Government response to health and economic crisis
Eamon Gilmore criticises trolley numbers, proposed health-service cuts, banking uncertainty and the absence of an economic recovery plan, later asking about the Dáil recess and bank recapitalisation. The Taoiseach defends the Government’s record, says negotiations and social partnership will address the crisis, and promises to protect taxpayers while pursuing reforms and economic recovery.
The Taoiseach seems to think that things are fine in the health service. Yesterday there were 390 people on trolleys in accident and emergency units. That is just ten less than the number who were on trolleys on the day that the Minister, Deputy Harney, announced an emergency in accident and emergency in 2006.
On Wednesday last, the HSE published a service plan which stated that there would be €500 million cut from the health services and yesterday it emerged that the figure is now closer to €1 billion. There are 500 beds already gone out of the health service and it is proposed to remove another 600, that is, 1,100 beds. It costs €200,000 to provide a bed, in other words, €220 million that has already been spent in providing hospital beds will not be used under this plan.
We are faced with a situation this morning where the Taoiseach or his deputy will come in here tomorrow morning to propose that Dáil Éireann be suspended for six weeks — that we go out of business for six weeks — at a time when the country is facing its worst economic crisis, when our banks are in crisis and at a time when Ministers, including the Minister for Health and Children, are seeking additional cuts in services. This country needs a Government and leadership. It needs people who have got a handle on the problems that are facing the country and the people. It does not have that.
What we have——
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——is a Government that is politically and economically dysfunctional, that is adrift and that is now staggering exhausted to the Christmas break.
One thing after another the Taoiseach is not getting right. He has not got the banks right. He told us on Sunday that there was going to be a €10 billion rescue plan and when I asked him direct questions on it yesterday, he could not answer a single one of them. We are no wiser today about what he is going to do about the banks than we were last week.
On the economy, the Taoiseach stated two weeks ago we did not need an economic recovery plan. At the beginning of this week he stated he had such a plan. We still have not seen it. We are now told it is some kind of a framework. When will we see this economic recovery plan that the Taoiseach has been talking about and dining over in Farmleigh? The problem is that the Taoiseach is not governing. The country has serious economic, social and service problems that are not being addressed by his Government and people are becoming increasingly depressed by that.
Everybody knows that the country is facing enormous challenges and economic difficulties and people are prepared to step up to the plate and to address them collectively. However, the problem we have in this country is that we do not have a Government which is giving leadership and direction and providing any sense that there is a solution and that we can get through these difficult times.
Is the Taoiseach serious about closing down the House for six weeks in these times? When will he tell us what the Government will do about the banks? When will we get the detail of these health cuts about which the Minister for Health and Children is talking? When will we see the economic recovery plan about which the Taoiseach has been talking?
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There are more questions, as far as they want to go.
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I reject the assertions that are being made by Deputies Gilmore and Kenny continuously in this House and that provide the soundbites for the daily business here.
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Deputy Gilmore spoke about people being prepared to step up to the plate. I believe people are prepared to step up to the plate and when they do, under the social partnership process, I will be interested to see what the Opposition in this House will do. The Opposition all agree with everything in theory but when it comes to practice, they oppose everything on every day, and they have no alternative.
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With regard to the framework plan and what Deputy Gilmore stated about economic recovery——
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Deputy Gilmore was listened to in silence. The Taoiseach must be listened to in silence as well.
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What was that, Deputy O'Dea, about the Blueshirts? He himself is wearing one.
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Another leader in the Fine Gael-Labour benches.
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Deputy O'Dea is wearing a blue shirt.
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The Sunday Independent will hear from Deputy O’Dea but we do not hear anything from him.
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We heard Deputy Ring was moving to the Labour Party.
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On the other points raised by Deputy Gilmore, on the question of economic recovery, the Government has based its programme on the agreed programme for Government. A new economic situation has emerged over the past six months and we will set out a framework which will shape the debate around the social partnership talks that will take place in the coming weeks. What we must do is rely on some of the strengths of this economy which we have built up over the past ten years. The totally negative way in which this economy is being portrayed in every respect by the Opposition is not a fair appraisal of an economy that is under stress and——
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——faces huge challenges, but one that has some strengths it can market and utilise.
With regard to the recapitalisation of the bank, I made the point yesterday that the negotiations between Government and banks continue and that we will protect the taxpayer in respect of any exposure in which it involves itself. We will do that in the way that we have done it up until now.
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When will they be walking the plank? That would be one idea.
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We will continue to protect the taxpayer in the context of trying to maintain confidence and stability in our banking system.
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Look at the Taoiseach's backbenchers.
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With regard to the final matter Deputy Gilmore raised, it is our intention in the Government to continue to lead. It is our intention to engage with the social partners and to provide ourselves with the means by which we can deal with these challenges. These challenges will not be dealt with in the partisan way in which Deputy Gilmore wishes to deal with them. They will be dealt with through social partnership where we will set a credible timeframe within which health can be restored to the public finances on an agreed basis, which is the best and only way forward to deal with the magnitude of the challenge that faces us.
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Will Deputy Cowen be here to do that?
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I am not sure there is any leadership there anyway.
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The Taoiseach's problem is not the Opposition.
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Let Deputy Gilmore put his question now please. Put your question. Deputy Gilmore, without interruption.
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The Taoiseach's problem is the Government that he is leading. It is not doing its job.
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You know a lot about co-operation. We have memories.
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The Taoiseach received more co-operation from the Opposition than any other Government in a long time and, frankly, a lot more than he deserves.
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He received co-operation from the Opposition on Lisbon, when a problem arose last week in regard to the pig industry and generally over the past several months in respect of the economy.
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The Government received the Opposition's co-operation——
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The Deputy speaks out of both sides of his mouth.
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That is good coming from Deputy Dempsey.
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As far this party was concerned, we have turned out to be absolutely right in terms of the criticisms we made. What the Taoiseach is seeking, and what he will not get, is a silent Opposition.
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He does not want a Opposition at all. He wants silence.
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The one thing that constrains me in saying what I really want to say about the incompetence and the lack of drive, initiative and effort on the part of the Government, is that I might cause damage by doing so.
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That is the biggest constraint that I have.
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I will be absolutely clear lest there be any doubt. This Government is appalling. It is a deadbeat Government.
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It is not able to lead this country out of the problems it created in the first place.
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It has driven us into the worst economic problem the country has experienced in decades.
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Deputy Gilmore just comes here to criticise.
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It has no idea about how to get out of it.
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I asked the Taoiseach four questions but with all his bluster he forgot to answer them. Is he serious about closing the Dáil for six weeks during this very difficult period? When will we be told exactly what he intends to do about the banks? What cuts will be made to the health service, when will they be outlined to us and will we have an opportunity to debate them or is it his intention to reveal them when the House is closed down for six weeks? Finally, when will we see the economic recovery plan? There is no point in telling us about discussions with the social partners in regard to the plan. It is the Taoiseach's responsibility to produce it. Neither is there any point in telling us that negotiations have been entered into with the very same bankers who got us into the banking problem in the first place.
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Deputy Gilmore has asked the questions, so let the Taoiseach answer.
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When will the Taoiseach tell us what he intends to do about recapitalising the banks?
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I have already answered Deputy Kenny regarding the health situation and have indicated that the need for more efficiencies and effective delivery of services is a critical part of maintaining services in the health service next year. That is on the basis that €14.7 billion is being made available to the health service, an increase which takes account of the €580 million cost of the nursing home subvention scheme over this year. Negotiations are ongoing between management and unions and there is every indication that we will achieve the work practice changes necessary to ensure that we have flexibilities, deliver services to the front line to the greatest extent possible and minimise adverse impacts on patients. That is the purpose of the exercise.
In regard to the banks, I have outlined the situation to the Deputy. The recapitalisation policy was enunciated in detail last Sunday. Proposals must now come from the banks with which we are in negotiations. It must be understood that the only interests I have are the stability of the financial system so that we have a banking system that serves the modern economy we have built and protecting the interests of the taxpayer in that effort. These are our primary considerations in dealing with the matter. We have indicated that proposals should be brought before the Government in early January.
The committees will return on 7 January and we will be involved in trade delegations to support Irish industry abroad. We will ensure the Government returns on 7 January. The Government is working hard, despite what Deputy Gilmore wants to say.
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Bring the Dáil back on 7 January.
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The Deputy can do all the name calling he wants because he is good at it. That is part of the rough and tumble of politics and I have no problem with it.
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The Taoiseach seems to have a problem with it.
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However, I assure the Deputy that the Government will work hard on maintaining this country's reputation as a good economy, a place to do business and a location where enterprise can prosper. We also know that an Irish recovery can only happen when a global recovery takes place because this is an open economy and we are affected by what happens abroad. We are not total masters of our own economic destiny in every respect——
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——when one considers our membership of the eurozone and the fact that exchange rate policy is not decided here.
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We also know we have inherent strengths on which we can build. While we experience these difficulties in the economy, can we please desist from suggesting that the past ten years were an illusion and that we did not create the numbers of jobs that were created or improve the quality of life of our people?
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We certainly did these things. We are now facing higher unemployment levels and we need to put in place policies that will help us to deal with the situation. This phase will pass. We have to indicate to the public where this economy can be in a number of years if we take the correct decisions now. I believe the correct decisions — the elephant in the room if Deputies would prefer — involve the discrepancy between expenditure and tax revenues which has emerged during the course of this year in particular as a result of the international downturn.
We have to be prepared to work with the social partners on finding a way to deal with the problem so that everyone gets behind the wheel to ensure we come through the difficult time that lies ahead. That is the approach of the Government and it is the right strategy. It is not a matter of instant gimmicks, soundbites for the media every morning or saying that we should have change but we will oppose change every time it is proposed.
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I am not asking the Opposition to be silent. That is a matter for Opposition Deputies.
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They are capable of articulating their own points of view and that is a part of our democracy.
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However, I will not have it said when I defend this Government's record that I am suddenly attacking the Opposition.
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It has been a proud record and now that we have entered a new situation, this Government will ensure our response is appropriate to the challenges we face.