Bertie Ahern (Dublin Central, Fianna Fail)

In 1997 and 2002, I heard similar arguments within the first few months of the new Government's term of office about the stage of the economic cycle we were at. I was asked whether the Government would be able to implement its entire programme for Government by the end of its term. As Deputy Kenny is aware, the last two programmes for Government were implemented almost in full. While a small number of items in those programmes were not implemented, other items which were not mentioned at all in the programmes were implemented.

Good financial management is the overall principle that underpins the work of the Government. That is what is important for the country. It is our intention to keep the budget in balance, almost in balance or in surplus, as we have been doing for the better part of 20 years. When the cycle is at a particular stage, we have to continue to stabilise the economy. We need to reduce the debt-GDP ratio when we can, as we have done almost every year for many years. We have to continue to cut taxes when possible. We will honour our commitments in respect of rates and credits, as we have done to date. We have to respect the commitments into which we enter with the social partners, including the voluntary and social pillars and the active retirement groups in relation to pensions. We need to bring the ratio of welfare payments up to the figure that we fix. We have done all of these things in the past and we believe we can meet our commitments in respect of them again. The national development plan involves expenditure of €184 billion over seven years. We have made a commitment to complete the acceleration of Government investment across a range of Departments and agencies. Over a five-year period, perhaps some issues may have to be put back a bit at some times. I do not see, within the financial model used which was cross-checked with the Department of Finance and the detailed figures, that we will not be able to implement our programme in a comprehensive way. The fact is this year's surpluses are not as big but by prudent management of the economy and the reduction achieved in the debt over the past number of years we now have an historically low ratio of debt to GDP which is saving the country a significant amount of annual interest payments.

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