Martin Mansergh (Tipperary South, Fianna Fail)

I strongly support the counter-motion put forward by the Government. Our economic difficulties may have specific domestic characteristics, but they do not exist in isolation. As a small, open economy external developments have a major impact and the global rise in commodity prices has contributed to an erosion of consumer spending power. The appreciation in the exchange rate has also contributed to rising competitive pressures for our export sector, particularly in the context of sluggish demand in several of our major trading partners.

I wish to draw Deputy Varadkar's attention to a report in yesterday's Financial Times that says the eurozone is now in recession. Some have tried to give the impression that only Ireland and one or two other countries are in recession but it is far wider than that. This is all taking place against a backdrop of international financial market instability over the past year, particularly the past few weeks. It is essential that the Government participates fully in global discussions and this is especially the case given the uncertainty created by the "No" vote in the Lisbon treaty referendum. That referendum saw a person, exposed in today's Irish Examiner as a neo-conservative warmonger, hijack a sector of Irish public opinion.

On the domestic front, the ongoing adjustment of the house building sector to more sustainable levels of output is having a negative impact on the economy and employment.

Following a decade and a half of solid expansion, these factors are placing considerable strains on the economy and are having a detrimental impact on the public finances and on employment. At least, however, we are starting from a strong position all round. Certainly, even in a worst-case scenario, the national debt will be nowhere near the level of greater than 100% of GNP that it reached 22 years ago.

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