Dáil debates

Thursday, 25 September 2008

Irish Economy: Motion (Resumed)

 

11:00 am

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)

I am delighted to have the opportunity to say a few words in this debate. The greatest challenge facing us and the Government is to manage the economy through the international downturn we are experiencing, which is likely to continue for a considerable period. There has been a rapid slowdown in the global economy arising from turbulence in the global financial markets, the credit squeeze, exchange rate shifts and the sharp rise in oil prices. No one knows how quickly stability can be restored to the financial and equity markets worldwide. As a small open economy we depend on exports, which represent up to 85% of our GDP. Exports are the major driver of our economic success. This means we are more exposed to those international factors than many other countries. In conjunction with the dramatic slowdown in the housing market, this has had a dramatic effect on tax revenues, which leaves the Government with considerably less to spend.

It is important to set the record straight on what has been achieved over the past 20 years or so. The people have, through their application, talent and flair, established an economic platform that was unimaginable back then. There has been an average growth rate of 5.5% over the past five years. Government debt has fallen from 32% to 23% of GNP and €19.5 billion is now invested in the National Pension Reserve Fund. An investment of more than €30 billion in the biggest infrastructure programme per capita in Europe has been commenced. Money was invested in schools, roads, public transport, communications, housing and the health service. We have also dramatically increased the State pension for our elderly and child benefit for families with young children and we have significantly reduced the tax burden, particularly for the lower paid and those on average incomes. We have increased the number of gardaí, teachers, doctors, nurses and special needs assistants, and increased investment significantly for those with disabilities. As the Minister, Deputy Lenihan, said yesterday, this is the record that has been described as representing reckless budgetary policies. I ask the Opposition speakers to tell us what areas should not have received increased funding and where they would cut back expenditure.

Comments

No comments

Log in or join to post a public comment.