Michael Kennedy (Dublin North, Fianna Fail)

I take umbrage with Deputy Burton's assertion that our policy-makers are belatedly responding to the country's economic situation. There is no denial of Ireland's economic state on this side of the House but merely a steely determination to get on with running the country and not spend our time talking ourselves into a recession.

The one thing Deputy Burton got right is the strength of the Irish economy which she outlined last night, namely, our young educated employees; our hardworking, diligent more mature workforce; our strong education infrastructure; our healthy jobs market which despite detractors still outperforms most European economies; and our improving public transport infrastructure. The Government is investing in these areas, as did the previous one. This is the course on which the former Minister for Finance and new Taoiseach is steering us. These factors will ultimately give re-birth to the economy, according to today's ESRI report.

There is no doubt there has been a downturn in our economy but as the Minister of State, Deputy Mansergh, said last night, this is as a result of our country being an integrated economy. This integration ensured our economic growth and will allow us to grow in the future. Once we steer this ship carefully and spend in line with our growth, we will stay on course to remain one of Europe's most vibrant economies.

Difficulties in the USA have not helped and the UK and other countries find themselves in a similar position. International problems affect us and it would be the height of arrogance to expect that Ireland would be immune. We have been hit by the price of oil, the sub-prime lending crisis in the US and the strength of the euro and the knock on effect on trade. To imply that this Government is not capable of dealing with the issue, or worse not willing to do so, is irresponsible at best.

Fianna Fáil and its partners in Government have presided over the greatest economic growth this country has ever witnessed. Deputy Burton mentioned that when the Labour Party left power in 1997, 1,000 new jobs were being created weekly. I remind her that was at a time when unemployment was over 10%. It is now half that.

See this speech in context