Brian Lenihan Jnr (Dublin West, Fianna Fail)

A number of Deputies opposite have suggested that the measures the Government proposed are ill-conceived and rushed. I assure the House that we were careful in developing the measures to protect the vulnerable and the economy as far as possible.

We have been preparing the ground for some time. In his budget speech last year, the Taoiseach, then Minister for Finance, announced a wide-ranging efficiency review. That review asked Departments to examine all their administrative spending as well as the administrative spending of all bodies and agencies under their aegis with a view to identifying possible savings. Many of the proposals with regard to savings have emanated from that review. All Departments have identified a range of administrative savings that are now to be acted upon.

Throughout the year officials in my Department have been carefully and assiduously monitoring developments in the Irish economy. As evidence began to emerge of revenues being behind profile, they began work on plans to address fiscal problems. While the economic situation is changing fast, the deterioration if not its extent has been clear to my Department for some time and we have been planning accordingly. Furthermore, that work will continue over the summer. While the issues involved are complex, the targets that the Government has set are stringent and it is committed to achieving these efficiencies and the resultant savings. I believe that the savings on administrative costs can be realised across all Departments and agencies. The Government is determined to secure maximum value for money in our public services and concentrate resources on frontline service delivery.

A number of Deputies have joined the chorus of outside commentators in calling on the Government to breach the conditions of the Stability and Growth Pact. Our aim for good reasons is to adopt policies consistent with the Stability and Growth Pact. There are few Deputies in this House who do not remember the 1980s and the state of the public finances. During that period the public finances went out of control as a result of an accumulation of bad policy decisions.

See this speech in context