Michael Ahern (Cork East, Fianna Fail)

I do not agree with the Deputy's contention that we have been smug and unaware of what was coming down the tracks. The Tánaiste and Minister for Finance stated in his budget speech that estimated economic growth in 2007 would be approximately 4.7% and it would average 3.25% between 2008 and 2010. He also stated the economy had reached a turning point and was entering a phase of much lower growth. This is due to a combination of factors, including a weak dollar, weak sterling, interest rates and a slowdown in the housing market, which everybody acknowledges and which is having a significant impact on the economy. The budget estimated employment growth at 3.5% in 2007, which equates to 72,000 jobs, but a reduction to more than 1% in 2008 or 28,000 jobs. Employment increased between 2004 and 2007 by 247,300 and for the first time ever more than 2 million people are employed in the State.

However, we acknowledge there are problems and we must ensure competitiveness is protected and red tape is reduced. We have plans to do so and I will go into this in more detail when I reply to a later question. The Government accepts we are in a different scenario from a number of years ago but we are taking steps to ensure jobs are protected and continue to entice foreign direct investment, which has been good to this country over many years.

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