Enda Kenny (Mayo, Fine Gael)

This morning, the Minister for Finance revealed that we are living beyond our means despite the fact that, some weeks ago, he stated that this was the way in which people wanted us to go. We have been led into the middle of an economic swamp by the most disastrous Government of the past 40 years. Confidence in the economy has fallen and there is no strategy or plan to get us out of this situation.

Just six weeks ago, the Government set out a projected borrowing in 2009 of €13.4 billion. Given yesterday's figures on Exchequer returns to the end of November, the projection will be out by at least €5 billion, meaning a possible borrowing of up to €20 billion. This morning, the Minister for Finance stated that only a certain amount of taxation can be levied and that he does not expect further tax increases in 2009.

The Government has established another subcontractor to make recommendations on how to rein in public spending. If there are to be no further tax increases in 2009, does the Government intend to rectify the economy by cutting public spending by €5 billion and revisiting the national pay deal?

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