Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

I acknowledge that Deputy McGrath has agreed the economy is recovering. I also acknowledge that many people have yet to experience that in their lives. We are seeing an increase in employment - 3,000 additional jobs per month. We have seen a drop in the live register figures this week and the level of unemployment is at its lowest level since 2009, down to 13.3% from a high of 15.1%. We are also seeing improvements in areas such as construction. Over the course of the past year, there has been an 11% increase in construction activity. More significantly, we are seeing an increase in the number of planning applications, which were up approximately 37% last year. All of this indicates an improvement.

In regard to the budget, the Exchequer returns show that Ireland is now on track to meet its targets in 2013, with tax receipts on profile and expenditure under control in the year to the end of September. This highlights again the consistent improvement in the management of Ireland's public finances by the Government. The Exchequer deficit at the end of September 2013 stood at €7.142 billion, which is €4 billion lower than the same period last year. The tax base is growing and we have just under €26.9 billion in taxes collected this year, up €768 million on the same period last year - an increase of almost 3%. More significantly, income tax receipts were up by €400 million last year. Given that there was no increase in income tax last year, this reflects the overall increase in the number of people now at work in the economy. VAT is up by €80 million, reflecting an increase in retail activity.

On the broad budget issues, I have said from the beginning of public discussion that I believed it was possible for us to meet our target this year through a budget adjustment of less than €3.1 billion, which was the figure being advocated by many commentators. The Minister for Finance confirmed yesterday that it should be possible to meet our targets this year through an adjustment of less than €3.1 billion. Deputy McGrath is correct in saying that budget discussions are at an intensive stage. Obviously, they will not be completed until closer to the budget and at that stage we will have a final figure for the adjustment.

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