Brian Cowen (Laois-Offaly, Fianna Fail)

That deterioration must be addressed by the Government examining further programmes to see in what way we can ensure that going into next year, as challenging as it may be, we can seek to stabilise finances further.

The Deputy mentioned further borrowing in order to borrow our way out of a problem, but that is not necessarily a lesson that remains unlearned in this country. We must recognise that, even in the difficult times in which we are operating, there is a considerable commitment by the Government to invest in a capital programme of over €8.2 billion. That is, quite rightly, a significant commitment by the Government given the part of the economic cycle we are in at the moment. It certainly does not offset the reduction in economic activity in the private sector in view of the openness of the economy and the difficulties we now face, but it is a considerable commitment of over 5.2% or 5.3% of GNP in next year's capital programme.

The real issue is the need to continue to work on stabilising day-to-day expenditure in excess of revenues. That is the structural issue that must be addressed and on the basis of figures to emerge we will have to continue our work in that area and identify measures to ensure the sustainability of the public finances. Our top priority is to ensure we do so because that is the basis upon which we can determine a sustainable level of public services in future. On the basis of a deficit on the current budget side and in the overall public finances at the end of this year and into next year, one must consider the question of a stimulus package. We already have in our expenditure a stimulus package on capital investment which is, on average, double that which our European partners are in a position to commit to in respect of public investment programmes.

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