Brian Cowen (Laois-Offaly, Fianna Fail)

A criticism from the other side of the House, depending on which side of the debate one is on, is that too much is being spent. In the interests of good budgetary discipline, we are trying to ensure all voted expenditure will come in on target, which is the best way to maintain improvements in services year on year. To do otherwise would be to put the improvements at risk, which would be in no one's interests.

The programme for Government sets out clearly that we are working on the basis of a budgetary policy that seeks to maintain a broad budgetary balance. All spending commitments are made in this context because we must maintain improvements, keep unemployment at low levels, continue progress and achieve growth in the economy. Our budgetary stance as outlined is consistent with the discussions that took place.

Concerning productive potential, expanding the productive capacity of the economy is important because we must continue to identify areas that can sustain growth. This should be given priority and would be consistent with the national development programme in terms of the capital investment programme and the contribution it can make to offsetting next year's unexpected reduction in the residential property market's output compared to this and previous years' historic highs.

In previous budgets I ensured the general government balance was in surplus. I hope there will be a similar situation this year. By having room to manoeuvre in good times, one can deal with a situation as it arises. My pre-budget outlook will outline the updated opinions of the Department in respect of prospects for growth.

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