Enda Kenny (Mayo, Fine Gael)

I would like to ask the Taoiseach a number of questions on money and related matters, the disappearance of it and the use of it. I did not organise that response from the Visitors Gallery. The Taoiseach, the Minister for Finance and the rest of the Cabinet have blown most of the wealth generated over the last ten years, turned a budgetary surplus of €2.8 billion into a project loss of €5 billion this year and preside over a property market in serious decline.

Deputy Cowen's budget for 2008 was based on a moderate slowing of economic growth from 4.8% to 2.8% for this year with a projected moderate slowing of day-to-day spending. However, since he presented that budget the growth forecast for all our major importers — the UK, the eurozone and the United States — has been significantly downgraded and this puts us in a position very different from Deputy Cowen's forecast. The latest figures show a further decline and fall in exports. The Minister for Finance's reluctant and half-baked measures on stamp duty for the housing sector have done nothing to maintain confidence in the construction industry where house prices are falling by €1,500 per month and where the latest realistic projection is that we might reach 30,000 new starts this year. Consumer confidence has fallen to a five-year low, the Irish stock market has fallen seriously and people have genuine concerns about pensions. Irish banks have revealed that they are exposed to a debt of €140 billion due to property speculators, which puts them more in hock than the Japanese banks were before their crisis in the 1980s. International investors are fleeing this country and there is a dissipation of confidence in the Irish economy.

One could be accused of national sabotage for talking about this, but it is necessary that we have responses from the head of Government and the Minister for Finance on the plans they have to restore domestic and international confidence in the Irish economy regarding the issues over which they have control. They are not responsible for such issues as the fall in the American stock exchange, however certain issues at home have changed since the Minister presented his budget before Christmas. What is the response of the Government? What action will it take? What plan has it to restore domestic and international confidence in our economy?

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