Mary Harney (Dublin Mid West, Progressive Democrats)

I am very proud and privileged to speak as a member of the Government and I thank the Taoiseach for the confidence he has shown in me.

I want to deal with a number of issues raised. I was recently travelling from my constituency clinic when I heard a debate on "Saturday View" on the state of our economy. One contributor said that when capital gains tax was halved in 1997, it was the worst possible development. The contributor claimed it meant we did not have sufficient resources for health, education and welfare. I remember being somewhat amused listening to that because the reality is very different. The very first year after the halving of capital gains tax, the yield increased by 87%.

I listened this evening to the contention that when the current parties came into Government in 1997, they took over a wonderful economy from the Rainbow Government, and that it is the current Government's fault that the economy is now in difficulty. It was alleged that the success was due to our predecessors and that the failure is because of our own efforts. I do not believe in going back over history too much because it is the future that matters, but the reality is that the policies pursued since 1997 — although not exclusively because excellent policies were pursued by our predecessors — have contributed greatly to the economic prosperity this country enjoys today.

Unemployment in Ireland today is a third of what it was 20 years ago. Deputy Ó Caoláin should note that the last thing this country needs is to isolate itself from the action in the European Union. Ireland would be nowhere economically and socially without it, and its place in the world will be diminished if it does not continue to be at its heart.

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