Brian Cowen (Laois-Offaly, Fianna Fail)

A correction is taking place in the housing market, as Deputy Gilmore says. That has a drag of about 4% on growth this year, according to the ESRI. I will not go over the history of it but the uncertain tax cuts proposed by the Labour Party over an uncertain period during which we needed to bring buoyancy into the market and bring prices down to affordability levels, by what we subsequently did, is a matter that the people decided upon 12 months ago. I stand over my arguments in respect of that.

The Government intends to proceed with the budget and expenditure programmes in line with its plans for this year. A reduction in our tax revenue is forecast which means that our deficit will be greater this year than we had planned. For 2009 and 2010 we must devise a budgetary strategy to ensure we maintain sustainable services. Our room for manoeuvre is less than would otherwise be the case, but we must make sure we prioritise our expenditure and we will do so in the context of our Estimates campaign. In the meantime, when Deputy Gilmore refers to maintaining confidence, that will not be done if the Opposition critique is that we go back to the 1980s. That is not the critique of the ESRI or anyone else from whom the Deputy is trying to find support for his position. That is not the position and the ESRI does not say that. We are not back to the position in which we were in the 1980s——

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