Bertie Ahern (Dublin Central, Fianna Fail)

On the construction side, it is always interesting to listen to the inconsistencies. When we were building 80,000 houses and everybody in construction was getting enormous salaries — the highest in Europe — the developers and construction people were all bad news around here. Now when it tightens up a bit everybody looks to the construction industry to pick it up. The Government has continued and will continue through the national development plan to put large amounts of money — approximately €6 billion over the next few years — into areas to improve our roads, transport infrastructure, sewerage and drainage, and continue to develop the country into a modern country. That is necessary. We have always recognised that employment in construction is important and we will continue to do that in the period ahead.

Regarding what Mr. Parlon, representing the CIF, said yesterday, negotiations on the social partnership in this round have started. Everybody is putting down their views. I do not believe in any area we should be organising to have races to the bottom. I do not think that is a good idea for any sector, but I understand negotiating positions are put forward by everybody. Some wanted a race to the top. As the Deputy has said, there are redundancies. Unemployment this year will increase. There is no doubt about that. To go from building 80,000 houses to 55,000 houses cannot require the same number of workers. Predominantly it is in construction and in some of the service industries linked to construction. So unemployment will drift up.

As far as the European forecast is concerned, it is not the case that people are putting doom and gloom about regarding the country. There are difficulties to manage in a more difficult climate, but the European Commission has delivered a very good assessment of the Irish economy. It has stated that what we are doing in the stability and growth process is a good improvement for us at a more difficult time. It stated its assessment represents a reasonable and broadly balanced view of the economy. It acknowledges the overall strength of our public finances. It acknowledges that we have a debt to GDP ratio which is very low. Deputy Kenny was saying it was the worst ever. At 26% and if one nets off, as one would under rules of accounting, the national debt, we have the lowest national debt in the European Union, maybe apart from Luxembourg which has never had any.

All of the indications from the European Commission are that we have a dynamic and well-educated workforce, that we are responsive to changing needs, and that our markets for goods, services and labour are flexible by international standards. In most of those areas we are increasing. We have effectively a regulated pro-enterprise society. Our burden of taxation is low, and productivity and inward investment is good. Yes, it is difficult for the reasons I said at the outset. We will have to manage it in a more difficult year and revenues will be down in a more difficult year, but manage it we will. Whatever we have to do we will do during the course of the year to keep this country and the economy strong and keep employment as strong as we can.

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