Brian Lenihan Jnr (Dublin West, Fianna Fail)

We are in the middle of an acute global financial and economic storm and this country is not immune from its impact. However, let us not lose perspective.

During the past five years, we have had an average growth rate of 5.5%, among the highest in the EU. Our Government debt in 2007 fell from 32% to 23% of GNP. We have put more than €15 billion into the National Pension Reserve Fund since we took the prudent step of establishing that fund in 2001. It now stands at €19.5 billion. Also, we have invested more than €30 billion in the biggest public infrastructure investment programme per capita in the EU.

This is the record that has been dismissed as "reckless budgetary policies" in the motion tabled by the Deputies opposite. By all means, let us have debate about the economy but let us not engage in the kind of dishonesty and misrepresentation that does no service to this House or to our economic achievement in recent years, achievements not alone by Government but by the people. Our record is there for all to see. Based on that record, we will take the necessary action to ensure we safeguard and protect the substantial gains that have been made during the past 15 years.

The continuing turmoil in the global financial markets is having a detrimental effect on economies right across the developed world. Growth forecasts in all of our trading partners have been revised downwards. As a small open economy, Ireland was never going to be insulated from this international downturn and these developments combined with the appreciation of the euro exchange rate have created a difficult trading environment for our exporting sector.

In addition to this unprecedented conjunction of unfavourable international factors, we are experiencing a very sharp correction in the house building sector which has been exacerbated by the global liquidity crisis.

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