Brian Cowen (Laois-Offaly, Fianna Fail)

In 2008 we came in on target for our expenditure. We have had a collapse in tax revenues both last year and continuing this year. That is having its impact in a way that we now need to address. On the basis of the Exchequer figures that appeared yesterday the Government made the immediate decision that we would bring forward a supplementary budget in the context of a wider stabilisation plan that is necessary so that we can outline to the people the likely political choices that need to be made by whatever Government is running the country in the coming years on the basis that we are in recession and the economy is contracting.

With regard to some of the measures the Deputy has proposed, in the coming weeks we need to consider the costs of some initiatives. I am sure parties will not only take up the opportunity of being briefed by the Department of Finance but will also seek costings for any ideas or proposals they believe would be appropriate at this time. Not only do we need to work out the costs and come up with the figure that meets the budgetary requirement, but we also need to work out the impact of those choices and ensure in the rather fragile economy we have today not only that the figures add up in terms of the mathematical issue but also assess the impact those choices will have and how they interact with each other. In other words, what is required is an overall budgetary framework that will make sense in the circumstances, which of course will in no way make it any less painful for the people in terms of implementing the decisions that are necessary.

To come to the four specific measures proposed by Deputy Kenny which have merit, I am sure, in terms of dealing with the budgetary situation it is highly unlikely that any of them meet the basic requirement of raising revenue. I agree we need to consider the demand side of the economy to establish if there is anything we can do not only to boost demand but at least to maintain demand at the lower level at which it is at the moment. However, the Deputy's suggestion of a loan guarantee scheme and the idea that any such proposals would raise revenue——

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