Speech by the Minister for Education and Science, Batt O'Keeffe TD, at the ASTI annual conference, Malton Hotel, Killarney, Co Kerry.
A Uachtaráin agus a dhaoine uaisle.
These are difficult times for you as teachers and for me as Minister. However, I'm genuinely pleased to be here with you today, particularly as this is the centenary year of the ASTI.
It gives me the opportunity to acknowledge the contribution your association and its members have made - and continue to make - to education in our country.
Your conference understandably focuses on education issues of direct concern to you as teachers. While that's also my focus, there are other compelling circumstances.
Wider context
This is a time of unprecedented difficulties for our country and all her people. Against this background, unfortunately there can be no sense of business as usual. My talk to you today would be less than honest if it didn't reflect the starkness of our national situation.
I know that people have been particularly frightened by the speed and extent of change in the economy. We've gone from a situation where we had growth in the economy of 6pc in 2007 to expected contraction of nearly 8pc this year - the sharpest fall on record.
The real issue behind any economic statistic is the impact on people across the country. I know that in many homes there are real worries about jobs and future income. People are hurting.
Supplementary Budget
Last week, the Government introduced a supplementary Budget, the like of which most people have never seen before. Or ever thought would be needed.
You're understandably angry about some of the decisions we've made. I understand that anger.
But action was required in the national interest. Action that will secure Ireland's social and economic future. I also fully accept that the recent Budget measures come on top of other unpopular measures in the past few months.
I want to acknowledge that some of the decisions we have taken will cause real challenges for you in your professional roles as principals and teachers. And also personally for you and your families. I'm not underestimating these challenges.
But I'm asking for your cooperation during these difficult times for our country. I know you'll have all read and heard endless economic statistics in the media in the last few days so I'm not going to dwell on them today.
But there are a few basic facts that I want to mention that explain the need for the measures we took in the Budget.
Our tax income has dropped by more than a quarter since 2007. Even with tough expenditure decisions, public expenditure is increasing due mainly to unemployment related spend. We'll still have to borrow EUR20 billion this year alone.
Over a fifth of current expenditure - on teachers, schools, nurses, doctors, hospitals, gardaí - will be borrowed. There's a huge gap to be bridged.
Budget measures
In order to deal with this situation, we've to increase our revenue, cut our expenditure and borrow only what's absolutely necessary. There's simply no choice.
Tax increases are required and I know they're not easy to accept. An absolute priority for Government in making decisions about tax was to be as fair as possible. People rightly expect that those who earn most must contribute the most.
An Economic and Social Research Institute analysis of total budgetary measures for this year shows that they are strongly redistributive. This basically means that they prioritise the less well-off. Those with more pay more.
Just to illustrate this point, the top 1pc of income-earners will contribute nearly a quarter of all the money raised from the income levy. Over 600,000 people, or 30pc of income-earners, are still exempt from the levy.
We also had to make adjustments to expenditure. Taking into account all the measures, we're cutting expenditure by EUR4.8 billion. Agencies and bodies are being rationalised. We've targeted administrative expenditure where possible and I'm continuing to look for ways to do things more efficiently and effectively in my Department and the bodies and agencies for which I'm responsible. However, given the scale of the savings that have to be made, there are no easy options.
Economic recovery
As part of the Budget package, we're also taking a range of measures to stimulate economic activity. While we had to make some cuts to capital spending, the Government is determined to maintain high levels of capital investment to provide better public facilities, support employment and improve competitiveness.
We expect savings of 10 to 20pc in the cost of projects so we'll be getting much better value for money. We'll be able to do more with less.
Discussions are ongoing with the pensions industry on a new infrastructure fund to support projects in schools, higher education, hospitals, roads and public transport. We're investing over EUR610 million in school buildings this year.
Seventy-eight projects that have been given the go-ahead to go to tender and construction will be proceeding this year. I'm making provision for a Summer Works Scheme this year. Eighty million euro will be invested in schools around the country under the scheme this year. A further EUR20 million will be spent on energy conservation projects in schools as part of the Summer Works Scheme.
I want to emphasise that there will be an equitable spread of building works across the country under these programmes. This major capital investment will, of course, sustain a substantial number of much-needed jobs in the construction sector.
The Government is also taking measures to maintain existing jobs and stimulate job creation through the creation of an Enterprise Stabilisation Fund targeted at internationally trading businesses.
We're also providing 7,000 additional places in higher and further education to give unemployed people the opportunity to develop their workforce skills.
International context
The consensus is that the world economy will begin to revive in 2010 bringing a return to growth in Ireland in 2011.
In the meantime, we must restore international confidence in Ireland by getting the message out there that we still have considerable strengths and that we're taking the right action to correct the problems in our economy.
We can get through these difficult times. It'll be a real strength if we can find a way of working together with a shared understanding about what we need to do to secure our future and that of our children.
There are vocal critics of national partnership and I don't for a moment underestimate its challenges. But I think it's really worth trying for common purpose in these difficult times. We've a lot going for us as a people. We've faced great adversity in the past. When we pull together in any walk of life, we can really punch above our weight. That's what we need to do now.
That's what will get us through the current difficulties and have us ready to benefit from the global recovery when it comes.
ASTI centenary
I couldn't conclude without referring again to the ASTI Centenary year. Your association has made a remarkable contribution to education in Ireland.
Over the years, you have contributed to the forging of professional and committed teachers who have given distinctive service to the young people under their care, to their parents and to Irish society in general.
It's to the credit of the many officers and members of the ASTI that it's had an influence on many aspects of our nation's social, cultural, political and economic growth.
It gives me great pleasure to express warmest appreciation to your association for the valuable part it has played in Irish education down through the years and for its distinguished record of service to the people of Ireland.
As you start the second century of your organisation's work, I believe that we can have every confidence that the association will continue to serve education in this country in a manner that will match its distinguished record of service in the past.
Thank you.