Brian Cowen (Laois-Offaly, Fianna Fail)

What I had to say over the weekend was addressed to the Irish people — everybody. I did not get involved in any party-political jousting whatever because of the seriousness of the situation we face. I therefore do not accept the Deputy's critique.

The substance of the Deputy's question relates to the Exchequer returns for the end of February, and they are disappointing. It is clear that tax revenues in 2009 are under pressure. We are in a very serious situation, as we have been outlining, and a serious economic downturn. As was clear to me from my attendance at an EU meeting on Sunday in Brussels, the European Central Bank and the Commission will also be revising downwards their forecasts for the European economy, as this global recession continues to bite hard everywhere.

The Deputy has referred to the counter motion tabled by the Government in which we indicate that by the end of the month we will take whatever steps are necessary to ensure the framework we have set for ourselves, that is, a 9.5% general Government deficit for 2009, will be adhered to. It is important for the credibility of the country that we do so. Before the end of the month we will come forward with whatever measures are necessary, either in terms of expenditure savings or tax raising measures. The end of February returns reveal a figure of €5.759 billion, as opposed to €7.562 billion for the same month last year. We are committed to restoring the public finances to a sustainable position and action will be taken to ensure the deficit will not worsen from the forecasted figure of 9.5%. We have indicated what the first steps taken were. Further measures must be taken by the Government during the course of the year. I hope to set out a more medium term position by the Government in order that the people will be able to see the scale of the challenge and what must be done to deal with it.

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