Bernard Durkan (Kildare North, Fine Gael)
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Question 196: To ask the Minister for Finance if he will set out his priorities in the context of his targets to create the atmosphere for economic revival and competitiveness in the economy; and if he will make a statement on the matter. [20370/11]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that this Government's overriding aim is to return the economy to sustainable growth which will underpin an improvement in the labour market. There are three key conditions for doing so:

- restoring order to the public finances,

- a functioning banking system, and

- improving competitiveness.

The Government is committed to restoring order to the public finances and to reducing the General Government deficit to less than 3% of GDP by 2015. Significant budgetary adjustments have already been implemented, and while progress has been made in tackling and stabilising the deficit, further measures will be required to keep the corrective process on track.

A functioning, well capitalised banking sector is a prerequisite for a sustainable economic recovery. The Government has taken concrete steps to ensure that the Irish banking system is fit for purpose, right sized, adequately capitalised and with a focus on the Irish economy.

As our recovery will be export led, it is crucial that the competitiveness gains made in the last number of years be sustained. To this end, both the Programme for Government and the EU/IMF Programme outline a series of structural reforms, which will help to further restore competitiveness and support economic growth. These include:

- a comprehensive review of the REA & EROs which has been completed

- legislative changes to remove restrictions to trade and competition in sheltered sectors which is in process

- review of the electricity and gas sectors which will be undertaken before year end

All of the above are having the desired effect – the latest figures from the CSO show that the economy is growing once again, led by exports. Despite this, the Government is not complacent and is well aware that further improvements in our competitiveness are essential to ensure a sustained recovery.