Michael Ahern (Cork East, Fianna Fail)

I am delighted to have the opportunity to say a few words about this Bill and what is happening in our economy.

We are all aware that the world is in recession and we are becoming more aware of this every day, although some people are in a state of denial. We are experiencing a greater contraction in activity in the economy than was anticipated. In his past year, as Minister for Finance, the Taoiseach indicated that the Government was aware of the downturn that was coming, especially in respect of the building sector, and he stated the effect that would have on our growth rate. Nobody, whether politician, economist or banker, foresaw the collapse of the banking system around the world, commencing with Lehmann Brothers and others in the United States, the United Kingdom and elsewhere. This had a serious impact on our economy because we export 85% to 90% of our goods, which accounts for the same percentage of our GDP. A total of 18% or 19% of our exports go to Britain. The 30% devaluation in the British pound against the euro had a significant effect on our exports to that market and similarly to the US which takes 20% of our exports. Despite this we have held our share of the export market compared with similar trading countries, such as Singapore which has lost up to 30% of its export markets, and Taiwan which has lost 40%.

Opposition speakers continue to say the Government has no strategy but this is patently untrue.

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