Micheál Martin (Cork South Central, Fianna Fail)

The Government's position is very clear. We believe that the economy continues to show many signs of strength and all figures show that employment levels are high and rising. However, we have to be extremely vigilant about maintaining our competitiveness. The right policy response does not lend itself to a cheap headline but requires action on a broad range of fronts. These include responsible fiscal policies, investment in the productive capacity of the economy and reducing the burden of regulation.

The very reason Ireland's success has been built and sustained across a substantial period is that we have not stood still in our policy responses. We have not been complacent and have been willing to invest substantial resources putting in place the foundations for long-term success.

No responsible Government could ever promise every employee in every company that nothing will ever change for them — that is the path of irresponsible politics. However, we will promise that no one will match us in terms of our support of the conditions to help companies prosper and individuals to access high-skills, high-pay employment.

Our progress was unachievable without engaging with the international economy so we cannot expect to be immune from international pressures. The 2002-03 downturn represented the most significant recession of the last 20 years. We felt many of the pressures of this but we suffered less and came out stronger than nearly any other developed economy. This was because we reacted responsibly and we did not run around shouting "panic" which appears to be the extent of the detail of Fine Gael's economic policy.

It is instructive that Fine Gael chooses to ignore any positive signs in the economy. Time and again, its choice is to tell people to be fearful rather to be constructive. To suggest that this economy is uncompetitive is simply untrue. It is to deny the facts. Our living standards are high and rising. Our economic growth rates remain above the OECD average. Overall, life chances continue to improve. Together with Denmark and the Netherlands, we have the lowest unemployment rates in the OECD, the organisation of developed economies. We also have Europe's largest programme of infrastructure development and a growing record of dynamic achievement in human capital.

Lest we forget the ultimate goal of competitiveness, we have the fourth highest quality of life under the United Nations human development index. An uncompetitive economy would not have growing employment, rising living standards or continued significant foreign direct investment. There is no doubt that we face real threats to our competitiveness, which must be addressed, but to ignore the facts of continued strength makes one incapable of addressing these threats.

Sustained growth has resulted in the numbers at work increasing by 760,000 between 1997 and the third quarter of this year, an increase of 55%. This was not mentioned by any Member of the Opposition in their opening speeches this evening.

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