The Taoiseach Brian Cowen spoke of the serious problems that face the economy and the need for a national effort to right the public finances on The Late Late Show on Friday night.

His sombre demeanour had a relatively calming effect – or perhaps that's the feeling of being punch drunk from economic bad news constantly comin'atcha.

But it's a relief to know that at last a significant campaign is beginning to prepare us for what is going to be the most difficult year economically this country has experienced in almost three decades. It is not going to be easy – Cowen's statement that "the events that shaped us in adversity are just as relevant in prosperous times as well" will bring a shiver to those who remember the budgets of Mac the Knife and Brutal Bruton. That is why it is so important that leadership is sustained, day in, day out.

The decision to bring the budget forward to 14 October has debatable benefits. Yes, it signals a new seriousness and an attempt by the government to be seen to take control of the public finances crisis, but the opposition parties have a perfectly reasonable point when they question whether we would be in such a crisis had they acted (rather than promised action) when it was glaringly obvious cutbacks were needed. They asked for the Dáil to be recalled during the summer and were refused by a government insisting it was on top of the job.

It is true that the pace and scale of the economic downturn is historic but the government have been far too focused
on internal politics rather than national economy.

Bertie Ahern – still popping up here, there and everywhere – was, and remains, in the public mind a diversion for Brian Cowen and the real business of government. If he wants to help Brian Cowen, he should leave the stage to the real Taoiseach, the Taoiseach Brian Cowen, that is.

The cutbacks, when they come, will be deeply unpalatable but the only way they will be tenable for the electorate is if they are fair.

A public sector pay freeze for the best part of a year looks like it will be agreed when the pay talks resume tomorrow. This will make a good start because, as Brian Lenihan pointed out, every 1% in public pay represents an extra €180m in expenditure. A freeze for that long is vital and instead of resisting it, the unions must put all their efforts into securing a safety net for the low paid.

There is no greater moral hazard, to coin that wonderful phrase of the governor of the Bank of England, Mervyn King, than to bail out the builders and the banks in these times.

Taxpayers faced with painful cuts to public services, the 74,000 people who lost jobs last month alone, the many more whose jobs are on the line and who want children educated, health services accessible to all and the elderly cared for will not thank this government if they even think of bailing out those who nakedly profiteered from the boom and who are now facing harder times.

It was the insatiable greed of the builders and the irresponsibility of the banks that caused the bubble that has left us more exposed than our European neighbours to the international ills currently pounding everyone.

The best favour the government can do for first-time buyers is to let the price fall to a level where people feel it is good value. It would be far fairer, and more useful, if the government turned its attention to using the building skills available for the construction of badly needed schools and to insulate the houses that were so poorly built in the past.