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Dáil
‹ Leaders’ Questions.

Unemployment and economic recovery

Summary

Enda Kenny attacks the Government over soaring unemployment, deficits and its lack of an economic plan. The Taoiseach attributes the crisis to the global recession and defends forthcoming tax increases, sacrifices and corrective measures to restore growth.

In May 2007, the numbers on the live register were 104,000. In April of this year there are 373,000 plus on the live register, an increase of 219,000 which is more than double the population of the Taoiseach's Laois-Offaly constituency, at 103,673. It is obvious the country is not working under this Fianna Fáil Administration. There is no plan for the future of the country, no plan for jobs and no plan for the economic development of Ireland. The Taoiseach tells us we will have 400,000, and possibly more, out of work by the end of the year and there is a drop in living standards of 10% or 12%, yet we are to have a budget in a little over one hour's time in which the people will be penalised for the mistakes of the party in office. In the context of this afternoon's budget, I challenge the Taoiseach to say whether he is prepared to put that budget to the people and let them decide in a general election who they want to lead the country out of the economic morass and mess caused in the main by his party in government.

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Hear, hear.

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Deputy Kenny will be challenged sooner.

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Take it easy, Johnny.

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John O'Donoghue An Ceann Comhairle Fianna Fáil

The Taoiseach without interruption, please. Allow the Taoiseach to reply to Deputy Kenny's question, please.

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The Irish people are aware of the serious challenges faced by our country and of what is happening right across the world. This is probably the biggest recession in 80 years. This country has not been immune and in fact it has suffered more than most. Today's budget is another step by this Government — and I hope with sufficient support from the House — to enable us to get on with the business which the people expect us to do, to make the necessary adjustments. I believe the people are ready to take whatever sacrifices are necessary in the interests of the next generation and in the interests of getting this right over the period ahead. They know there is no silver bullet, no immediate answer to some of these questions but we will certainly put forward a strategy in the coming years that will outline how we can bring back order to our public finances as this is fundamental as a pathway to economic recovery. We will also indicate our intended strategy to ensure that the banking system provides us with the necessary financial stability to enable Irish business to get on with protecting as many jobs as it can in the most difficult operating climate for many years.

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The Taoiseach might get a silver budget and go to the country.

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As usual the Taoiseach will not answer the questions in here. I agree the Irish people are well aware of just how serious is this problem. I agree that the Irish people know well who caused this problem. I agree that the Irish people have convicted Fianna Fáil and they are waiting for them but Fianna Fáil does not have the courage to rise to that challenge politically.

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Hear, hear.

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At 11% and rising, Ireland's unemployment rate is now higher than Germany, France, Italy and the Netherlands. A total equal to more than twice the adult population of the Taoiseach's constituency of Laois-Offaly has become unemployed in 18 months. The EU estimates that Ireland will have a deficit of 11% of GDP this year. France is expected to have a deficit of 5.4%, Spain a deficit of 6.2% and Greece a deficit of 3.7%. Greece has been given four years to sort out its problems and the Taoiseach's Government has been given five. The global competitiveness report which is compiled every year reported that the quality of Ireland's infrastructure dropped nine places between 2008 and 2009 to become 64th in the world. We were the fifth most competitive country in 2000.

I listened to the Taoiseach's comments at the weekend about codding the people. I put it to him that in May 2007 the greatest con job of all was pulled by him as Minister for Finance and his predecessor as Taoiseach when they put out advertisements in the national newspapers to the effect that 97% of the taxpayers of Ireland would be better off under Fianna Fáil. I note from the communications unit the interview given today by the Minister of State, Deputy John McGuinness, in which he said that in respect of the last budget the two Brians made a bags of it and that it was unfair. I am not a supporter of Deputy McGuinness and I do not know if the Taoiseach heard the interview but that is what he said today. He said the two Brians made a bags of it.

We are aware that the country is not working under Fianna Fáil. Retail shops are closing down, small businesses cannot get credit and 1,000 jobs a day are being lost. Young people are forced to find a place in the world where they might find some work because of the despair and hopelessness they are experiencing here. I challenge the Taoiseach again; will he put this budget to the Irish people in a general election and give somebody a mandate to lead this country out of the mess that he and his people over there have created? Is he prepared to do that or is he not?

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Deputy Kenny had a mandate for the last election.

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I have already explained to Deputy Kenny that the House will decide when it divides whether there is sufficient support for this budget and I believe there will be. Fine Gael had a programme at the time that sought to spend more. Based on the Deputy's tax proposals it was true that people would be better off under us than under his rule.

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That is totally untrue.

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We live in a totally different world than that of May 2007.

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It is the same for Germany, where growth will be down by 5% this year. The industrial powerhouses of the world are going through a recession the likes of which has not been seen in very many years. The people know that.

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With regard to what must be done now, the people are prepared to accept whatever impositions are necessary to get us back on the pathway to recovery. That is my belief. It will begin when the Minister for Finance, Deputy Lenihan, makes his——

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Go and ask them.

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He is the reincarnation of Judas.

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I listened to Deputy Kenny with respect to what he had to say.

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John O'Donoghue An Ceann Comhairle Fianna Fáil

Deputy Kenny must listen in silence until the Taoiseach is finished.

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The moment I start to speak there is a predilection to continue interrupting which does not add to the dignity of the House and does not impart any further relevant information.

We have rising unemployment figures because of the recession and because we earn our living on the basis of our exports and there is less demand for our goods and services now than in the past. That situation has been brought about by this recession. The important point is that we will come through this recession as we have in the past and will do so by taking whatever corrective measures are necessary.

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Jim O'Keeffe Deputy Jim O’Keeffe Fine Gael

Now the Taoiseach tells us this.

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This will be done over a period of years, given the scale and magnitude of the challenge facing us. It will involve people having to take some steps back in order to go forward again. It will involve an imposition. Unlike Deputy Kenny, I say to the people openly and honestly that there will be a greater imposition of tax and a greater degree of sacrifice required of all of us. At the same time, it is far better to be straight and honest about that.

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Like they were in 2007.

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They filleted the economy.

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There was no honesty.

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The Taoiseach should look up the meaning of honesty in the dictionary.

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John O'Donoghue An Ceann Comhairle Fianna Fáil

I call on Deputy Gilmore. Deputy Kehoe, this is Leaders' Questions.

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The Taoiseach is leading the House astray by talking about honesty. He never talked about honesty in his life.

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John O'Donoghue An Ceann Comhairle Fianna Fáil

On Leaders' Questions, only party leaders are allowed ask questions.

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