Brian Cowen (Laois-Offaly, Fianna Fail)

We have a responsibility whether times are good or bad. The consistent policy framework we have adopted over the past ten years has served the country well. During that period there was extraordinary economic growth and employment creation with a reduction of our indebtedness by half. We are in a position to withstand some of these external shocks far more capably than would otherwise have been the case.

I made a response in my budget to emerging economic downside risks. These had begun in August 2007 with the fall-out from the US sub-prime market problems that led to an international credit crunch. My budgetary stance represented a 1.5% of GDP stimulus to the economy at a time when the downturn was emerging. That was the right choice to make. I felt the right course was to borrow modestly to invest ambitiously.

An extra €1.7 billion will go into the economy on social expenditure, half of which will go to social welfare recipients to protect those on the lowest incomes. A €500 million tax package will put more money back into workers' pockets ensuring they benefit from their productivity. A further €1 billion extra over what was planned will go into the national development plan capital investment programme. That is a measured and responsible response to the downside risks that were beginning to emerge.

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