it. If that is what it takes to get people to come to this country, invest in this country, buy in this country and have confidence in our economy, the Government would be better off going abroad to wherever the important markets are in a properly organised and effective fashion. I want to see them do that and I will defend it publicly. If it gives cheap headlines to tabloids and irresponsible journalists, so be it. If something needs to be done it should be done.
Well said.
I welcome the Government's announcement yesterday about its plans. However, I would prefer if it used real language, rather than spin, and told it like it is. For a long time, most of us have been saying there was a need for another budget, and now the Government is saying it will do this but is not calling it a budget. It brought in levies and did not call them taxes. People will not buy this. Is it any wonder they are cynical when they are seeing money going out of their wage packets and yet the Government will not call them taxes? This must stop. I also welcome the fact the Government has invited the Opposition parties to contribute. However, it must be a real contribution. There is no point in doing this in a token fashion. The Government has already taken on a number of ideas my party has put forward, and I would like to see it take on more. However, its members must interact in a genuine way and not cynically engage in banter across the floors of the Houses.
Serious questions must be asked about the advice coming from the Department of Finance. Every single figure that has been announced in either House in the last year and a half has been not just wrong but gigantically wrong. The Tánaiste said last week there would be no change and that the public finances were fine, but a week later estimates are saying the complete opposite. This is crazy stuff. No Government should be run like this. We must ensure we have the right advice. If we need further advice let us go and get it, because we need it fairly quickly.
I would like the Government to make a statement on the national development plan and the prioritisation of projects. This was touched on previously and I would like an update in this regard from the Deputy Leader if possible. I am particularly concerned about broadband and where it fits into the plan. It should be the number one priority.
I agree with the previous speaker about the role of tourism, which has never been more important to the Irish economy than it is now. We must protect it. Whatever cuts are being introduced, I ask the Deputy Leader to ensure they do not affect spending in one of the most valuable sectors of the economy. Tourism is important across the island, particularly in areas facing difficult circumstances due to the regional spread of economic activity. Investment in tourism should be maintained to ensure the regional distribution of wealth does not change.
I rise to ask the Deputy Leader to convey to the Taoiseach and the Ministers travelling to the United States for St. Patrick's Day the severe plight of the undocumented Irish there. I know from a reliable source that many of them are now out of work, and if they show their faces they could end up in jail. It is becoming very serious because of the major downturn in the American economy. Similar to what was said by Senator O'Toole, if this occasion were used by the Taoiseach and senior Ministers to convey to President Obama the seriousness of the situation, it would be worthwhile.
I mentioned yesterday the need for a debate on the seafood industry, but I call today for a general debate on the entire fishing industry and in particular the serious plight of trawlermen. I ascertained last night that among the whitefish fleet, particularly in the west and south, 70% of trawler owners are on interest-only loans, which is very serious. In view of the 40% reduction in the fishing fleet due to decommissioning, if this were to continue and if the recession were to last three or four years, we would not have any fishing boats or fishermen.
To give an example, one young fisherman bought a brand new boat in 2004 costing many millions, and with grant support from the Government and the State he ended up with a net bill of €1.5 million, which he hoped would diminish over the years. Five years later that bill is €1.4 million, he is on an interest-only loan, and he is close to handing over the keys of his house to his bank manager in frustration. The fishing industry is in crisis. I reiterate that if help is not provided, in four or five years' time we may have to sell our national quotas to the French, the Spanish or the English, because we will have neither fishermen nor vessels. This is quite serious, a Chathaoirligh.
This morning 1,500 people in Waterford, in a company called Bausch & Lomb, are waiting to see whether they will keep their jobs. It is estimated that more than 150 jobs will go. When this company went on short time a couple of months ago, I asked that the Minister for Enterprise, Trade and Employment intervene with the company to protect the jobs of the workers. To the best of my knowledge, that did not happen. I ask again that the Minister and her officials speak to the company with the aim of protecting the jobs of the remainder of the workforce.
The company provides excellent employment opportunities and it is essential these jobs are retained for the sake of Waterford and the south east. It is incumbent on the Tánaiste to meet the management of Bausch & Lomb to discuss the protection of these highly skilled jobs. It is better to assist a company while it is still operating than to spend a fortune supporting the laid-off workers through social welfare. The Taoiseach spoke about this, but speaking and acting are two different matters. I ask for action.
I welcome the fact that Opposition parties have met officials from the Department of Finance to ascertain the state of the public finances. The Taoiseach briefed the Fianna Fáil parliamentary party last night and, while we are in no doubt as to the seriousness of our current circumstances, we fully support the Government in its efforts. Few parties would take the stand we have taken in advance of local and European elections in regard to the grave international crisis we now face.
You are forced into it.
We must take whatever action is necessary to protect Ireland incorporated. I am confident that Opposition Members will come on board once they see the books.
A new Terry Prone.
I ask the Deputy Leader to arrange a debate with the Minister for Social and Family Affairs, Deputy Hanafin, with a view to improving services at social welfare offices for those who must claim unemployment benefits and assistance. The photograph of queues outside a social welfare office in Cork, which was published in today's Irish Independent, is totally unacceptable. I raised this issue in the 1970s when circumstances were similar and I raise it again today. I ask the Minister to provide proper facilities for those who apply for unemployment payments. The Department of Social and Family Affairs has a variety of premises available to it, such as Citizens Advice Bureau offices, FÁS buildings and community centres. Surely it could take an initiative to avoid the spectacle of upset and depressed people standing in front of their fellow citizens in the rain and cold. A similar photograph was published last week depicting a queue in Dún Laoghaire. This is happening throughout the country and it is time the Minister took control of the matter and provided facilities which allow people to retain their dignity as they apply for their just entitlements. The number of unemployed is rising constantly and people are demanding action.
Like other speakers, I offer a guarded welcome to the Government's decision to introduce a mini-budget at the end of this month. However, even though there will be relief at this decision, the Government does not deserve great credit. Its management of the economy and its attitude towards the crisis in the banking sector simply has been to react to the latest disaster or set of figures. It took the absolutely disastrous set of figures published yesterday to force it to do what it had said it would not do. The reality is that there is absolute bedlam in the public finances. They are completely out of control. If the Government had not acted yesterday, the consequences would have been cataclysmic for various areas of the economy, whether in terms of increased borrowing rates or another run on the banks. The lack of international confidence in Ireland would have increased. The Government has run the economy into this situation and it was reluctant to take action until forced to do so. It is now introducing, under incredible pressure, measures it wanted to delay.
I caution Opposition leaders against falling into a political trap when they examine the books. If they look at the books and make suggestions, they will be blamed for the pain that will be inflicted. The Government is asking for the Opposition's ideas on punishing the Irish people so that it can share the blame. A cunning, cynical, dangerous game is being played and the Opposition should be careful. It is the Government's responsibility to address these problems. I will ask the Deputy Leader a question now.
I would appreciate that.
The trend of the Government has been constantly to find a crutch which would allow it to share the blame. If it is not the social partners who, God knows, will probably be brought back into the equation in the coming weeks, it is the Opposition that will be the crutch, and therefore I beg Opposition Members to be careful.
Yesterday's figures indicate we are very close to national bankruptcy if nothing is done. I urge the Government to take urgent measures now rather than waiting for the next set of figures before responding because all that will do is undermine confidence.
I ask the Deputy Leader if we can possibly hold a debate in the Seanad on the budget in advance of its announcement. Although I am doubtful about it, the Government seems to listen to every dog on the street about the necessary measures, but we are never given the opportunity to outline our views until the budget is published and, therefore, we become irrelevant. If the Government is serious about taking suggestions and a bit of flac, let us hold a debate here in advance of the budget and see whether it takes on board our views.
It was previously proposed that the House should hold a debate on the media. The importance of the freedom of expression enjoyed by a free press in an open society cannot be overstated. It is essential to democracy, but it also brings obligations and responsibilities. The media have an ideal opportunity to play a positive, proactive role in resolving the present crisis. A co-ordinated and co-operative approach is needed if we are to make an early recovery. We should differentiate between responsible journalism and tabloid and frenzied coverage of economic and other matters.
Senator O'Toole put his finger on the pulse of the issue by offering the example of overseas travel by Ministers. I believe that each of these Ministers would prefer to be at home with their families at that time of the year. We should not underestimate the importance of Ministers and Government representatives meeting their counterparts abroad, particularly when, as we all accept, we are dealing with a global crisis. If they do not travel, others will take advantage of the opportunities presented. It is important we do not adopt a negative attitude towards ministerial travel and I hope the Government does not respond to such negativity. Members on both sides of the House who have experience in this area will know that much good can be done by such visits. The Taoiseach's visit to the United States, for example, results in images being sent all over the world and officials have an opportunity to interact behind the scenes. That applies to visits to other countries also. I suggest we hold a discussion on the media not in a critical manner but to present opportunities for co-operation with them in addressing this crisis, which I think is possible. I believe many positive minded people in the media, if the current was with them, would respond to this and would do so quickly. I wish the Ministers the best of luck. I have no doubt the outcome of their trips abroad will be positive.
Last night, the Minister for Finance refused in his response to my Adjournment matter to intervene to assist hard pressed fixed-rate mortgage holders. He also stated that his only role in respect of the banks was to create a regulatory framework, which must be the joke of the century considering how much he failed on that front. Last night we learned of the introduction of a new budget, with an extra €2 billion hole in the bucket.
That is some bucket.
Yes. We keep pouring water in only for it to run out the other end. How much more tax can workers — middle income earners — take? This is a serious issue. There will be anarchy in this country if workers are continually asked to pay while the Government fails to come up with a job creation strategy. The only way to plug the hole in the bucket is to put in place a job creation strategy. The only basis on which I will justify St. Patrick's Day trips abroad is in respect of job creation. This is not business as usual any longer. Every Minister should assure the people and this House that they are going abroad on that basis.
Where is the Tánaiste and Minister for Enterprise, Trade and Employment? She did not intervene to save the jobs at risk in Waterford. Where is her job creation strategy? What is she doing? A week ago she told us our public finances were fine.
Senator Healy Eames must put a question to the Deputy Leader.
I made the point last week in this House that although we have a political arrangement with the North we do not have an all-Ireland economy. We are draining to the North. The Tánaiste has not addressed this issue and will be a failure unless she puts in place a job creation strategy. I ask the Deputy Leader to ensure the Tánaiste and Minister for Enterprise, Trade and Employment addresses this House on her strategy to save this country.
Senator Healy Eames has made her point.
I call for a debate on the emerging reality of a mini-budget. I am conscious that support is being sought across the political divide this morning. Should that divide not be forthcoming, I am certain the Government will continue to do what it must. I have noticed that debate in this House often focuses on what is happening in Ireland. It is not acceptable to consider the Irish economy out of the context of the world economy. We need to balance our books. I would welcome a strong and decisive move on the part of the Minister for Finance to ensure our finances are brought under control. This will provide stability and confidence in the markets. At a time when governments throughout Europe are going around with a cart and asking the financial institutions to bring out their dead, when banks are falling left, right and centre and given the world economy was in serious jeopardy of depression earlier this year, to pretend when debating issues in this House that we live in an economic vacuum is a nonsense.
I would welcome if the Minister for Social and Family Affairs took the opportunity to come to this House to comment on the great improvements in stamping out fraud. The measures introduced by the late Deputy Séamus Brennan and implemented by the current Minister have saved the taxpayer €450 million. The people calling for the elimination of waste and fraud in social welfare are the same people calling for the introduction of measures to eliminate the need for people to sign-on. While it will take time to get our offices in order, social welfare fraud and abuse must be eliminated. This means people will have to sign on.
They will also need to stay out of the rain.
I welcome the call yesterday by the leader of the Green Party and Minister for the Environment, Heritage and Local Government, Deputy Gormley, for Ireland to withdraw from the European Defence Agency, a call I have been making for a long time, in particular since that group, which coyly changed its name from the European Armaments Group, is interested in the manufacture of armaments and in developing an export industry to go into competition with the United States. This, in my opinion, explains some of the energy with which Mr. Ganley prosecutes his opposition to the Lisbon treaty. If the Government does withdraw from the European Defence Agency, and I understand there will be a Cabinet meeting today on the matter although the Government has unscrupulously avoided this issue and has not responded to my questions on it for the past 18 months resulting in my having to oppose the Lisbon treaty, I and other people will be permitted, as we want, to campaign in favour of the Lisbon treaty.
With regard to the budget, like a rose, a budget by any other name would smell as sweet or as sour. We must listen carefully to suggestions from all quarters, including Fintan O'Toole who made a compelling case for an examination of tax relief on pensions. The current cost of this tax relief is up to €2 billion, which is a luxury. This measure should be examined.
We ought to discuss also the report of Transparency International, a motion on which I tabled a few days ago and which is listed as No. 22, motion 35 on the Order Paper today. The Deputy Leader appeared yesterday to be open to providing time for such a discussion. I am not particularly proprietorial and do not necessarily believe we should discuss my motion but we should consider the issues involved.
Perhaps the Deputy Leader will indicate when the Immigration, Residence and Protection Bill 2008 will come to this House. This is nasty, badly drafted and politically corrupt legislation which badly needs to be examined. The Government should take on board the call by the Ombudsman, Emily O'Reilly, that her office be given a role in monitoring the processes by which this is applied. I point out in support of that argument that the Irish Human Rights Commission, even in the state to which it has been reduced by the nasty operations of this Government, and Mr. Thomas Hammarberg, the Council of Europe's Human Rights Commissioner, have advocated this and have indicated that Ireland is unusual in Europe in not permitting these areas to be examined. It is astonishing that the person who dismissed this out of hand is a spokesperson for the Department of Finance. If the Department of Finance, which as various speakers have said cannot get the figures right even occasionally, is to be supreme in terms of human rights, we are in trouble.
I support the call from Senator Ross for a substantial debate next week on the economic issues facing this country. It is important Members of this House have an opportunity, in advance of the introduction of the mini-budget, to examine in detail the options facing the Government and the Oireachtas.
I am concerned that too many of us believe we are playing a game of politics rather than undertaking a full examination of the crisis facing this country, which is in the last chance saloon.
Hear, hear.
I am not concerned about traps being laid by Government. What is involved is much more important. Politically speaking, the public has made an irreversible decision in respect of the current Government. We on this side of the House are challenged to rise to the occasion and to respond to this grave national crisis. The man and woman on the street do not concern themselves with who is implementing measures. They want serious political attention to be given to the financial and economic distress faced by tens of thousands of people. I welcome the opportunity for Opposition parties to bring forth ideas, suggestions and proposals.
Many people on this side of the House and in Opposition in the other House hope to be part of the next Administration running this country. We must rise to the challenge and illustrate what we would do and how we would do it differently. I look forward to a debate next week or the following week when all issues will be up for discussion and we can outline some of the options and choices we would make. We must cast aside political difference and party political fears. It is not an exaggeration to say the country is going down the tubes before our eyes. I have been fortunate enough to be a Member of the Houses of the Oireachtas for over 20 years, as have a number of my colleagues and never in those 20 years, or in the history of the State, have we faced such a crisis. We celebrated the 90th anniversary of the first Dáil some weeks ago, but what we now face is the end of genuine Irish economic independence unless substantial decisions are taken very soon.
I am not worried about the party political side of the equation, I am gravely concerned about the state of the economy and the future of the country. This House has a major reflective role to play. We need to debate for a full week, sooner rather than later, the economic options facing the country. As Senator Ross said, a post-budget debate is a waste of time. It is the sort of political practice and gamesmanship that has got us into the mess we are in. Let us all work together and debate this issue next week. Let us be realistic. If not, we might as well shut down this House and go home.
I welcome the announcement of the mini-budget or whatever the Government will call it. I also welcome the Government's inclusive approach in indicating that it will brief the Opposition on budgetary figures. That is very important, although Senator Ross is right that there is a danger for the Opposition in being brought in too closely. Deputy Joan Burton's call for the publication of the interim papers from the Commission on Taxation to enable Opposition and Government Members to see what the commission proposes to do is a useful recommendation to explore. I echo the calls of other speakers for a debate on the economy in advance of whatever mini-budget or tax increases we face.
On a more positive note, I was privileged to play a part in ensuring that we unanimously passed a cross-party motion calling for the release of Ingrid Betancourt. Will the Deputy Leader consider issuing an invitation from the Seanad to Ingrid Betancourt to address this House? Her release was one of the more positive items of news in the past few gloomy months. FARC is, unfortunately, still holding other hostages and it would be a celebration of her release to invite Ingrid Betancourt, as a former Senator from Colombia, to speak to us. It would also serve a very useful purpose of highlighting the plight of the hostages still held in appalling conditions in Colombia, who do not have the profile that she had. Hearing her speak would put our troubles in context.
I had the privilege of sharing a platform with Archbishop Tutu recently at a meeting in Trinity College where he pointed out, very memorably, that people in South Africa wish they had our economic troubles. To hear a speaker from Colombia — I have heard her speak with passion and eloquence since her release — who was imprisoned for years in conditions that threatened her health and her life, and who was deprived of the company of her family, would be inspiring and would be a very nice gesture on the part of the Seanad. I would welcome the Deputy Leader's thoughts on that suggestion.
I endorse some of the points raised by Senator Bradford. It is important that we all work together. All heads must work on this serious issue, the fact that we must increase taxation and cut expenditure. Nobody knows what will come at us next week. I would welcome an all-party debate in this House to put all our heads together. I am sure many ideas would come from the other side that I would like and many I would not like. Members across the floor might perhaps welcome suggestions we could put forward. We should have that ongoing debate as soon as possible. I do not want the International Monetary Fund to decide how best we can do business. We must sort this out for ourselves and we will do so. We did it before and we will do it again.
The Senator's party did a bad job of it.
We have to work together to do this. There is no other way.
In agreeing with Senators Ross and Bradford, it is a pity there was no partnership last weekend at the Fianna Fáil Ard-Fheis.
The Senator must address the Deputy Leader but not about Ard-Fheiseanna.
It is not a mini-budget that the Government intends to introduce, it is a crisis budget, which is caused by bad management. The new unemployment figures show that 10.4% of our citizens, a record high of 354,000 people, are unemployed this morning. Our fellow citizens have been let down. I ask the Deputy Leader as a matter of urgency to hold an all-party debate on what is best for the country. If the Government really wants co-operation and bipartisanship, let us see it and stop the rhetoric and cnáimhseáil.
Will the Deputy Leader invite the Minister for Social and Family Affairs to the House because it is a disgrace and an abomination that the national carer's strategy has been deferred or postponed? It is a gross insult to the 160,000 people who care for our fellow citizens. Why is the strategy not going ahead? Why not publish the document and discuss and consult on it? What is wrong with that? The excellent work of our carers saves the State €2.1 billion per year.
Will the Deputy Leader hold a debate next week on the promotion of Ireland for St. Patrick's Day? If the Government is serious about the promotion of Ireland and the rekindling of the Celtic nation, the Deputy Leader should invite the leaders of our party, the Independent Group and the Labour Party, and the party leaders in the other House to go across the world with Ministers on behalf of Ireland. If the Government really wants to promote Ireland it should invite Deputies Enda Kenny and Eamon Gilmore to the White House too and let us collectively promote Ireland. Senator Healy Eames is right that we should focus on job creation and job protection, not the rhetoric of empty vessels from the other side of the House.
I too support the call for a debate this week or next week on a mini-budget or, as the Opposition calls it, a crisis budget. Let us call it what we want, we will need it. This is a crisis, as figures released last night show, and it is a mini-budget.
I welcome Senator Bradford's calm, balanced approach and I look forward to seeing the fruits of that when we debate the crisis. I will watch with interest to see if we get that from the Opposition. The Senator sitting beside him could do with taking a little calmness and clear-headedness from Senator Bradford.
I am very calm and I resent that remark. The Senator is poking fun at us over here but her party has been in government for 11 years and it has treated our people disgracefully. I am very calm.
The Senator said that very calmly.
Those are the kinds of snide remarks that have got us into trouble for the past 12 years.
I do not want people talking across——
I am reflecting the anger of the people of Cork and Ireland.
The Senator should put a question to the Deputy Leader through the Chair and I do not want people making snide remarks across the floor. That has to stop and it will stop — the door is not locked.
I thank the Cathaoirleach. I am——
I am getting tired of Senator Feeney's remarks.
This morning there was an announcement that for the first time ever the Medical Council is holding a fitness to practise hearing in public. This is a result of the Medical Practitioners Bill 2007 which provides for the present position whereby the majority of members of the Medical Council are lay people. Can I ask the Deputy Leader to organise a debate in which Senators can call on other regulatory bodies to conduct some of their fitness to practise inquiries in public, as the Medical Council is doing? I refer in particular to the bodies that regulate this country's legal profession.
Hear, hear.
I would like to conclude by again calling on the Deputy Leader to organise a debate on eating disorders and their consequences.
A Japanese businessman once said to me that if Japan had a product like St. Patrick's Day, it would use it to increase Japan's profile, give more opportunities to Japanese businesses and bring more success to the Japanese economy. Therefore, I support Senators O'Toole and Ó Murchú, who have said we should not ignore the great opportunities for success offered to us by St. Patrick's Day. We should not be afraid to go abroad and take advantage of the occasion of our national holiday. I do not agree with those who suggest the Tánaiste is in a position to "create" jobs. Her job, as Minister for Enterprise, Trade and Employment, is to develop an environment in which jobs can be created by others. When I hear that the Government is trying to "create" jobs, I have some fears. We should recognise the opportunities afforded to us by St. Patrick's Day. As Senator O'Toole said, we should make it clear that St. Patrick's Day may be used to improve Ireland's profile and encourage investment in this country.
I support part of what Senator Ross said to the Deputy Leader. We need a debate on the economy before the budget is announced. In the past, such debates have usually taken place immediately after the budget, which is too late. We want to debate these matters now. If a business suddenly discovered it was about to have problems paying wages at the end of the week or the end of the month, that would be a crisis. That is the sort of crisis we have at the moment. We need to avoid the danger of State cheques bouncing over the coming year. We need to take steps. I do not accept the point made by Senator Ross about an issue on which Senator Bradford is correct. When the Government faced a crisis in 1987, the Opposition said it would support any tough steps it decided to take. I strongly accept Senator Bradford's words on this matter.
Hear, hear.
Hear, hear.
This House should debate the crisis that we recognise we are facing on this occasion. We should not concentrate on the factors that caused the crisis. While they can be pointed out, we should not spend too much time on them. We should look to the future. If we are to get out of this crisis, we should not just take short-term steps. We need measures that will help us in the short term without damaging us in the long term.
I support the view that we should have a week-long pre-budget discussion. The best propositions that emerge during the debate should be taken into account when the budget is being drawn up. When we examine the grave crisis that is developing on foot of the fall in the Exchequer returns, we cannot escape the reality that last year's decision to increase the rate of VAT has led to an exodus of shoppers across the Border and overseas. I ask the Deputy Leader to take that on board and raise it with the Minister for Finance. While it is difficult to quantify the huge drop that has taken place, I suggest it needs to be factored into the discussions that will take place over the next few weeks. We need to estimate the degree to which the increase in the rate of VAT led to the haemorrhage of money out of this country over the last couple of months. On the basis of my personal experience, having observed the queues in towns like Newry and Enniskillen, I suggest the increase in the VAT rate contributed significantly to the reduction in the Exchequer returns. The own goal we may have scored needs to be analysed.
I welcome the decrease in energy charges, for which I had been calling for a long time. I contend that the question of price control needs to be examined critically. If we can make changes that generate more spending, that will have a positive effect on the Exchequer returns. The issue of waste in this country, which was mentioned earlier, also needs to be analysed. A tighter auditing process is needed. Those who work in this country's extraordinary and excellent native Civil Service were recruited from schools and universities through the most rigorous processes. Our Civil Service has been supplanted and overcome by a network of ministerial advisers. The jobs of many civil servants are now being done by extra personnel in the offices of Ministers of State. A whole phalanx of people are doing work that should be done by the native Civil Service, which has the genius to do it. The immediate elimination of that nonsense would save significant money. That critically needs to be considered. If we eliminate waste and fraud in a number of areas and tighten auditing processes throughout the country, enormous savings can be made. While I am calling generally for an overall debate at this time, I can give the Deputy Leader some specific examples when I speak to him privately later today. A focused debate needs to take place over the course of a week. We should all come up with practical suggestions. I have cited a couple of examples. Many more will be thrown up if we have a week-long debate.
Most, if not all, Senators, referred to yesterday's Exchequer returns. Several Senators suggested we should have an anticipatory debate on possible budgetary measures. Many speakers speculated on the Government actions that will be taken after the Opposition parties and the social partners have been consulted. On the question of whether the actions in question constitute a budget, I think it is clear to say that it is a rose by any other name. Even before the onset of the current economic crisis, it had long been suggested that the theatre of the Budget Statement, as an annual event during which all decisions on taxation and social welfare are announced, needed to be changed. As I recall, Fine Gael's spokesman on finance, Deputy Bruton, suggested in a reform paper that the era of the annual budget needed to pass into history. I agree that all Governments need to have the flexibility to anticipate events, to react to them as they happen and to introduce new fiscal measures on foot of them.
The reality is that Exchequer returns are produced monthly rather than daily or weekly. The returns for February 2009, which were published yesterday, when taken in addition to those for January 2009, show there has been a decrease of €1.8 billion in anticipated tax receipts for the first two months of the year. If we factor them across an entire year, it is clear that a gaping hole will need to be addressed. The statement made by the Government yesterday, that further measures will be needed by the end of this month, represented the first step in that process. Certain measures are needed in the taxation area. I am confident that following the report of the Commission on Taxation, which is examining wider aspects of taxation policy, including equity and efficiency, we will have a taxation system that is much fairer than the system we have at present. It has to be put into context. The percentage of national income accounted for by tax receipts is far smaller in this country than in most other European countries. The relevant figure in Ireland is approximately 35%, whereas it is over 40% in most European countries.
What about stealth taxes?
Some Scandinavian countries collect up to 50% of their national income in taxes. The level of tax a state collects determines the level and quality of public services it has. Not only do we need to bridge the gap in current public expenditure, but the issue of taxation needs to be addressed by all political parties if we want to develop a better society and increase the quality of public services. Those who think that some elements of our tax system are unfair believe there should be a focus on how the tax burden is distributed. The Exchequer figures published yesterday show income tax receipts have fallen by 7% and that there has been a huge decrease in value added tax receipts. Our system of taxation should be reformed so we are less reliant on taxes such as VAT and stamp duty on the purchase of property. We should concentrate on ensuring the tax burden is more fairly distributed across a range of taxes. There needs to be proper equity within the taxation system.
Some 28% of workers pay no income tax. Our higher rate for very high income earners is relatively low. As interim measures, I hope these areas will be addressed and will help with the shortfall we have in the meantime. An anticipatory debate on the budget would be very good. The Government and the country would benefit from the collective wisdom in this House and it should contribute to the necessary debate. I will see what is possible in that regard.
A number of Senators raised the question of St. Patrick's Day trips by Ministers. The number of trips will probably be smaller than in previous years, but the focus of those trips will be aimed very much towards attracting investment into the country and selling the country as a destination for goods and services and for the establishment of new industries. A secondary element to these trips is to recognise, identify and support Irish communities abroad. It is our national holiday and that is an important function of Government representatives when travelling abroad.
Senator O'Donovan raised the question of the undocumented Irish finding themselves in an economic bind because of the scale of the recession in the United States, and this needs to be added to yesterday's calls for a particular debate and approach from the Irish Government in addressing these needs. He also asked about the white fish fleet and the financial situation of many boat owners who are able to pay only the interest on very substantial loans and the effect that has on coastal communities. This needs to be taken into account because we need to develop and support a fishing industry for our economic future. Senator Kelly also made that point on the development of the tourism industry and time can be given for a debate on it in the House.
Senator Cummins asked about the situation in Bausch & Lomb and his concerns will be passed on to the Tánaiste and Minister for Enterprise, Trade and Employment. The Government made a policy decision to establish a €100 million fund to protect existing jobs and I presume this is one of the areas where the fund will have an effect. Returning to the general debate on the Exchequer returns, Senators Ross and Bradford made several statements. Senator Bradford made a largely positive contribution, but the use of phrases such as "national bankruptcy", "last chance saloon" and "going down the tubes"——
They make good headlines.
It might help the individuals concerned, but we heard a very positive comment this week from the President of the European Central Bank, who talked about our general ability to work ourselves out of this crisis. That international view is the type of signal we should be working on. If we keep going in the direction we have been taking on lower tax receipts and inability to meet the gap, we might come close to the types of situations indicated by those Senators, but it is far from fair to indicate that we are there now or to create an impression that there is an air of hopelessness about this. I have faith in the ability of the people to meet the economic challenges ahead but it can be done only in a non-partisan, non-point scoring way. If we have this anticipated debate it will be a forum to allow such views to be expressed.
Senator Ó Murchú asked for a debate on media responsibility which follows from a number of requests made yesterday, and time should be provided to allow that to happen. Senator Healy Eames talked about mortgage protection. She should be aware that in the recapitalisation legislation passed by these Houses there is a provision that over a 12-month period there will be no repossessions. This morning there is a direct meeting between the Minister of State with responsibility for housing, representatives of the Irish Banking Federation, the Financial Regulator and other interests to see how this can be pursued to ensure it has a practical effect and that the fear of house repossessions does not hang over many of our citizens.
Senators Hanafin, Leyden and Buttimer mentioned social welfare services and social welfare fraud. Several points need to be brought to the attention of the Minister for Social and Family Affairs and provide the basis for a wide-ranging debate in this House. The unacceptable delay in new entrants to the job seeker's allowance and benefit has been caused by the numbers of people losing their jobs. Since the beginning of this year 1,000 people per day have lost their jobs. That represents 3% of those who were at work, and the scale of that to be dealt with by social welfare officers has caused the Minister to transfer civil servants from other Departments to deal with the applications. It is hoped the new system will ensure the benefits are given as quickly as possible.
Senator Norris talked about the European Defence Agency and the Minister for the Environment, Heritage and Local Government's views on that issue. In developing a rolling declaration that would become a protocol in a future European Union treaty for the accession of a country such as Iceland or Croatia, the issue of foreign and security policy may convince a significant number of people who voted "No" in the last referendum to vote "Yes" subsequently. The Minister's comments were an effort to inform that. Senator Norris also mentioned Transparency International, which was referred to yesterday, and there is no difficulty about a debate on that. The Immigration, Residence and Protection Bill awaits Report Stage in the Dáil and will come to this House once it is finished there. Senator Norris referred to comments by the Ombudsman seeking a role in that area, and legislation about upgrading the functions of the Ombudsman's office is pending, so we will have two opportunities to examine that area in discussing legislation in this House.
Senator Bacik asked about publication of the Commission on Taxation report, which will be very helpful in the next year in defining what we should be doing regarding taxation. If there are completed papers, they can and should be made public and that will help our immediate situation. She also made a very helpful suggestion on using the debates we have had in this House in support of Ms Ingrid Betancourt's plight and the adversity she faced as an individual as an example to this country in difficult times. Considering some of the negative comments that were made today, it is fair to say we live on a planet where one third of the population lives on less than $2 per day. Despite the fall in economic growth and growing unemployment, this is still a very rich country in global terms and we need to be reminded of that from time to time. The mechanism for a request such as Senator Bacik's is the Cathaoirleach and the Committee on Procedure and Privileges. I am sure the committee will look favourably on that.
I thank the Deputy Leader.
Senator Buttimer talked about the unemployment figures and the promotion of Ireland through St. Patrick's Day. He also referred to the carers strategy. The postponement of the carers strategy is based on the fact that the production of the document to date is far from satisfactory. It does not meet the future needs of carers and it needs to be considerably revamped. There will be a future document. I have no indication on when that will be prepared but I will try to get that information to Senator Buttimer.
Senator Feeney talked about the willingness of self-regulating bodies to hold fitness to practise hearings in public, commending the example of the Medical Council. We dealt with the Legal Services Ombudsman Bill 2008 yesterday. There were calls yesterday as well that we have a debate about regulation in general and a debate on that area might bring this point to the fore. The Senator repeated a call made several times that there should be a debate on eating disorders, which I will bring to the Leader's attention when he returns.
In line with the contributions of other Members, Senator O'Reilly made the suggestion, which may be something we must consider, that the structure of an anticipated debate on budgetary measures that are needed might have to take place over several days. I will mention that as next week's business is being prepared.
Order of Business agreed to.