Bernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I thank the Minister. I was interested in the discussion I heard at the outset on the need for continued spending in the aftermath of Covid and, as far as this country is concerned, of Brexit. I strongly support the concept of prudent spending. This does not mean it is not necessary to spend more than would be advised at other times. I noted in the course of the conversation there is a difference between the circumstances prevailing now and the circumstances 12 or more years ago. It is now possible under the EU rules to borrow at very low interest rates. What is equally important is the use to which the funds are put. If they are put to good use the country will reap the harvest it deserves. If not, other things will happen. Reference is often made to austerity as if were a tool used by government, and it can be used, to slow down economies or to accelerate growth. However, there were some circumstances in which there were no choices. Because there were no choices there was nothing that could be done because there was no money. All of us need to take this on board and remember that the situation that prevails now would not have come about unless careful management of the funds was undertaken at that particular time.

As the Minister knows, I have often been critical of economists. I usually start by apologising to them in advance. In particular, in the aftermath of the economic crash they came forward from various areas with advice all of which was proved wrong. Someone I respected over the years is no longer with us. John Kenneth Galbraith served four Presidents of the United States. Something he said which is pertinent now is that in the event of introducing stimuli to the economy there may be a necessity to control prices. His reason for so doing was that on every occasion it happens there is an increase in price. There is an increase in building costs now. There is an increase in materials. There are various increases for which I certainly cannot identify the real reason. Arising from the huge supports the State rightly had to give the economy and people in the past 18 months or so is there a danger that we could be overtaken by inflation that would create additional problems for the country further down the road?