Brian Cowen (Laois-Offaly, Fianna Fail)

Tá a fhios ag an Teachta go bhfuil an ghéarchéim eacnamaíochta atá againn faoi láthair chomh tromchúiseach sin nach mbeimid in ann an córas cánach a bhí againn go dtí seo a fheabhsú mar a bhí muid in ann staid an ghnáthphobail a fheabhsú gach bliain le deich mbliain anuas. Ní féidir linn sin a dhéanamh as seo amach. Beidh athruithe ag teacht ó thaobh an córas cánach de. Níl cinneadh déanta ag an Rialtas go dtí seo, tá múid ag déanamdh scrúdú ar na roghanna atá againn agus beidh ar gach éinne fanacht go dtí an buiséad nua go bhfeicfimid na cinntí atá déanta againn. Tá an eacnamaíocht go ginearálta lag i mbliana, beidh laghdú 6.5% sa gheilleagar, nó níos mó b'fhéidir. Is géarchéim í seo nach bhfaca muid riamh sa tír seo.

The programme for Government was laid down on the basis of growth of 4.5%, which provided greater resources and, therefore, an ability to indicate further reforms and improvements in the tax area in addition to those already brought forward by successive Fianna Fáil-led Administrations since 1997. The new situation means we must look in the short and medium-term at sustainable systems of taxation for the country in the present circumstances that will be helpful for the investment climate, difficult as it may be, and that will allow us to compete for foreign direct investment while assisting indigenous industry.

The whole thrust of policy in the past was to minimise to the greatest extent possible tax on income, labour and business so we could ensure the greatest number of people possible could obtain work in our country. A great many did and got jobs commensurate with their talents and abilities. The situation has changed internationally and domestically and we must now see a way forward that broadens the tax base and ensures we raise sufficient funds to meet the requirements of basic public services.

The gap that has arisen, despite our low debt, is significant and must be closed. We have said many times that we tried to devise a taxation system based on the ability to pay, consistent with the promotion of enterprise, the maintenance of the maximum number of jobs and as fair a system as possible. That always has been our objective and the record of successive Fianna Fáil-led Governments has been exemplary in that respect. We must now look to see how we can reconfigure this in a way that will maintain jobs in the future.

This must be done against the background of a fragile economy and the swift change in our fortunes makes it all the more difficult. We cannot avoid the necessary adjustments if we are to fulfil our responsibilities, difficult as they may be for those privileged to be in Government at the moment.

I do not agree the programme for Government is irrelevant. The programme was based on different assumptions but through annual departmental statements and outputs, and debates on the budget, education or any other sector of the economy, Ministers can outline their priorities. Those priorities are the focus of debate because they must be addressed in the new circumstances in which we find ourselves. The Government's work is focused on getting this necessary work done. We have seen much work done in the first three months of the year in terms of the financial crisis and the legislative response to it and the need to provide for capitalisation. There has been much debate in the House on the emergency legislation that has been brought forward.

We will do whatever is required to meet the top priorities of the day. In this case it is our economic well-being. Those are the issues that must take precedence over all else. The Deputy is suggesting that the commitments in the programme for Government are meaningless, but they were conditional. I reiterate that all programme commitments of successive Governments were conditional. Any programme for Government worth the name has a budgetary parameter, without which it would be rendered meaningless.

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