Bertie Ahern (Dublin Central, Fianna Fail)

I agree with Deputy Kenny and congratulate the Minister for Finance on an outstanding result in the six month figures. By any standard, these are good figures. They consistently follow what this Government has been doing in soundly managing the economy through excellent fiscal policies. Yesterday's figures show that an Exchequer surplus of €880 million was recorded in the second quarter of 2006. That compares to an Exchequer deficit of €594 million for the second quarter of last year. The budget deficit is at a far lower rate than we expected.

Due to the success of the economy, the great inward investment and the strength across the pharmaceutical, ICT and construction industries, tax yield is about €1 billion ahead of target. Tax receipts to the end of June are approximately 5.3% above the profile. I doubt that Deputy Kenny was questioning the figures or those who prepared them but obviously it is hard for people to compare the strength of the economy when it is growing at a rate so many percentage points higher than anywhere else in the European Union and in the world economy. People in the United States, Japan, Australia, Canada and the rest of Europe can see that we are outperforming them. The three tax heads, income tax, VAT and excise, are almost exactly on target and corporation tax and capital taxes are well ahead of target. Overall, it looks as if taxes for the year will come in €1.75 billion ahead of target.

Overall net voted spending to the end of June has increased by 9%, it is behind the target set for this stage. Deputy Kenny is talking about next year but this year we are spending less than our forecasts and prudently keeping with the targets.

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