Mr. Nigel Nagarajan:

In my initial attempt to answer Deputy Donnelly, I focused on the relationship between supply and demand and tried to explain that demand was likely to return in a different form from that which it took in the past. I did not say anything about the need for demand except for one small remark. I agree with Deputy Donnelly that we need demand to come back. What we are saying in the annual growth survey is that there is scope, notwithstanding the need for fiscal consolidation, for targeted measures to boost employment and growth provided that they do not put public finance sustainability in doubt. The survey sets out a number of different areas in which this can be done. I also referred to improving access to credit to allow the private sector to play a role in creating demand. I mentioned the role of AIB in providing access to credit.

I do not disagree that we need a demand component. It must be one that is compatible with the overall approach of restoring the sustainability of public finances and it must be beyond public sector actions. We need actions that facilitate the private sector to create jobs. There can be no disagreement with the Deputy's general remark that demand must come back.